Copilot summarized this by noting that leading indicators help forecast trends and market shifts, making them invaluable for strategic planning.
LEADING INDICATORS
WORKFORCE 20NEXT
Emerging Litigation: Leading Indicator or AI Hallucination ?
To start our look at leading indicators in emerging employment litigation, we asked Microsoft Copilot for a definition.
This is the answer it dutifully provided: Leading indicators are metrics that help predict future economic activity and trends. Some key points:- Definition: Leading indicators are measurable data that forecast future economic conditions and business cycle phases.
- Importance: They are essential for decision-making by businesses, investors, and policymakers, as they provide insights into potential economic expansions or recessions.
- Examples: Common leading indicators include the Consumer Confidence Index, Purchasing Managers’ Index (PMI), Durable Goods Orders, Jobless Claims, and the Yield Curve.
- Function: They allow stakeholders to anticipate changes in the economy, helping them make informed decisions.
That makes Judge Rita Lin’s recent ruling in the Derek Mobley v. Workday Inc. case interesting for those of us navigating the push to incorporate Artificial Intelligence (AI) into the world of best practice selection and promotional procedures.
Mr. Mobley brought action against Workday for employment discrimination, and Judge Lin’s decision effectively transformed a single plaintiff claim that Workday’s AI-driven screening algorithm rejected his applications due to factors such as age, race, and disability into collective action litigation – and that makes this lawsuit worthy of keeping a close eye on!
Derek Mobley, an over 40, disabled Black male alleges that he was rejected from over 100 jobs by Workday’s AI-powered hiring platform, despite his qualifications.
In other words, that decision makes this lawsuit a potentially HUGE leading indicator in terms of how we navigate the evolving legal complexities of AI‑powered Talent Management.
The outcome of the pending Workday litigation will not only set precedent, it will also help to define and clarify the legal risks that companies face when deploying this type of AI-driven solution to make employment related decisions.
Like you, APTMetrics is using emerging technology, including Generative AI, in new and exciting ways. And like you, we’re keeping a wary eye on it for good reason!
When a 2023 Harvard Business School report indicated that 99% of Fortune 500 companies were already using AI-based and other automated tools in their selection processes, the ACLU cautioned that these tools “pose an enormous danger of exacerbating existing discrimination in the workplace based on race, sex, disability, and other protected characteristics, despite marketing claims that they are objective and less discriminatory.”
According to a recent review of 2024 Generative AI litigation, “State attorneys general have also shown a willingness to tackle generative AI concerns under state consumer protection laws” even while the Federal government signals the “removal of barriers” to the use of AI via Executive Order 14110.
A Word of Caution From the ACLU
One resume screening tool identified being named Jared and playing high school lacrosse as correlated with being a successful employee.
For over 30 years, APTMetrics has helped CHROs and their Talent Acquisition, Talent Management, Leadership Development and Human Capital Management staff adapt to evolving business strategies and changing market dynamics, respond to legal concerns, and continuously optimize their workforce.
How to best harness new technologies to create processes that support legally-defensible and data-driven hiring and promotion decisions is the primary lens through which we view this emerging issue.
The overwhelming potential of AI is undeniable. However, it is important to balance the use of these incredible technological advancements with the established scientific and legally-defensible practices that lead to powerfully effective screening, selection, and promotional decisions with minimal inherent biases.
Much more to come as this exciting AI journey continues to unfold.
There is clearly much to keep an eye on, so please stay calm and validate!
