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Judy Ellis

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Driving Business Growth with DEIB: The Ultimate Advantage?

Contributors:

Celine Raffray

VP, Talent Acquisition, Bristol Myers Squibb

Judy Ellis

Head of Diversity, Equity, Inclusion and Belonging Advisory, AMS

Michael Caley-Cook

Senior Manager, Diversity, Equity, Inclusion & Belonging (DEIB) Centre of Excellence, AMS

Kathi Enderes

Senior Vice President of Research, Josh Bersin Company

Paul Modley

Managing Director, Diversity, Equity, Inclusion & Belonging (DEIB) Centre of Excellence, AMS

Jacqui Welch

CHRO at the New York Times and Non-Executive Director, AMS

In today’s rapidly evolving cultural and political landscape, the importance of Diversity, Equity, Inclusion, and Belonging (DEIB) cannot be overstated. The significant benefits of DEIB for businesses lie in how DEIB strategy can drive both business and cultural success, positioning organizations for long-term growth and resilience.

Research consistently demonstrates the tangible benefits of DEIB. McKinsey’s findings, reveal that companies in the top quartile for board-gender diversity are 27% more likely to outperform financially than those in the bottom quartile. Additionally, Harvard Business Review found that diverse teams have been shown to be 70% more likely to capture new markets and 87% better at making decisions than homogenous teams.

Inclusive leadership plays a pivotal role in fostering a thriving DEIB environment. According to a 2023 study by Deloitte, inclusive leadership can increase employees’ feelings of belonging by an impressive 70%. Inclusive leadership also helps organizations adapt to diverse customers, markets, ideas, and talent, which is crucial for staying competitive in a global market.

These indicators underscore the substantial benefits that diverse teams and inclusive leadership bring to businesses, driving both financial success and a positive organizational culture. This accentuates the tangible impact that these teams and leaders can have on business outcomes.

The current DEIB landscape

The US Supreme Court decision to end affirmative action in higher education triggered considerable controversy with social and political disagreement about the role of diversity initiatives in the corporate world. While the requirements for US federal contractors to conduct diverse outreach and employers with 100 or more employees to file EEO-1 reports remains in place, the politicization of DEIB has led to increased scrutiny and has sparked debate about the role of diversity initiatives in the corporate world.

Concerns about the perception that diversity initiatives unfairly prioritize certain candidates over others have become more prevalent. Some might suggest this controversy is based in the lack of awareness that the purpose of affirmative action, as stated by the US Department of Labor’s Office of Federal Contract Compliance Programs, is “to ensure equal employment opportunities for applicants and employees” which highlights that these efforts do not equate to the candidate selected but rather creating a level playing field that results in the most qualified candidate being hired. “It is based on the premise that, absent discrimination, over time a contractor’s workforce generally will reflect the demographics of the qualified available workforce in the relevant job market.”

In July 2024, SHRM announced it would be dropping ‘Equity’ from its terminology, opting to lead with ‘Inclusion’ instead. This decision has attracted criticism from DEIB and HR professionals who believe it shifts the focus away from addressing systemic inequalities and individual barriers.

Despite these challenges, DEIB remains a steadfast priority for most Fortune 500 organizations.

As Kathi Enderes, Senior Vice President of Research at the Josh Bersin Company, notes, “From research that we conducted earlier this year, we identified that 92% of companies haven’t reduced their DEIB spend, even though hiring for DEIB roles went down.”

While the need for dedicated DEIB roles remains, organizations may be shifting their focus towards integrating DEIB principles into all aspects of their operations, rather than relying solely on specialized positions. This indicates a continued commitment to DEIB, even if the approach is evolving, highlighting its enduring importance in the corporate world.

Compliant Diversity Sourcing and Outreach

To continue prioritizing DEIB while mitigating compliance risks, businesses can take several practical steps:

  • Inclusive Recruitment: Ensure job adverts emphasize that everyone is welcome to apply, while encouraging individuals with underrepresented protected characteristics via strategic and effective outreach and recruitment strategies.
  • Communicate Commitment: Clearly communicate the organization’s commitment to DEIB and promote transparency on progress.
  • Engage Partnerships: Collaborate with Employee Resource Groups (ERGs), educational institutions (including Historically Black Colleges and Universities and Hispanic-Serving Institutions), and DEIB-focused community organizations to tap into diverse talent pools.

