AI is changing recruitment: Corporate attorneys need a seat at the table

July 11, 2025

 

Christine Raniga

7 min read

HR and TA professionals are inundated daily with offers and incentives to use the latest Artificial Intelligence (“AI”) recruitment tools, such as: AI chatbots, AI-enhanced resume searches, AI workflow assistants.

“Save time! Reduce manual tasks! Upskill your TA team!”

Using AI in your hiring processes seems like a great idea, but is anyone talking to the lawyers?

It’s in many attorneys’ nature to be cautious and skeptical about “new and shiny” things;  they are tasked with spotting and advising their clients on risk, and helping the client navigate the balance of risks with meeting objectives.  When new innovations come along, corporate attorneys (both in-house and outside counsel) generally advise proceeding with caution.

However, pragmatic, commercially minded attorneys understand the importance of staying ahead in a competitive landscape and finding ways to help their clients achieve critical business objectives.

These contradictory instincts can present real problems for corporate attorneys helping their clients navigate this AI-fueled world, particularly in highly regulated industries such as healthcare and finance, or highly regulated activities like hiring and employment.

Should caution mean hitting the brakes on innovation?

How to Advise Your Clients on Using AI

Although AI is not a completely new technology, the recent developmental leaps made by specialized chipsets, AI-specific developer tools and frameworks, and generative AI capabilities have catapulted AI into nearly every aspect of our digital lives.  One specific area where innovation is rapidly transforming the way businesses operate is talent acquisition. AI is revolutionizing how companies identify, attract, and retain top talent.

Lawyers with any degree of knowledge about employment laws will immediately start mentally calculating damages and thinking of all the things that can go wrong at the first mention of AI in hiring, but we need to recognize that AI is already here in thousands of applications across industries and business processes – and it’s here to stay.

How can lawyers help their business teams use AI effectively, achieve objectives, and do so carefully when so much is changing so fast?

The Business Case for AI in TA

HR and TA teams are requesting access to AI tools, not simply as a means to get their hands on shiny new toys. There are significant competitive and business advantages for companies using AI in hiring and employment processes. The competition for truly great talent is tough in any market. TA teams that can quickly and easily evaluate resumes, prescreen candidates, or set up interviews with AI are reaching great talent faster than companies that are still in their “wait and see” phase. Companies using AI can engage and hire top talent while their competitors are still sorting through resumes and trying to schedule interviews. By adopting AI-driven solutions, companies are improving their recruitment processes, reducing time-to-hire, and enhancing candidate experiences.

Companies have also been able to leverage AI to reduce the need for more manual administrative skills in the TA department, and use that as an opportunity to upskill recruitment talent, creating growth opportunities in their organization. This ability to provide internal growth opportunities creates greater employee loyalty and employment longevity. Companies can also use their internal mobility options as a recruitment tool, attracting more star talent for future openings.

The use of AI by competitors in various departments serves as a strong incentive to explore new AI tools, and many corporate attorneys may be feeling the pressure from their C-suites to evaluate and help implement more AI. Lowering barriers for AI use can help clients stay competitive and innovative, which helps them achieve their objectives. This is definitely one part of the mandate for corporate attorneys, but it’s certainly not the only responsibility they have to their clients – corporate attorneys are ultimately responsible for ensuring that the tools being used are strategically sound, safe for users, and that hiring practices are compliant with applicable laws. So, how can corporate attorneys walk this fine line?

A Word on Recent AI-related legal Developments

Much has been written already about the noteworthy developments in the case Mobley v. Workday, which alleges bias in Workday’s AI-hiring tool, and of course the multitude of lawsuits brought against LLM providers alleging copyright infringement. The specter of litigation and liability is naturally concerning to legal professionals being asked to opine on the use of AI tools, especially in hiring. However, with respect to copyright infringement cases, recent developments in many cases seem to weigh in favor of the LLM developers, granting that their use of (properly obtained) copyrighted materials was “fair use,” giving users of LLMs at least some comfort for the moment that use of LLMs is less likely to lead to an infringement claim.

