AI in HR: 4 ways to promote transparency

10.06.2025

AI offers HR departments various benefits, from more efficient recruitment processes to improved performance evaluations. However, the use of AI requires careful attention to transparency, especially in the areas of data processing and decision-making.

Written by Louise De Somere


By being transparent about the use of AI and the processing of data, organisations can gain the trust of their employees and reduce the risk of misuse. Below, we list four ways in which you can increase transparency about the use of AI within HR:

1. Clear communication about the use of AI

AI systems often process sensitive personal data, such as application information, performance evaluations and preferences regarding internal mobility. It is important that employees clearly understand which data are collected, for what purpose this is done and how AI uses this information in the decision-making process.

To ensure this, transparent communication is essential. Provide a clear privacy and AI policy page on the intranet or another internal knowledge source, where employees can easily find information about which data are collected, how long they are retained and which rights they have under GDPR legislation. Clearly indicate where this page can be found, what information it contains and why it is valuable for employees to be aware of it.

In addition, regular updates, such as newsletters, webinars or information sessions, help to keep employees continuously informed about the policy and any changes. In this way, the use of AI within the organisation remains clear, responsible and accessible to everyone.

2. Promoting employee participation

It is important to actively involve employees in policies regarding data collection and use. This can be achieved by establishing an employee advisory group, in which employees can share their views on which data AI may process and for what purposes these data may be used.

In addition, the privacy and AI policy page can be made interactive, allowing employees to ask questions or raise concerns. This participation not only helps ensure transparency, but also ensures that employees feel heard and can promote trust in the use of AI.

3. Implementing explainable AI systems

An important aspect of transparency is making AI decisions understandable and transparent. This means that both HR professionals and employees must understand how AI arrives at a particular judgement. AI systems should therefore be designed not only to provide an outcome, but also to explain which data and criteria were used to arrive at that outcome.

Let us illustrate this with a concrete example. When assessing a candidate or conducting a performance analysis, the system should be able to indicate which factors were taken into account in the decision. It is essential that HR professionals are able to review, adjust and, where necessary, correct AI decisions. This can be done, for example, by giving HR employees the ability to refine the parameters of AI systems, such as recruitment criteria or performance evaluation factors.

4. Human oversight in high-risk AI decisions

For critical HR decisions, such as recruitment, promotions and performance evaluations, it is important that AI always remains under human supervision. AI should never make autonomous decisions on important matters such as hiring or dismissing employees. This is confirmed by the GDPR, which states that such decisions must always remain under human control.

Employees must also understand that AI is merely a tool and does not make final decisions without human intervention. A clear oversight mechanism should be in place through which HR professionals can review and, if necessary, adjust AI decisions. An effective oversight mechanism can be established by creating an AI ethics and oversight committee. This committee safeguards fairness, transparency and the responsible use of AI within HR processes by regularly monitoring and auditing AI systems, with particular attention to critical processes such as recruitment, promotions and performance evaluations.

The committee conducts biannual audits, uses bias detection tools and documents its findings in order to identify and correct discrimination and errors at an early stage.

Furthermore, the committee oversees compliance with regulations such as the GDPR and the EU AI Act and provides training for HR teams to critically assess AI decisions. Regular reporting ensures transparency, so that employees understand how AI decisions are made and how human intervention remains guaranteed.

Conclusion

Transparency is the key to the ethical use of AI within HR processes. By integrating clear communication, employee participation, explainable AI systems and human oversight, AI can be deployed in a responsible manner.

This not only strengthens employees' trust, but also helps to limit the risks of misuse or bias. Ultimately, transparency ensures that AI remains a supporting tool for HR professionals, while maintaining attention to fairness, empathy and people-centred decision-making.

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