Client success stories where these strategies have positively impacted DEIB efforts can serve as powerful examples of progress. For instance, organizations that have partnered with community-based organizations and educational institutions have seen significant improvements in their diversity metrics and overall business performance.

DEIB remains a priority

Celine Raffray, VP, Talent Acquisition at Bristol Myers Squibb (BMS), emphasizes that DEIB is crucial to business success. She reaffirmed the company’s strong commitment to inclusion and diversity, underscoring its strategic importance in achieving meaningful outcomes for stakeholders. By integrating DEIB into the broader business strategy, organizations can demonstrate a genuine commitment to creating a more equitable and inclusive workplace while also advancing business objectives.

As Raffray noted, “At BMS, we are guided by a single vision — transforming patients’ lives through science. To fully realize this vision, we truly rely on the strength of our rich history and long-standing commitment to inclusion and diversity to ensure that we can drive meaningful impact and outcomes for our patients and communities, our colleagues, and our business and industry. Understanding and addressing the needs of patients from diverse communities is central to our strategic business priorities, ensuring we can achieve meaningful outcomes for all. Our evolved Global Inclusion & Diversity strategy and priorities are the first steps on that path forward and remains key now, more than ever.”

Raffray’s insights highlight the critical role of DEIB in driving business results. The following benefits further illustrate how DEIB positively impacts organizations:

  • Business Performance: Diverse teams consistently outperform homogenous teams in various areas, including innovation, decision-making, and market expansion.
  • Talent Acquisition: A strong DEIB reputation can attract and retain top talent, especially in a competitive job market.
  • Customer Engagement: Diverse teams are better positioned to understand and meet the needs of diverse customer bases, enhancing satisfaction and loyalty.
  • Alignment with Customer Base: A diverse workforce mirrors the customers companies serve, improving the ability to meet their needs and driving better customer outcomes.
  • Employee Engagement and Retention: Inclusive workplaces where employees feel valued and respected see higher engagement and lower attrition, reducing recruitment costs and fostering long-term loyalty.
  • Risk Mitigation and Reputation: Prioritizing DEIB enhances a company’s reputation for social responsibility and helps mitigate risks associated with bias and discrimination.
  • Competitive Advantage: By fostering inclusivity, companies can enhance workplace culture and improve business performance, driving long-term success.

Conclusion

DEIB remains a steadfast priority, as evidenced by consistent strategic focus among our clients. Insights from the Josh Bersin Company further validate this commitment. While certain aspects of diversity may attract heightened scrutiny or debate, companies that recognize DEIB’s strategic value understand the importance of maintaining a comprehensive approach that champions all dimensions of diversity. This focus ensures organizations continue to foster inclusive environments that drive innovation and business success.

Jacqui Welch, CHRO of The New York Times and Non-Executive Director at AMS, emphasizes the critical role of DEIB: “I believe we have an opportunity to re-familiarize ourselves with why so very many years ago we began the work of diversifying our workplaces. The case has long been made that a diverse workforce fosters innovation, enhances decision-making and strengthens the relationship between business and consumers. Creating workplaces where all people can do their best work is a matter of good business sense. This is a moment to reframe DEIB as part and parcel of any high functioning, values driven enterprise. It is an operating principle and a value.”

written by the Catalyst Editorial Board

with contribution from:

Judy Ellis

Head of Diversity, Equity, Inclusion and Belonging Advisory, AMS

Michael Caley-Cook

Senior Manager, Diversity, Equity, Inclusion & Belonging (DEIB) Centre of Excellence, AMS

Kathi Enderes

Senior Vice President of Research, Josh Bersin Company

Paul Modley

Managing Director, Diversity, Equity, Inclusion & Belonging (DEIB) Centre of Excellence, AMS

Jacqui Welch

CHRO at the New York Times and Non-Executive Director, AMS

Celine Raffray

VP, Talent Acquisition, Bristol Myers Squibb

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The strategic outlook for leaders looking to drive value in Talent Acquisition

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Emerging
Trends 2025

for Talent Acquisition

The strategic outlook for leaders looking to drive value in Talent Acquisition

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Introduction from our CEO

Talent Acquisition Trend #1

Implementing skills-based approaches to hiring and mobility

TA leaders state a growing priority to move ahead on their journeys to becoming skills-based, but JBC research shows that progress is slow. Only 12% of companies work on a business-aligned skills strategy and only 20% of companies use skills insights for hiring.

