AI Compliance in Recruitment: What HR Tech Leaders Need to Know Now

I recently co-hosted Brainfood live with Hung Lee, diving deep into AI compliance in recruitment with some brilliant minds in the space. I found the conversation incredibly timely - especially since every chat I have with the HR community lately ends with "but what about compliance?"

Let me share the key insights that really stood out to me, and what I think you need to know as we navigate this rapidly changing landscape.

The Compliance Landscape Isn't as Scary as It Seems

First off, if you're feeling overwhelmed by all the AI regulations popping up, you're not alone. Martyn Redstone from the UK explained that while the UK is in a bit of limbo post-Brexit, his advice to clients is simple: follow the EU AI Act as your baseline. It's the most comprehensive framework out there, and if you comply with it, you'll likely be covered elsewhere.

What surprised me was Guru’s perspective that the US and EU approaches are actually converging more than we think. While we often picture the EU as super restrictive and the US as a free for all, Guru pointed out that even with the new US administration, states like California, New York, and even Texas are pushing forward with their own AI regulations. The reality? We're all heading toward similar standards around transparency and responsible AI use.

The Human Element Remains Critical

One thing that really resonated with me was the discussion about "human in the loop" requirements. Steffen from Germany explained that under the EU AI Act, AI can't make final hiring decisions on its own. Initially, this might sound like a roadblock to efficiency, but I see it differently.

As I mentioned during the show, it's really about how we design jobs and workflows. If we thoughtfully design the collaboration between humans and AI, we can move beyond just rubber-stamping AI decisions to actually leveraging both human judgment and AI capabilities effectively.

The key takeaway? Don't view these requirements as limitations - see them as opportunities to reimagine how we work with AI, and how we keep Humans in the Loop.

Watch Out for These Red Flags

The panel highlighted several concerning trends in AI recruitment tools:

1. Video AI Analysis: Guru raised valid concerns about AI that analyzes facial expressions, body language, or voice pitch during video interviews. The problem isn't just the creepy factor - it's that these tools often can't explain what correlations they're using to make decisions.
   
   
2. LLM-based Screening: Martin was particularly vocal about startups using large language models (like ChatGPT) for candidate screening without proper explainability. If your vendor's idea of transparency is "good prompting," that's a red flag.
   
   
3. Social Scoring: This was a big no-no in the EU AI Act. Any AI that scores candidates based on behavior, personal characteristics, or socioeconomic status is heading for trouble.
   
   

The Innovation Opportunity

What got me really excited was the discussion about reimagining recruitment rather than just automating existing processes. Guru shared an example from his Capital One days where they built AI simulators to assess candidates' problem-solving skills in real scenarios. This isn't just replacing human screening - it's doing something humans struggle with: objectively assessing skills at scale.

Nina from x0pa made an excellent point about skills-based hiring. AI can identify complementary skills that keyword searches miss. Her example was: if a job requires 15 years as a "data scientist," traditional screening would reject candidates who have the skills but predate the job title. AI can recognize that someone with statistics and modeling experience plus 5 years as a data scientist might be perfect for the role.

Practical Steps for HR Leaders

Based on the discussion, here's what I recommend:

1. Start with the EU AI Act: Even if you're not in Europe, use it as your compliance baseline. It's comprehensive and will likely keep you safe as other regulations emerge.
   
   
2. Demand Transparency: When evaluating AI tools, ask vendors to explain exactly how decisions are made. If they can't, walk away.
   
   
3. Think Beyond Automation: Don't just automate existing processes. Consider how AI can help you do things that weren't possible before, like skills-based assessment at scale.
   
   
4. Document Everything: Keep records of your AI usage, decision-making processes, and how you're ensuring fairness. This will be crucial for compliance.
   
   
5. Stay Informed: The landscape is changing quarterly. As Hung suggested, we should have a quarterly session on this and I am here for it.
   
   

Looking Ahead

Andrew made a point that really stuck with me about workforce planning. We're moving toward more flexible workforce models with fractional workers and AI agents. This isn't just about compliance - it's about fundamentally rethinking how we build and manage teams.