In the case of Mobley v. Workday, the allegations of bias and discrimination turn on specific factors, a key one of which is the claim that Workday’s AI itself made ultimate decisions about employment eligibility of applicants. That case remains closely watched, but the status of that case does not mean that all use of AI in hiring is inherently problematic. Attorneys and their clients should still consider evaluating tools that augment recruiters’ decision-making capabilities, and keep the human-in the-loop at critical decision-making points. AI should be in place to support recruiters, not replace them. Selecting vendors with visible and demonstrated commitments to fairness, inclusivity, and human decision-making  is critical.

Step 1: Use AI Tools in “Baby Step” Methods to Increase Comfort and Adoption

How can an attorney reconcile the desire to support innovation with the need to proceed with caution? There are three key components to the strategy a corporate attorney should take.  

The first step is to support the introduction of small-scale AI tools across various departments in a gradual manner to increase comfort and adoption. By starting with lower-impact tools and understanding how they were created, how they should be used, and how well they work, corporate attorneys can evaluate real-world cases of AI use on a small, lower risk scale. It should become evident pretty quickly which tools work and which don’t, and which vendors are truly knowledgeable and transparent about their AI development and tools. This can give an attorney a great deal of comfort and an understanding of what “good” or “great” looks like in an AI tool and an AI vendor.

Step 2: Use Regulations as your North Star

Once a few low-risk tools have been evaluated, your business should have a good sense of its direction and strategy regarding useful AI. Attorneys will also gain a lot of knowledge about AI vendors in the process. While most AI vendors these days will have some level of documentation to explain their commitments to ethics in AI and how their tools work, more sophisticated vendors are now going beyond that with third-party audits, public Responsible AI certifications, and deeper technical documentation. These are all necessary materials for any reputable vendor to demonstrate commitments to responsible AI principles.

Corporate attorneys can refer to regulations such as NYC LL 144/2021 and the EU AI Act (as just two examples) to understand the commitments and responsibilities that AI vendors must be prepared for. If you know what is required of them, you will know what you can expect of them.  Reviewing materials from AI vendors regarding their compliance efforts should give corporate attorneys a fair degree of comfort that the vendor treats data appropriately, respects data privacy laws, understands when humans must remain in the loop, and has plans in place to test, treat, and mitigate problems in their AI tools. Any vendor that cannot satisfy these requirements may not have the proper infrastructure in place, and their tool may simply not be ready for your clients just yet.

Step 3: Use Vendors with Clear, Visible Commitments to AI

Once you have seen and reviewed vendor materials, you can then take the next step towards choosing vendors with clear and visible commitments to AI. Vendors with clear and public AI commitments are more likely to invest in continuous improvement and innovation, ensuring that their AI solutions don’t degrade over time. By partnering with responsible, committed vendors in the talent acquisition space, organizations can benefit from new advancements and stay ahead in talent acquisition.

Not to be understated, one of the primary concerns attorneys have with AI is how vendors handle company data – especially when an AI tool may be using the personal data of candidates and employees. It is important to work with vendors who prioritize data security and privacy, and can explain concepts like training data, testing data, and data hygiene practices. By understanding how your company data may be used and protected, you can gain confidence in HR- and TA-oriented AI solutions. Transparent data practices and robust security measures are key to building trust and ensuring the safe use of AI in talent acquisition.

As attorneys, it is your responsibility to help your business grow, reasonably and in compliance with the law.  The fast pace of our modern world has always made that a challenge; AI has suddenly made it a labyrinth. Therefore, it is crucial for corporate attorneys to have a seat at the vendor evaluation table, assist in the careful evaluation of AI vendors, and ensure that your business teams choose those vendors who understand their AI responsibilities, will commit to them, and will operate in a safe and responsible manner. By taking these steps, attorneys can help their businesses navigate the complexities of AI and achieve sustainable growth. The good news is that it’s possible.