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Talent Acquisition Trend #2

Redesigning the TA tech stack with AI at the forefront

AI and enhanced tech capabilities are prompting TA to shift its technology approach from “stack” to “ecosystem”. 2025 will bring an opportunity for integration and consolidation of the tech ecosystem not only to mitigate excessive spending but also to reduce complexity.

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Talent Acquisition Trend #3

Developing a multifaceted approach to fill talent gaps

A competitive market and talent shortages call for diversified strategies that look beyond external hiring. Some of the recruiting strategies our interviewees are focused on include, refreshing the EVP, prioritizing early careers hiring and building talent pipelines.

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Talent Acquisition Trend #4

Upskilling and elevating the TA function for the future

TA leaders recognize the opportunity and importance of elevating TA in 2025. A key element of this is positioning TA as a “strategic partner”. The TA leaders we interviewed cite collaboration, new skills, and a shifting mindset as necessary to advance the function’s role in the business.

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Gen Z’s DEI expectations

A make-or-break challenge for talent leaders

While DEI programs face regional challenges, particularly in areas where they’ve sparked heightened debate, one trend is clear: emerging professionals globally seek employers committed to creating inclusive and supportive environments. For many in this group, DEI initiatives are more than preferences—they are priorities that shape their career choices and perceptions of employers.

DEI is at a crossroads

Diversity, equity, and inclusion (DEI) encompasses a commitment to fostering workplaces where people of all backgrounds and identities—across age, gender, abilities, race, ethnicity, sexual orientation, socioeconomic and veteran status, and more—feel valued, respected, and empowered to contribute fully. This mission has long guided organizations, but its momentum grew significantly in 2020 after George Floyd’s murder and the widespread calls for racial and social justice that followed. Organizations across sectors committed to attracting qualified talent from all communities and removing biases and artificial barriers that prevented the development and progression of talent from historically underrepresented communities.

Today, however, DEI efforts face new challenges. The mission of DEI is in the crosshairs of some critics, especially in the wake of the 2022 US Supreme Court decision to end Affirmative Action in higher education. This shift has led some organizations to slow or scale back their DEI initiatives, citing legal and political pressures. Indeed, the job site, noted a 23% decline in listings for DEI-related roles between November 2022 and November 2023, with a few high-profile US companies reducing or eliminating DEI positions and altering programs. In response to criticism, a few organizations have even chosen to remove ‘equity’ from their DEI initiatives.

Despite these headwinds, the need for DEI remains as relevant as ever. Emerging professionals, employees, and leaders globally continue to advocate for workplace cultures where all individuals are respected, valued, and supported.

DEI is a deal-breaker for Gen Z

While DEI has faced recent scrutiny, it is far from obsolete. In fact, a key segment of today’s workforce not only values diversity, equity, and inclusion—they expect it. Many employees, particularly from Generation Z, are vocal about refusing to work for organizations that merely pay lip service to these ideals. For them, DEI is seen as a fundamental social responsibility that every employer should uphold.

Gen Z, born between 1997 and 2012, brings high expectations for employers’ commitments, and for many, a lack of genuine DEI initiatives is a deal breaker.

“Gen Z wants to work and contribute to a business that is representative of the communities they may live in or come from along with needing to see others that are potential role models within the organization,” says Dawn Pitchford, Client Director of UK&I for AMS.

“This is not an ‘extra’ for them. It is the norm, and expectations are elevated for many Early Careers programs,“ adds Pitchford.

Employers ignore DEI at their peril

Today’s employers need to listen to Gen Z, warns Rebecca Wettemann. Unlike some earlier generations, the CEO and principal analyst of HR consultancy Valoir says that Gen Z is not afraid to call out leaders in the workplace that, as she puts it, “don’t walk the walk.”

