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HR’s Role in Understanding and Mitigating AI Bias – ReadWrite

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HR’s Role in Understanding and Mitigating AI Bias - ReadWrite


The benefits provided by AI and machine learning are pretty well established. The technology can help businesses automate processes, gain insight through data analysis, and engage with customers and employees. And it can help them satisfy ever-changing market demands, streamline operational costs, and remain competitive in an increasingly fast-paced digital world.

HR’s Role in Understanding and Mitigating AI Bias

Today many major cloud providers even offer AI features within their service packages, democratizing the technology for businesses that might otherwise struggle to afford expensive in-house AI engineers and data scientists.

For HR teams, the value of AI is undeniably clear. When a single job listing results in hundreds or even thousands of applicants, manually reviewing each résumé is a monumental and often unrealistic task. By leveraging AI and machine learning technologies, HR teams gain the ability to evaluate applicants at scale and make hiring recommendations far more efficient.

The ramifications of AI-induced bias in HR are significant     

While AI offers fairly obvious benefits for HR groups, it also introduces pretty serious challenges and potential pitfalls. With any AI system, one of the most difficult (yet critical) aspects you must address head-on is ensuring that it’s free of bias.

This is particularly crucial for AI systems for HR, as any AI-induced bias can result in companies discriminating against qualified candidates — often unknowingly.

Remember when Amazon had to scrap its AI system for screening résumés several years ago because it penalized women applicants? It’s a perfect — albeit unfortunate  — example of the power of training data. At the time, the majority of Amazon’s employees were men, so the algorithm powering the AI system, trained on the company’s own data, was associating successful applications with male-oriented words.

In doing so, well-qualified women candidates were simply overlooked by the model. The lesson: If the data used to train your AI models is biased, then the deployed AI system will also be biased. And it’ll continue to reinforce that bias indefinitely.

Both outsourced AI systems and company cultures require a closer look

In Amazon’s case, the AI system for screening résumés was built in-house and trained with data from the company’s own job applicants. But most companies don’t have the resources to build internal AI systems for their HR departments. So HR teams are increasingly outsourcing that work to providers like Workday or Google Cloud. Unfortunately, too often, they’re outsourcing their due diligence as well.

It’s more important than ever that HR teams acknowledge the enormous responsibility that comes with outsourcing any AI implementation. Don’t just blindly accept and implement your AI provider’s models. You and your teams need to review the systems repeatedly to ensure they aren’t biased. You need to constantly be asking:

  • What data sources (or combination of data sources) are being used to train the models?
  • What specific factors does the model use to make its decisions?
  • Are the results being produced satisfactory, or is something askew? Does the system need to be temporarily shut down and reevaluated?

It’s so essential to carefully review training data, particularly within outsourced AI systems. But it’s not the only requirement for mitigating bias—biased data originates from biased work environments.

So your HR teams have a duty to also evaluate any issues of bias or unfairness within your organization. For example, do men hold more power than women in the company? What questionable conduct has long been considered acceptable? Are employees from underrepresented groups provided every opportunity to succeed?

The diversity, equity, and inclusiveness of your company’s culture are absolutely relevant when incorporating AI, because it drives how AI systems and results will be deployed. Remember, AI doesn’t know it’s biased. That’s up to us to figure out.

Three best practices for leveraging AI fairly and without bias

Ultimately, HR teams need to be able to understand what their AI systems can do and what they can’t. Now, your HR teams don’t have to be technology experts or understand the algorithms powering AI models.

But they do need to know what kinds of biases are reflected in training data, how biases are built into company cultures, and how AI systems perpetuate those biases.

Below are three tactical best practices that can help your HR teams leverage AI technology in a fair and unbiased manner.

  1. Regularly audit the AI system. Whether your systems are built in-house or outsourced to a provider, routinely review the data being collected to train the models and the results being produced. Is the dataset large and varied enough? Does it include information about protected groups, including race and gender? Don’t hesitate to shut down the system to shift course if its results are unsatisfactory.
  2. Understand the data supply chain. When relying on outsourced, off-the-shelf AI systems, recognize that the training data may reflect the vendor’s own biases or the biases of third-party datasets. Keep an eye out.
  3. Use AI to augment, not replace. The capabilities of AI are advancing rapidly, but the reality is that AI still needs to be managed. Because of the risks involved, HR teams should leverage AI to augment their role, not replace it. Humans still need to make any final hiring and HR decisions.

With the help of AI, HR teams can uncover corporate inequities

Your HR teams are in a unique position to leverage AI technology in a fair and unbiased manner because they’re already well versed in systemic issues of bias and inequity.

Recognize the responsibility AI systems require and consistently work to understand how they’re being trained and producing results.

When done correctly, AI will help your HR teams uncover bias rather than perpetuate it, improve the efficiency and efficacy of HR duties—and advance the careers of deserving applicants and valued employees.

Image Credit: rodnae productions; pexels; thank you!

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Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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