The good news? Standards are emerging. Guru mentioned ISO 42001 certification for AI governance, which could become the "GDPR compliance" stamp for AI tools. We're also seeing best practices from other industries (like financial services) that we can adopt.

Final Thoughts

As someone who's been in  transformation and HR for years, I see AI compliance not as a burden but as an opportunity. Yes, we need to be careful and responsible. But within these frameworks, there's incredible potential to make hiring more fair, efficient, and skills-focused than ever before.

The key is to stay informed, ask the right questions, and remember that at the end of the day, we're making decisions that affect people's lives and livelihoods. That human element - the one the EU AI Act is trying to protect - is exactly what makes our work in HR so important.

Keep the conversation going, and remember: we're all figuring this out together. The fact that you're reading this means you're already ahead of the curve!

Looking for HR tech or AI check out Stakkd’s HR tech and AI database.

‍

I don't want to say I told you so. But... I told you so.

In december last year I had a viral post predicting that HR is Dead in 2025. Now 5-ish months later two well known industry experts are saying a similar thing (Kevin Wheeler - read this + Josh Bersin - read this)

So yeah. HR is Dead. Your job WILL change or be replaced by AI.

I don't mean to be dramatic. But you know what I mean. It's coming. It's not going to switch over all of a sudden tomorrow. BUT we ARE moving there slowly and you need to be moving with things. As an individual and as an organisation.

It's important to understand that HR are entering a VERY messy and uncomfortable period. Josh Bersin said it well in his article:

"We[HR] have to find a way to “be productive” while we try to “make the company productive.”

Did you read that? HR are required to re-design themselves and the organisation at the same time. It's a huge ask. It's probably the BIGGEST transformation that any function will need to go through in a business. And the question of HOW pops up again and again in all webinars and community forums. HOW can HR do this? We struggle to keep up as it is, but are also expected to change an entire organisations way of working through digital(ai) transformation (with little help) while "doing more with less".

There are three whooping big issues I see with this whole picture that are going to hurt:

1. HR (mostly) don't have the skills for what's required for the NEW future of HR
2. they don't get any investment to actually DO anything
3. we are building HR the wrong way

So let's dive into each of these.

The HR Skills Gap

We are currently in the early messy phase of HR transformation. Old HR will continue to lose jobs to AI. The roles you have now will not be the same in the future. But there IS a silver lining. There will be "new HR" jobs and that's where you need to focus your upskilling.

You can start by reading the Future of Jobs report 2025 by the World Economic Forum (see image below). It shares some insights into which skills will be more needed. But if you think about it, anything that helps you deliver change and build what is needed (AI enabled processes), then it's probably a safe bet.

Things like: systems thinking, data infrastructure, human/ai process design, agent orchestration (a new one that's gonna come fast), project management, change management, communications, knowledge management....couple that with the empathy and human orientation HR professionals usually have - it's a winner.

You can see in that list there is nothing traditionally HR about those skills. But they are all needed in HR. And yes, expertise in HR topics will still be needed to some extent, but it won't be the core skills needed anymore. So think about where you have gaps and prioritise it.

HR needs Investment

It's all fun and games to say HR need to "transform" but transformation costs money and time and needs certain skills (those things we just talked about). I have NEVER seen a well funded and supported HR function to date in my career. Maybe they exist, but I have not experienced it and I know many of you have not either.

It's a bit silly really. We have founders and CEOs saying they want the benefits of AI but are not willing to do what's necessary....which is to invest. So HR get stuck with more work and more expectations they can't meet.

If you are in this situation, the best place to start is with a strategy and then end with an options paper. You can read this post about how I approach "being more strategic in HR" or reach out if you want support. And you see, doing nothing is always an option. And a lot of the time, the unsaid choice is to "do nothing". But it's not consciously owned, and therefore the consequences are also not.

That's why I say to do an options paper. Make them DECIDE to do nothing. Start making the connections: IF we don't do X, Y will happen (it's actually a good technique to use with toddlers). Make sure the consequences are crystal clear. It makes choosing to DO SOMETHING, way easier. Formulate it in a way that a choice must be made and owned.