“While they’re more likely to choose a place to work based on DEI and culture, Gen Z are also more likely to be outspoken when employers don’t have clear policies and practices around DEI,” she says.

In fact, DEI is such a priority for younger workers that they will remove themselves from the recruitment process if they cannot see a sincere dedication to DEI. Recruiters who conduct sentiment checks during the application process and beyond have encountered young candidates who share feedback openly on what they experienced during the hiring process and how an organization projects themselves from the start, says AMS’ Pitchford.

“This will be a major factor for them to continue or ultimately accept an offer with an organization that meets their DEI values and ethos,” she says.

According to Lauren Cunningham, Early Careers & Campus Client Director at AMS, she and her team constantly discuss how to bolster DEI especially in the recruiting process, beginning with when candidates first apply for a position. Calling this “part of their job,” she says employers will also need to move beyond race, gender and sexuality when considering candidates for open positions. Young workers and recent university graduates want to see the promotion and development of people with, say, neuro diversity or other forms of mental health challenges and abilities. 

One major push for Cunningham and her AMS team is using DEI to drive social mobility, especially in the UK&I region.

A growing number of young Brits entering the workforce from the UK state secondary school system, for example, often find themselves at the beginning of their careers with poor grades, a lack of skills, and little dedication to work because of a lack of opportunities. According to the UK Education Policy Institute’s Annual Report 2024, by the end of secondary school (high school in the States), disadvantaged pupils were 19.2 months behind their peers. This gap has widened since 2019 (by 1.1 months), reaching its highest level since 2012.

However, compared to the US, there is a firmer focus on social mobility for many UK and Irish employers with a shift from only looking for candidates from ‘Russell Group’ universities. The Russell Group, which includes prestigious institutions like Oxford, Cambridge, and the London School of Economics, has traditionally been the main source of top talent. However, there is now a growing recognition that exceptional candidates can also be found in a broader range of educational institutions, where talent may be overlooked despite its potential.

In response, the UK government has created guidelines for structured apprenticeship-based hiring that’s funded by the government. All UK organizations are given a levy that they must spend on apprentice programs or return the funds back to the government, explains Cunningham. “Everyone has apprenticeship programs that range from age 14 up until they get an apprenticeship with a degree, which is awesome,” she says.

Interestingly, there are fewer programs that take place across the pond, presumably since social mobility is a smaller challenge in the States compared to the UK “I just don’t hear our clients in the US talking about that at all,” says Cunningham.  

 Judy Ellis, SVP of Diversity, Equity, Inclusion and Belonging Advisory at AMS, adds, “In the US, there’s a prevailing belief that economic mobility is inherent, stemming from our lack of a history of formal social classes. The concept of the ‘American Dream’ reinforces the idea that upward mobility is attainable for everyone. However, emerging trends show that this ideal is not always a reality. Research from Pew shows that first-generation college graduates lag behind their peers, despite having the same educational credentials. This disparity suggests that the barriers to mobility are still significant, even though there’s a widespread sentiment that everyone has an equal opportunity to succeed. As a result, social mobility is beginning to emerge as an important part of DEI talent strategy in the US, as organizations begin to recognize the need to address these barriers and create equitable opportunities for all talent.”

How Rolls Royce, Tesco revved up their DEI engines

Right now, recruiters in the UK are paying extra attention to young males who are entering the workforce to give them greater representation and opportunity in the modern workforce. Some social scientists are especially concerned with young white males.

Why? Cunningham says that gender and ethnicity-based hires have leveled off slightly as positions have been filled — and young unemployed males have gained attention recently, especially on the back of the summer riots, with concerns that many feel left behind, having lost faith in the ‘system’. Also, young male job seekers may not have higher degrees and few opportunities to work in the trades than previous generations.

Experts agree that the future is not good for undereducated and unskilled candidates who are ready to enter the workforce. Thankfully, some leading UK employers are continuing in their DEI efforts to further expand the focus of these programs to workers without degrees. Major UK grocer Tesco, for instance, recently unleashed Stronger Start Retail Apprenticeship, a program that targets younger workers who either have poor grades or have dropped out of school with the chance to earn a Level 2 National Standard in Retail degree via help from The Prince’s Trust and Lifetime Training, the grocer’s training provider. In fact, the supermarket chain pledged to hire 2,000 workers over the next two years via an apprentice program with a chance at attaining a well-paying job.

