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AI hiring disclaimer from ADP, Part 1/2

AI hiring disclaimer from ADP, Part 1/2

This is the first time I am seeing a company discloses this information. This is great.

The file is here:

A quick summary (using ChatGPT):

1. Artificial Intelligence Transparency Notice

Summary:
ADP uses AI systems—including generative and traditional machine learning—to provide insights, generate responses, draft job descriptions, and make predictions based on both company-specific and general knowledge. These AI systems are constrained to defined use cases, operate in a non-public environment, and are subject to human oversight to ensure privacy, security, bias mitigation, and result accuracy. AI is not universally deployed to all customers. Employers must validate AI-generated content for accuracy and completeness before use.

Pros:

Cons:

Flaws/Challenges:

Does not address potential AI hallucinations or outdated data risks.

“Rigorous methods” for safeguarding privacy are vaguely described.

No quantitative bias audit details here (only in later sections).

2. Candidate Relevancy Overview & Scoring Method

Summary:
Candidate Relevancy and Profile Relevance tools use AI/ML to match candidate resumes with job descriptions based on education, skills, and experience. They produce three weighted sub-scores aggregated into a final score (1–100) or category (High/Medium/Low). Weights vary by job sector and are empirically derived. The system is meant to be one of many hiring tools, without cut-off scores, and does not use demographic or protected information. Employers see all applications regardless of score.

Pros:

Cons:

Flaws/Challenges:


3. Compliance with NYC Local Law 144

Summary:
The FAQ states ADP does not believe Candidate Relevancy qualifies as an “automated employment decision tool” under NYC’s Local Law 144, as it is not intended to substantially assist or replace human decision-making, is not weighted more than other factors, and does not overrule human conclusions. Employers are instructed to use it only as one source of information, not as the sole hiring criterion.

Pros:

Cons:

Flaws/Challenges:


4. Bias Audit Results – Candidate Relevancy

Summary:
Independent auditors (BLDS, LLC) in April 2024 found no statistically valid evidence of bias by sex, race/ethnicity, or intersectional categories. Data tables show scoring rates and impact ratios, with small-population categories excluded per NYC Ordinance. Adjustments for Simpson’s Paradox were made.

Pros:

Cons:

Flaws/Challenges:


5. Bias Audit Results – Profile Relevance

Summary:
Similar to Candidate Relevancy but displays categorical ratings instead of numeric scores. BLDS audit also found no statistical evidence of bias. Selection rates and impact ratios are provided for “High” and “High or Medium” classifications by demographic group. Small groups (<1% of applicants) excluded from impact ratio calculations.

Pros:

Cons:

Flaws/Challenges:


6. Opt-Out Policy

Summary:
Applicants may opt out of AI scoring for a specific job, in which case their score is listed as “Not Available.” This also occurs if technical issues prevent scoring. All applicants remain visible to recruiters.

Pros:

Cons:

Flaws/Challenges:


In part 2, I am going to dive into those numbers and have some analysis.

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