Keith Markel, Jessica Lipson and Alana Mildner Smolow Publish Third Article in Reuters Series on AI and Pay Equity

Keith Markel, Jessica L. Lipson and Alana R. Mildner Smolow published a third article in their series for Reuters that explores how artificial intelligence intersects with and impacts employment-related matters. In “AI and Pay Equity: Positives and Pitfalls for Employers to Consider,” the authors discussed AI’s potential for determining compensation packages that will attract the best candidates while navigating corporate budgets, employment laws and other challenging issues. 

The authors explained that employers could use AI tools to analyze large troves of publicly available salary data to pinpoint the compensation levels that are likely to attract and retain the most qualified employees without burdening employees or hiring consultants to access that same information. Further, employers seeking to use AI for compensation decisions should also keep pay equity laws and principles in mind to make sure they are not violating federal, state or local anti-discrimination statutes. An AI-powered algorithm could help employers conduct audits more efficiently to analyze salaries, job descriptions and responsibilities, as well as flag potential pay gaps among workers who perform similar functions.

Employers should continue to pay attention to the legislative landscape regarding the legal use of AI tools in connection with employment practices and be cautious in their approach to using such tools in making compensation-related decisions for their workforces.   

Read the full article here.