“Our Stronger Starts Retail Apprenticeship is open to all young people but we’re particularly wanting to hear from school leavers who are aged 16-18 years who haven’t managed to obtain any GCSEs, as well as those with qualifications,” Emma Taylor, Tesco’s Chief People Officer said in an interview.

“They will work hard to develop new skills, build their confidence and learn about all aspects of retail. At the end of the program, we hope they will be ready to develop further and become a shift leader at Tesco,” she added.

Meanwhile, British multinational aerospace and defense company, Rolls-Royce sponsors the Social Mobility Undergrad of the Year Award Celebrating Resilience, an annual prize that highlights the achievements of young workers who have thrived in the face of adversity, such as starting their lives in the foster care system. “We hope the Undergraduate of the Year Award for Celebrating Resilience 2024 will celebrate the success of students who have fought against the odds to pursue further education,” according to the award’s website. “We look forward to helping our winner and finalists take the next steps in their careers.”

In the US, there’s a prevailing belief that economic mobility is inherent, stemming from our lack of a history of formal social classes. The concept of the ‘American Dream’ reinforces the idea that upward mobility is attainable for everyone. However, emerging trends show that this ideal is not always a reality. Research from Pew shows that first-generation college graduates lag behind their peers, despite having the same educational credentials. This disparity suggests that the barriers to mobility are still significant, even though there’s a widespread sentiment that everyone has an equal opportunity to succeed. As a result, social mobility is beginning to emerge as an important part of DEI talent strategy in the US, as organizations begin to recognize the need to address these barriers and create equitable opportunities for all talent.

Judy Ellis, SVP of Diversity, Equity, Inclusion and Belonging Advisory, AMS

How TA tech can help propel DEI

Talent acquisition technology can play a role in promoting and achieving their organization’s DEI mandates. These solutions, many offered by AMS along with its array of TA consultation services, can deliver a noticeable benefit when measuring the mix of applicants and how they are progressing throughout the application process. For example, reviewing the stages of a candidate’s hiring journey can highlight where some potential hires may be disadvantaged compared to others, as well as helping employers understand where further engagement or education is required in the form of coaching support.

“Utilizing our AMS coaching platform, clients can target specific DEI segments to serve additional digital content or webinar-based coaching sessions that will assist candidates from disadvantaged groups to perform on a better, more level playing field,” says Pitchford.

Other forms of TA technology, such as data intelligence, may eventually shift organizations away from tracking headcounts based on diversity demographics. “I went to an interesting early careers conference and a speaker said that in the future, we’ll be absolutely horrified that there were tick boxes for all of these different things,” recalls Cunningham. “But it’s just so ingrained right now, because otherwise there’s no way to track this information.”

Of course, these identifiers are not allowed to be used in hiring decisions as the TA teams cannot view this information. “It’s all hidden, but it’s impossible to know who you are hiring, where, and also if it’s used for good purposes without collecting this information on the application form,” says Cuningham.

In the face of these challenges, will DEI evolve or will it eventually fade away?

One leading industry expert thinks DEI is here to stay because the need for new talent will never disappear.

“Our research shows a continued, ever-strong focus on DEI in hiring and promotion. Despite the backlash on “wokeism” in US politics, employers still have a heavy focus on diversity, particularly because hiring is harder than ever,” says Josh Bersin, Global Industry Analyst and CEO of The Josh Bersin Company. “Budgets for heavy DEI training are being reduced, but DEI focus on all other talent practices remains as high as ever.”

Pitchford is confident that DEI will remain a priority for employers and will eventually settle into ‘business as usual” for nearly all employers. Looking at a more diverse workforce to fill future talent roles will remain a necessity in many sectors due to lack of talent especially in data intelligence, AI, green and other in-demand skills, she says.

“Clients need to embrace DEI as part of their attraction approach now and start to adapt by educating the whole business on the importance of a more diverse workforce,” says Pitchford. “This will help businesses to grow and prosper for the future. A diverse workforce allows employers to draw from the best talent across all backgrounds, driving innovation and enhancing business outcomes.”

