Biased IRS Predictive Algorithm Is Cautionary Tale for Employers

• Perkins Coie experts analyze bias-related risks of AI tools
• Employers should prioritize risk management, work with counsel

Artificial intelligence tools have potential to lead great advances throughout society. But the tools have downsides, and some—including applicant screening tools, employee monitoring systems, and video interviewing scoring tests—may create bias-related risks.

Employers should take advantage of AI tools’ many benefits, but they must also ensure proper oversight and risk management planning to reduce litigation and regulatory exposure.