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CSEET · Economic and Business Environment · AI and Business Environment

An Indian company uses an AI tool that scans résumés and ranks candidates for interview. Which risk is most specifically associated with this human resource application if the tool is trained on past hiring data?

The main specific risk is algorithmic bias. When a screening model learns from past hiring data that reflected prejudice, it can replicate those patterns and unfairly rank candidates, so human oversight and audits of the tool are needed in HR use.

  1. AAlgorithmic bias that repeats past discriminationCorrect
  2. BLoss of sensor accuracy in machines
  3. CInability to store any candidate data
  4. DAutomatic increase in the company's share capital

Explanation

If historical hiring decisions were biased, a model trained on them can learn and reproduce that bias, leading to unfair shortlisting. The other options have no connection to résumé-screening models.

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