If you finding yourself facing the challenges outlined in this paper please reach out to us.

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The strategic outlook for leaders looking to drive value in Talent Acquisition

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Emerging
Trends 2025

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The strategic outlook for leaders looking to drive value in Talent Acquisition

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AMS has combined forces with The Josh Bersin Company, to provide a comprehensive overview of emerging trends in Talent Acquisition for 2025.

The research combines interviews with some of the world’s leading talent acquisition professionals with research and data from the acclaimed AMS and JBC Talent Climate series. It provides actionable insights for leaders looking to drive value through strategic talent acquisition.

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Fair Play: Ethical AI in Talent Acquisition

How to Get AI Ready for a Secure and Efficient Recruitment Process

The buzz around the ever-evolving intelligence and pace of AI has helped it become a pervasive force at work and at play. With its boundless intrigue, AI incites both excitement and unease as individuals and industries alike endeavor to make sense of this groundbreaking technology and choose and use it wisely.

A recent AMS poll found that respondents were most eager for expert advice about the risks and benefits of AI in talent acquisition. While AI is reinventing the hiring process, TA leaders must never lose sight of its potential risks — as the saying goes, “with great power comes great responsibility.” In this guide, we will explore the significance and importance of ethical AI, and how best to mitigate the risks in talent acquisition to ensure responsible and compliant deployment.

Your Ethical AI Journey: An Overview

Practical Steps for TA Leaders

Develop a Comprehensive AI Strategy

Identify where AI will have the most impact and ensure it aligns with your organizational goals and values.

Establish Governance and Accountability

Set up risk assessments, conduct regular audits and create clear policies for ethical AI use.

Upskilling and Change Management

Ensure your TA teams are trained not just in using AI tools but in understanding the ethical and responsible frameworks guiding their use.

Partner with Experts

Work with consultants or third parties to evaluate risks and optimize the integration of AI.

Ethical AI in Talent Acquisition: Its Importance

With its dynamic and complex environment, characterized by numerous critical deadlines, talent acquisition is perfectly suited for AI transformation. In fact, following the debut of ChatGPT in late 2022, forward-thinking TA teams are already using generative AI tools to heighten efficiency, lighten recruiters’ workloads and enhance their abilities. Using AI in TA can lead to many important ethical outcomes, including:

Improved Accessibility: AI can enhance accessibility and grammar on printed and digital materials, that can create a better work environment for individuals with dyslexia, vision and hearing impairments, and physical disabilities via voice-controlled systems and adaptive hardware.

Bias Reduction and Increased Diversity: If trained in an ethical manner, AI can minimize bias by focusing on merit rather than irrelevant demographic factors, such as name, race, gender, ethnicity, appearance and age. Instead, hiring managers can focus on a candidate’s skills, expertise and interaction during live or virtual interviews. When AI is designed and deployed with ethical considerations in mind, it can promote diversity, ensuring fair treatment and creating more inclusive hiring processes.

Enhanced Data Safety and Privacy: Safety protocols like encryption, secure data storage and strict access controls help ensure that employee and candidate data are protected from breaches and misuse. Safe AI tools also help organizations comply with regulations and privacy law, minimizing legal risks.

Increased Accountability: Explainability is a requirement to ensure you are using AI compliantly. Understanding how your AI tool influences candidate selection, evaluation, and hiring recommendations means you can articulate the reasoning or logic behind an AI-enabled decision to candidates, colleagues and other stakeholders. It also ensures the TA professionals have insight into how and why decisions were made, so the AI is not operating in a vacuum.

Informed Decision-Making: With proper implementation and monitoring, AI provides actionable, data-driven insights, enabling recruiters to make more informed hiring decisions. By analyzing trends and performance data, it can help refine and optimize talent acquisition strategies over time.

Task Optimization Enabling Human Impact: By automating time-consuming and repetitive tasks like answering candidate questions or scheduling interviews, ethical AI tools can handle a large volume of tasks and free employers to focus on meaningful human interactions. This can create more transparent and authentic hiring processes and experiences.

Ethical and Responsible AI: The Background

AI can evolve talent acquisition, but improper use poses risk to fairness, trust and legal compliance. Ethical and responsible AI are complementary frameworks to ensure fair, safe and effective deployment of AI. Understanding the meaning behind the way we refer to these topics is a good place to start.

