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Governments Inch Toward Guardrails on AI-Powered Hiring

As AI dominates recruiting conversations, lawmakers are finally beginning to respond — but regulation remains fragmented and slow.

We analyzed the full transcripts from every session at the recent ERE Recruiting Innovation Summit to see which topics dominated the conversation. AI topped the list by a wide margin.

As AI’s impact is reverberating throughout the talent acquisition profession, lawmakers are starting to catch up. A patchwork of laws are springing up around the world to put safeguards around the development and use of AI.

The European Union has identified employment as a high risk use of AI that can potentially ”negatively affect safety or fundamental rights” for its citizens.

South Korea passed a “Basic Act on the Development of Artificial Intelligence and Establishment of Foundation for Trust” which also identifies hiring decisions as high risk.

The US Federal Government has been very hands off AI, other than promoting it as a new business category with tremendous growth potential for the country. 

However, individual states are beginning to take action. 

Colorado has implemented the Colorado Artificial Intelligence Act, which will go into effect on February 1st, 2026 and is viewed as a template for other US states. The law focuses on algorithmic discrimination in “consequential” decisions. And yes, employment is a consequential decision. 

California has passed numerous AI laws, none of which touch directly on employment. But AB 1018, a bill backed by labor and consumer advocacy groups, has been introduced, and it would impose opt-out rights and independent audits of their AI systems on large organizations using AI tools for hiring. This seems prohibitively complicated, but expect some of these ideas to make it into future legislation.

None of these laws tackle the most apocalyptic fears about AI, and so far, their impact on the industry has been minimal at best. Still, they signal a growing recognition that while AI offers significant benefits to employers, it also carries the potential for serious unintended consequences for job seekers. For talent acquisition leaders, navigating these risks will become an increasingly important part of the job.

David

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Featured Story

Tariffs, Talent, and Turmoil: How Uncertainty is Disrupting Hiring

New Gartner data shows how tariff uncertainty is impacting the labor markets.

I recently spoke with Dion Love, Vice President of Research & Advisory at Gartner, about their latest benchmark report, which sheds light on how HR leaders view the the hiring environment. These leaders are reporting a great deal of uncertainty from shifting U.S. tariff policies, and they expect this to make hiring more difficult in the future. (ERE)

More Recruiting Insights

Lawsuit claims discrimination by Workday’s hiring tech prevented people over 40 from getting hired. Derek Mobley’s suit against Workday was preliminarily allowed to proceed as a collective action suit. In reading the suit, it seems more anecdotal than showing a pervasive pattern of discrimination, but that could change if they get the chance to begin discovery. (CNN)

CEO Who Bragged About Replacing Human Workers With AI Realizes He Made a Terrible Mistake. Klarna, whose decision to replace it’s entire customer service team with AI bots was once seen as a sign of the times, has backed away from that vision, amidst poor financial results and a paused IPO. (Futurism)

Yes, HR Organizations Will (Partially) Be Replaced by AI, And That’s Good. Josh Bersin digs into IBM’s recent announcement that 94% of typical HR questions are now answered by its AI agent, and the role of HR Business Partner is all but eliminated except for very senior leaders. (Josh Bersin)

I’m a LinkedIn Executive. I See the Bottom Rung of the Career Ladder Breaking. Amidst big challenges for the white collar workforce, Aneesh Raman, LinkedIn’s Chief Economic Opportunity Officer, describes entry level jobs are disappearing. (NYT)

Reimagining Recruitment in the AI Era. Hung Lee, longtime friend — and sometimes chess opponent — of ERE, had a great interview with Hari Srinivasan, VP of Product at LinkedIn. Hari showed off LinkedIn Recruiter’s latest AI offerings. (YouTube)

Conferences

ERE Recruiting Innovation Summit

San Diego, CA

November 4-5, 2025

The ERE Recruiting Conference is the premier independent practitioner-led recruiting event that provides actionable insights for talent acquisition professionals. Join fellow colleagues to discover practical ideas, best practices, and case study solutions from leaders who share your toughest recruiting challenges — and have experience overcoming them. (ERE Recruiting Innovation Summit)

Webinars

Tech Demo Tuesday: Discover the Hottest Tools in Recruiting

June 3, 2025 | 2:00 PM EDT | 1 Hour

Join us for Tech Demo Tuesday, a dynamic webinar series designed for recruiting leaders and talent acquisition practitioners eager to explore cutting-edge technology in the recruiting space. Discover the latest sourcing and hiring innovations as top solution providers showcase the tools shaping the future of talent acquisition. (ERE)

The Skills Shift: Redefining How We Hire and Grow Talent

June 4, 2025 | 2:00 PM EDT | 1 Hour

Join us for a discussion on skills-based hiring, featuring practitioners from forward-thinking organizations driving change in how talent is sourced, evaluated, and developed. Our panel will address the challenges of moving beyond traditional role-based requirements, sharing tactics that align hiring practices with real-world skills and capabilities. (ERE)

Calibrating Recruiting Swimlanes: Optimizing the Hiring Workflow for Maximum Efficiency

June 5, 2025 | 2:00 PM EDT | 1 Hour

This webinar will explore how to optimize your recruiting workflow, featuring talent acquisition experts who will break down how to calibrate recruiting roles for clarity, efficiency, and collaboration. Our panel will address the challenges of overlapping responsibilities and misaligned expectations, sharing tactics that enhance role definition and reduce process friction. (ERE)