A New Approach to Measuring AI Bias in Human Resources Functions: Model Risk Management

This scholarship is the first to offer a commonsense, durable, implementable, and traceable solution to the problem of artificial intelligence bias in the human resources industry by proposing the application of the Model Risk Management structure that has proven successful in the financial services industry since the Great Recession of 2008. Such industry regulation will likely reduce the incidents of EEOC charges of violations of Title VII of the Civil Rights Act of 1964 and produce a more stable and safe regulatory environment for firms. Most importantly, the promise of an American workplace with less disparate treatment and disparate impact among employees on protected grounds will be achieved