So, what’s the difference between Ethical AI and Responsible AI?

Ethical AI:

Focuses on high-level principles like fairness, non-discrimination, and respect for human rights.

Example: Ensuring that AI models do not disadvantage specific groups based on race, gender, or other protected characteristics.

Responsible AI:

Operationalizes ethical principles through governance, accountability, and compliance with regulations.

Example: Regular AI audits to identify and mitigate biases, ensuring models comply with data protection laws.

“Today’s TA leaders need to be certain that they’re operating within the boundaries of both Ethical AI and Responsible AI when using these tools in the recruitment process. For a successful AI deployment, TA leaders need to surround themselves with a team of experts in process design, change management and upskilling to incorporate new technologies. This will help make sure they avoid common pitfalls that could arise with AI tools.”

Luke Kohlrieser, Head of Technology & Analytics Talent Consulting

Responsible AI: The Global Governance Environment

As AI use continues to rapidly expand into the recruitment process and beyond, it is vital to recognize and address the various safety considerations associated with its use. The sweeping EU AI Act is at the forefront of establishing a comprehensive regulatory framework for AI. With its categorization of AI applications into a four-tier classification system based on risk level, it is setting a precedent for using AI safely.

Unacceptable Risk

This category includes AI systems that pose a clear threat to safety, rights, or livelihoods. These systems are prohibited, along with those that manipulate human behavior.

Examples include systems that manipulate behavior subliminally, exploit vulnerabilities of individuals, categorize people based on sensitive characteristics.

High Risk

These AI systems significantly affect safety or fundamental human rights and require strict compliance measures.

Examples include AI used in recruitment tools, making decisions on promotions, task allocation and performance monitoring. They must undergo rigorous assessments and ensure transparency and accountability.

Limited Risk

AI applications in this category pose minimal risk. While they still require transparency (e.g., informing users they are interacting with AI), the compliance obligations are lighter.

Examples include chatbots or AI-driven customer service tools.

Minimal or No Risk

This category encompasses AI systems that pose little to no risk to people using these solutions.

These systems can operate without regulatory oversight, such as spam filters or AI for basic data processing tasks.

In the absence of federal regulations, the United States is using the EU AI Act as a reference point. Meanwhile, state-level regulations are emerging, such as the Colorado AI Act, which incorporates several principles from the EU AI Act. Additionally, states like California and Illinois may soon implement regulations similar to New York’s Local Law 144, which governs the use of automated employment decision tools (AEDT). Canada is advancing its own AI legislation through the Artificial Intelligence and Data Act (AIDA), and a continued collaboration with industry experts and the public to shape effective regulations.

As the global AI regulatory landscape continues to evolve — and more laws are coming — planning is important. If you set the stage now for your ethical AI roadmap, and conduct the right audits, you will have an easier time responding to the changes that come with laws and data protection standards as new elements are introduced.

Here is a brief list of AMS analysis of recent AI laws:

Who Owns the Risk in an AI Anti-Bias Audit?

Recruiters using AI must still obey civil rights laws: Guidance from the EEOC

EEOC Commissioner: Recruiters must avoid AI recruiting tools that intentionally select candidates based upon their protected characteristics

“The regulatory framework for AI is becoming increasingly fragmented as Governments around the world race to keep up with both anticipated and unanticipated impacts of AI use.  For talent professionals, this means they have to keep abreast of a changing environment from both a legal regulation and an ethical AI use perspective. Against this backdrop, the role of talent teams is being elevated as they work closely with their compliance, governance and legal teams to ensure new guidelines and regulatory frameworks are enforced across geographies.” 

Gordon Bull, Chief Legal, Risk and Compliance Officer

Ethical and Responsible AI: Hiring Process Considerations

Using AI to handle daily tasks for you is helpful in HR, but AI can do much more than manage time-consuming tasks. This technology could enhance fairness in the hiring process by eliminating bias and identifying candidates from diverse backgrounds, who may have been overlooked in a traditional hiring process.

By using AI, TA leaders can ensure that every effort was taken to hire the right person with no regard to their race, gender, religious background and other factors. Instead, AI can focus on hiring the right person for the job.

