2026 Pub. 3 Issue 2

Mitigating AI Bias in Employee Management Artificial intelligence has become increasingly embedded in hiring, promotion and employee management, thereby heightening legal risks for dealerships. From automated resume screening to video interview tools and performance analytics, AI tools can amplify bias, create disparate impact and expose organizations to regulatory scrutiny. This article covers 10 practical steps you should consider to mitigate bias and manage risk throughout the AI employment lifecycle. 1. VALIDATE BEFORE YOU DEPLOY Before rolling out any AI tool, conduct rigorous pre-deployment testing, including bias and disparate-impact audits across protected groups (e.g., race, sex, age, disability) and job categories. Require vendors to provide documentation of their own testing, accuracy data and bias audit results. Don’t assume a high statistical correlation between a model’s features and job performance means the tool is job-relevant. Always ask if the features logically relate to actual job duties. 2. MONITOR OUTCOMES OVER TIME Bias mitigation is not a one-time event. You should track demographic and performance data after hiring or promoting. If patterns of bias or disparate impact emerge, adjust or retrain the model. Regular post-deployment audits are essential to catch “drift” as new data enters the system. 3. ESTABLISH STRONG GOVERNANCE Implement clear policies for AI use, including documentation of all testing, audits and remediation steps. Maintain records of how decisions are made, which features are used and how human oversight is integrated. This documentation is critical for regulatory compliance and defending decisions if challenged. 4. KNOW YOUR FEATURES AND FILTERS Demand transparency from vendors about which resume factors or data points the model uses and which disqualify candidates. Understand the “disqualifying” features and ensure they are job-related and non-discriminatory. 10 Practical Tips for Louisiana Dealers BY BREA CHILDS, ASSOCIATE; DAVID J. WALTON, AIGP, CIPP/US, PARTNER; AND TIMOTHY SCOTT, PARTNER, FISHER PHILLIPS 10

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