AI Policy Template for HR & Recruiting

HR sits on the most legally sensitive AI use case there is: employment decisions. AI resume screening is already regulated (NYC's Local Law 144, Illinois' AI Video Interview Act, EU AI Act high-risk classification), and the EEOC has made clear that discrimination law applies fully to algorithmic decisions. An HR-aware AI policy distinguishes safe drafting uses from regulated decision uses.

AI risks specific to HR and recruiting firms

• AI resume screening can produce discriminatory outcomes and is regulated in several jurisdictions
• NYC Local Law 144 requires bias audits and notices for automated employment decision tools
• Candidate and employee data in AI tools raises privacy obligations
• AI-drafted performance reviews and termination letters need human ownership

Compliance requirements your policy must address

What a complete hr & recruiting AI policy includes

• Purpose, scope, and who the policy covers (employees, contractors, volunteers)
• Approved AI tools and the process for approving new ones
• Acceptable uses — and the prohibited list, including data that must never enter prompts
• Privacy-law clauses for your jurisdictions (GDPR, EU AI Act, CCPA, PIPEDA) plus EEOC / Employment Law requirements
• Human review and accountability rules for AI output
• Incident reporting, enforcement, and annual review

Frequently asked questions

Can we use AI to screen resumes?

In some places, only with bias audits and notice (NYC); in the EU, it's a high-risk AI system. The generated policy requires legal review before any AI tool influences an employment decision.

Is using ChatGPT to draft a termination letter okay?

Drafting is fine; the decision and the final text must be owned by a human, and no employee personal data should enter unapproved tools. The policy draws that line.

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