And REMEMBER: It is NOT HR's job to save the company from itself.

Again, if you are struggling with this, reach out. I don't bite, but I do charge.

We are building HR the wrong way

As I highlighted earlier. HR needs to re-design themselves. We have an outdated way of working. The OPERATING MODEL is broken. And it will break more when we start adding more tech and AI on top without thinking it through.

We need to build an engine that delivers enablement of organisational success. HR, as well as the organisation, need to be rebuilt with AI in mind. How HR deliver on enablement needs to change. Also let's not forget, for AI to work and be autonomous it needs data. It needs to be informed about how to work in your organisation. There's a lot to change. That's why I say HR is dead, because we need to rebuild it from the ground up. Not add to what we have.

There's a lot to say and do on this topic and I am knee deep in drawing up a future of work operating model framework for HR. I will be sharing it with the Humans in the Loop community first to get feedback and sense check it - please do join. It's a new online community for any HR professionals who are interested to share and learn on HR tech, AI and the whole messy transformation!

What's happening

1. We released some improved design on the Stakkd HR tech database - go check them out!
2. My Pando Horizons: HR Market Trends webinar is on Wednesday - sign up here
3. First of three Talent Crunch Berlin (TC) sessions with Andreea Lungulescu - sign up here
4. Co hosting TWO(!!) Brainfood Live sessions with Hung Lee: AI Regulations in TA & HR: 2025 Q2 Update and Transitioning to CV Free Hiring
5. I have a Beehiiv newsletter too, where I share other interesting stuff - sign up :)

Top 3 Trending products in the last 2 weeks on Stakkd

1. Humaans: learn more here
2. Mega HR: learn more here
3. Avery: learn more here

End Notes

I am starting to really notice that I miss being in the action. As a founder I talk about about HR, AI and tech. But I don't get to actually get to DO any of it anymore. I'm thinking about adding some fractional and consulting options for organisation that need support to transform their HR - wdyt?

I'd also love to meet in person if any of you are in Berlin then send me a message.

See you on the feed

Jess

Everyone is talking about being “data driven” in HR. But few teams are actually doing it. Successful businesses understand their data. They get insights to make decisions. And they do it quickly. It’s no different for HR. It is more important than ever for HR to think strategically and get the data they need to support the business.

Yet, most organizations are still operating with fragmented HR systems, outdated spreadsheets, and guesswork. But don’t worry, there is SO much tech out there to help us.

At Stakkd we see a lot of tech, and one of our partners, peopleIX, kindly let us behind the scenes to see just how easy it is for HR to become data driven.

We know that most HR teams are running blind. They’re drowning in HR data but also struggling to make sense of it. They rely on intuition instead of insights. And they wait until it’s too late. Then top talent walks out the door, absenteeism spikes, or diversity efforts fall flat.

This isn’t just inefficient; it’s costing companies millions.

That’s why HR needs to get fast at data processing and so you can see insights and make decisions quickly. peopleIX does this. Having a system like this takes away the guesswork and enables data driven decisions. Not convinced that you need a People Analytics system like peopleIX? 

Here’s the type of things you can do when you have the data and insights available in real-time.

(No team alone will be able to process the data at the speed a system can.)

1. Tackle Attrition Before It Happens

Attrition costs businesses billions every year, and yet, much of it is avoidable.

Losing employees isn’t just an inconvenience, it’s a financial black hole. Replacing an employee will cost you, not to mention the hit to team morale and productivity.

Tools like peopleIX can predict who’s at risk of leaving and why, using data points like tenure, salary trends, engagement levels, and performance indicators. Without this insight, you’re left reacting too late, spending time and money replacing employees when you could have kept them in the first place.

‍

2. Absenteeism: The Silent Productivity Killer

Absenteeism is more than just a number, it’s an indicator of underlying organizational issues. Whether due to sickness, disengagement, or personal reasons, every unplanned absence affects your team performance. The challenge is to identify and understand the patterns before they lead to significant losses.

