AI Recruiting Academy › Module 4: Risk, law and fairness
The short answer
Tell candidates, before it happens, where AI is used in your process, what it looks at, whether a person reviews its output, and how to ask for another route or an accommodation. Put it in plain words in the job posting and repeat it at the step where the AI is used.
In New York City, Illinois and, from 2027, California and Colorado, some form of notice is required by law. Everywhere else it is still worth doing: candidates who know how they are being assessed are more likely to trust the result and less likely to challenge it.
Why tell candidates at all?
Because most of them do not trust AI to judge them. Gartner’s 2025 candidate survey found only 26% of job applicants trust AI to evaluate them fairly. Silence makes that worse. A candidate who finds out afterwards that software rejected them is more likely to assume the worst, post about it or file a complaint.
A clear notice also protects you. It shows you knew what the tool did, told people honestly and gave them a way to raise a problem, which is exactly what regulators and courts look for.
What does the law require you to tell them?
| Where | When | What the notice must cover |
|---|---|---|
| New York City | At least 10 business days before the tool is used | That an automated tool is used, the qualifications and characteristics it assesses, and how to request an alternative process or accommodation |
| Illinois video interviews | Before the interview | That AI will analyze the video, how it works and what it evaluates, plus written consent |
| Illinois, all AI use | In the job posting, under draft rules | Product and vendor, decisions affected, data used, a contact, and how to ask for an accommodation |
| California, from 2027 | Before the tool processes their data | How the tool works, what it outputs, how that feeds the decision, and the right to opt out or appeal |
| Colorado, from 2027 | When AI is used, and within 30 days of a rejection | That AI is used, then a plain explanation of its role in a rejection, with a way to correct data and get human review |
| EU and UK | When data is collected | How personal data is used, including any automated decisions and their logic |
The New York City rules are set by the Department of Consumer and Worker Protection; the Illinois draft rules are summarized by Hinshaw; the California rules by Littler. Lesson 3 explains each law in more detail.
What should a good AI notice include?
| Include | Example wording |
|---|---|
| Where AI is used | “We use software to review applications against the requirements listed in this posting.” |
| What it looks at | “It looks at work history, skills and certifications. It does not look at your name, photo or address.” |
| What it does not do | “It does not make the final decision. A recruiter reviews every application it scores.” |
| The tool and vendor | “The tool is [product name] from [vendor].” |
| How to get another route | “If you would prefer a person to review your application, or need an accommodation, email [address].” |
| A contact for questions | “Questions about how we use AI can go to [name or team].” |
| What AI use you accept from them | “You may use AI to help write your resume. Your answers in interviews should be your own.” |
Is there a sample notice I can adapt?
Yes. This version is written for a posting that uses AI screening and an AI note taker. Change it to match what your tools actually do, and have your lawyer check it for your locations.
How we use AI in this hiring process
We use [product name], provided by [vendor], to compare applications with the requirements in this job posting. It looks at your work history, skills and qualifications. It does not use your name, photo, age or address. A recruiter reviews its results and makes every decision about who moves forward.
With your permission, we may use an AI note taker to record and summarize interviews so the interviewer can focus on the conversation. You can say no, and it will not affect your application.
If you would like your application reviewed without AI, or you need an accommodation at any stage, email [address] and we will arrange it. You are welcome to use AI tools to help prepare your application; answers you give in interviews should be your own.
Where and when should the notice appear?
In the job posting. This is the one place every candidate sees before anything happens, and it is where Illinois’ draft rules would require it.
On the application page. A short line with a link to the full notice, next to the submit button.
In interview invitations. Say if the interview is run by an AI interviewer or recorded by a note taker, and ask for consent where needed. Module 3, Lesson 3 covers recording consent.
In your careers page and privacy notice. Keep a fuller version covering every tool, updated when tools change.
After a rejection, where required. Colorado’s law, from 2027, requires a plain explanation of the AI’s role when asked. It is good practice everywhere to be able to give one.
What mistakes should you avoid?
Vague wording. “We may use technology in our hiring process” tells the candidate nothing and likely fails the notice rules above.
Promises the tool cannot keep. Do not say a person reviews every application if some are rejected automatically.
Hiding the opt out. If candidates can ask for an alternative, make it easy: an email address, not a form buried three clicks deep.
Forgetting agency and vendor steps. If a staffing partner or vendor screens for you, their AI use belongs in your notice too.
Letting it go stale. Update the notice whenever you add, switch or change a tool.
Quick answers
Do I have to tell candidates if a recruiter uses ChatGPT to write the job ad?
Generally no. Notice rules are about AI used to evaluate or make decisions about people, not AI used for marketing copy. Illinois’ draft rules say this directly.
Will telling candidates about AI put good people off?
Clear notice with a human option tends to build trust rather than lose it. The candidates most put off are the ones who discover AI use they were not told about.
Can a candidate refuse AI screening?
In New York City they can ask for an alternative process, and California’s rules from 2027 add an opt out or human appeal in many cases. Elsewhere it is your choice, but offering one reduces risk.
Do I need consent or just notice?
Mostly notice. Consent is required for AI analysis of video interviews in Illinois, and for recording in places with all party consent rules.
This lesson explains the law in plain English. It is not legal advice; check your own situation with an employment lawyer.
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Module 4: Risk, law and fairness
- How does bias get into AI hiring tools?
- What is an AI bias audit?
- Which AI hiring laws apply to you?
- What should you tell candidates about AI?
- What candidate data can you put into ChatGPT?