AI in hiring goes beyond the recruitment process itself and can contribute to culture-building and supporting DEIB initiatives and goals. For example, AI can help create structured and consistent questions for all candidates, thereby reducing inconsistencies in the interview process that might introduce bias. A selection of AI tools can analyze language and patterns in job descriptions, candidate outreach and interview questions that identify and remove bias. This helps TAs avoid terms and phrases that may unintentionally thwart candidates from underrepresented groups seeking employment.

One of the ways you can plan to hire safely is by identifying an ethical AI problem that resonates with you and identify what next to explore:

Select an ethical statement that is relevant to your organization:

“We don’t want to replace human judgement with AI.”

You can:

• Ensure you have done the proper strategic planning to understand how your goals line up with ethical AI safeguards
• Learn how AI safely functions in screening and assessment tools
• Plan for data security with regards to AI usage
• Leverage controlled pilot programs to ensure AI adoption at a manageable pace.

“How do we ensure we don’t run into legislative or compliance issues down the line.”

You can:

• Assess your current state of AI usage and discover any areas that are out of balance with upcoming legislation
• Put the right foundations in place to ensure a smooth execution of AI initiatives
• Leverage upskilling to ensure AI Is aligned properly with your business

“We’re looking to leverage AI for maximum impact, even if its new territory.”

You can:

• Look at your end-to-end process for AI usage. Is it organized in a way that will deliver the transformation you are hoping for while maintaining a regulatory framework?
• Have an advanced understanding of data and insights as it relates to AI
• Look at using AI and automation-assisted branding to scale your brand strategies while maintaining a unique tone of voice.

Staying Ahead: Empower Your Workforce with Ethical AI Skills

To fully leverage AI’s potential to streamline processes, improve decision-making, and enhance candidate experiences, organizations must prioritize ethical AI training for their talent acquisition teams. Training staff who use AI is not only a legal obligation under the AI Act but also a strategic necessity. “Without proper upskilling, teams risk falling behind in a rapidly changing landscape where competitors may gain the upper hand by adopting ethical AI more quickly and effectively,” says Nicola Matson, Head of Technology & Analytics Advisory (UKI & EMEA). “Upskilling isn’t just about learning to use new tools—it’s about fostering a mindset that embraces innovation and ethical considerations,” she adds. “Failure to invest in AI upskilling could leave organizations and their employees at a disadvantage, both in terms of productivity and career growth.”

To stay competitive, companies must recognize that AI is not just a tool—it’s a strategic advantage that must be used responsibly. Preparing your team with the knowledge and skills to work alongside ethical AI ensures that they can confidently navigate the future of talent acquisition and remain at the forefront of industry innovation.

Navigating the Ethical AI Landscape: Get Expert Strategic Guidance

As a talent acquisition leader, AMS has the expertise to help organizations on their AI journey. When a TA team implements an AI tool, they are adopting a capability – but deploying it ethically requires strategic guidance from experts who know how to integrate AI into the hiring process responsibly. “There’s plenty of work and governance to get ready,” says Laurie Padua, Managing Director, Talent Consulting at AMS. “Partnering with an organization like AMS can help you to identify risk and embed ethical AI into your processes and people to facilitate change and drive outcomes safely.” This means creating structure and rules around AI with an expert to establish clear guidelines and protocols, ensuring its responsible use and continual optimization.

“TA leaders know hiring and AMS knows about the cutting-edge innovations that can help them find and retain the right talent for the coming decade. When navigating through uncharted waters, you want someone at the helm who has the experience and expertise to ensure a safe journey.”

Laurie Padua, Managing Director, Talent Consulting, AMS

Talent consulting for AI is crucial to your governance framework and ethical strategy because it ensures the responsible and effective integration of AI technologies within your organization. By working with experienced consultants, you can align AI initiatives with ethical guidelines, minimize risks and maintain transparency in decision-making. Talent consultants help identify the right skills and expertise, promote fairness and ensure compliance with regulations, which is vital for building trust, mitigating bias and fostering accountability as AI becomes increasingly embedded in organizational processes. Ultimately, it strengthens your ability to govern AI use responsibly and ethically.