Without insight into absenteeism trends, businesses can’t optimize productivity or address root causes. Unchecked absenteeism can snowball, affecting entire teams and departments, ultimately lowering performance and engagement.

But most companies don’t have a clear picture of why absenteeism happens or how to fix it.

You can see below how peopleIX identifies absenteeism trends before they turn into larger issues. 

‍

3. Drive Real Change with DEI Insights

Diversity, Equity, and Inclusion (DEI) isn’t just a buzzword, it is critical for businesses to understand and take action on it.

The numbers speak for themselves:

• Companies with diverse teams see 35% better financial performance.
• Inclusive cultures see 5.4x higher employee retention.
• Employee satisfaction is up to 30% higher when equality is actively promoted.

Yet, most organizations struggle to track and improve DEI efforts effectively.

peopleIX can track DEI metrics easily. The platform provides actionable insights into diversity gaps, pay gaps, inclusivity levels, hidden biases and how they relate to employee satisfaction and retention.

‍

Conclusion: Why would you not invest in a People Analytics system?

The workforce challenges facing today’s organizations are complex and require real-time data to tackle them effectively and reduce the negative cost impact of being too slow to identify issues.

HR has long been seen as an operational function and reactionary. Getting a system like peopleIX helps turn HR into a data-driven business driver - what we are all aiming for!

Let’s start making smarter business decisions, enhance productivity, and drive long-term success. Gone are the days where you need a large people analytics team working for months to get insights. There really are just so many benefits and opportunities for business when data is quickly accessible.

Want to know more about peopleIX? You can find out more on Stakkd or reach out to them directly!

In light of Mark Zuckerberg's recent  "masculine energy" in business, we had a look at a report by Buddies HR that analyzed Y Combinator's most successful startups to understand what truly drives high performance. The data offers an interesting perspective that makes us question whether business really needs more masculine energy. This report highlights the often overlooked importance of feminine qualities in fostering sustainable success.

Let’s dive into the data: 

Based on analysis of 305 top Y Combinator companies valued at $150M+

Top 10 Values in Elite Startups:

1. Customer-centric - 41%
2. Ownership - 32%
3. Bias for action - 25%
4. Growth mindset - 19%
5. Team cohesion - 15%
6. Excellence - 15%
7. Integrity - 13%
8. Humility - 12%
9. Empathy - 12%
10. Innovation - 10%

What These Numbers Really Mean:

Interestingly, the most prevalent value - customer-centricity at 41% - requires traditionally feminine traits like relationship building, emotional intelligence, and deep listening. This suggests that the highest-performing startups already recognize the crucial role of feminine energy in driving business success.

While masculine traits appear prominently as 3 of the top 4:

• Ownership (32%)
• Bias for action (25%)
• Excellence (15%)

The data shows successful companies actively embracing feminine traits:

• Customer-centricity (41%) - the highest-ranked value
• Team cohesion (15%)
• Empathy (12%)
• Humility (12%)

The Hidden Story

The data presents a clear case for increasing feminine energy in business, not masculine.

1. Customer Success Foundation

• The highest-valued trait (customer-centricity) relies heavily on feminine energy
• Relationship-building capabilities directly impact bottom line

2. Sustainable Growth

• Companies valuing both empathy (12%) and excellence (15%) demonstrate that performance and people-focus aren't mutually exclusive
• Team cohesion (15%) suggests sustainable growth requires collaborative environments

3. Innovation Through Integration

• The presence of humility (12%) alongside bias for action (25%) indicates that innovative companies need both decisive action and the ability to listen and adapt

The unfair advantage:

As the startup ecosystem matures, the data suggests that success isn't about amplifying masculine energy - it's about achieving the right balance. Companies that effectively integrate feminine traits like empathy, collaboration, and relationship-building alongside masculine traits like decisiveness and action-orientation appear better positioned for sustainable success.

The question isn't whether we need more masculine energy in business - it's whether we're fully leveraging the power of feminine energy to create more balanced, sustainable, and ultimately successful organizations.

See the full Startup Culture Insights Report 2024 for deeper insights.

Ready to build an engaging culture for your business? Discover how Buddies HR can help you.