Labor | Artificial Intelligence (AI) in Recruitment and Hiring in Brazil: Efficiency with Responsibility

The use of artificial intelligence (AI) is now an established reality in today’s world.

A recent example is the Brazilian Labor Court’s development of its own AI system, exclusively for judges and court officials. This tool aims to enhance intelligent searches within internal databases, improve case law analysis, assist in strategic decision-making, and standardize legal summaries according to the National Justice Council’s (CNJ) guidelines, among other applications.

AI is becoming increasingly present in society, with its adoption growing exponentially across various sectors to streamline workflows and boost operational efficiency. Today, we will discuss the role of AI in recruitment and hiring process, exploring both its opportunities and the precautions that must be taken.
Hiring the right professionals is crucial for a company’s success and longevity. Employees should be not only skilled but also aligned with the organization’s core values. But how can companies identify and attract top talent?

Many businesses have implemented AI-driven recruitment tools to optimize data management, helping to identify candidates whose profiles best match job requirements and employer expectations. AI also significantly reduces the time HR teams spend on initial screening, allowing them to focus on more strategic priorities, such as talent retention.

However, companies must use these technologies responsibly. Key considerations include:

1. Cognitive Biases: It is essential to evaluate job profiles and required competencies carefully. Companies must ensure that AI training data does not reinforce discriminatory biases.

2. Testing: Before implementing AI-driven hiring platforms, companies should conduct various tests to ensure the integrity and reliability of the process.

3. Auditing: Businesses must establish human oversight mechanisms for automated decisions to immediately correct potential system failures and detect discriminatory patterns. Transparency and traceability of hiring decisions are also crucial, as is maintaining proper documentation of selection criteria and procedures.

Brazil’s General Data Protection Law (LGPD – Law 13.709/2018) establishes in Article 20 that individuals have the right to request a review of automated decisions that affect them, including those that define their professional profile. The law also requires data controllers to provide clear and adequate information about the criteria and procedures used in such decisions while safeguarding trade and industrial secrets.

4. Transparency: Candidates must be fully informed about data collection and processing practices, reinforcing the need for legal review of all documents used in the hiring process. Companies utilizing AI should adopt strong security measures, such as data encryption, restricted access, and regular audits to verify compliance and prevent leaks or unauthorized access.

5. Training: HR teams should undergo ongoing training to recognize and mitigate any discriminatory trends in AI-driven hiring processes.

Failing to comply with these guidelines can lead to severe legal consequences and significant damage to a company’s reputation.

Data security must remain a top priority. In 2024, Safernet, in partnership with Brazil’s Federal Prosecutor’s Office, received 68,286 new reports of digital security issues, highlighting the urgent need for stronger safeguards, including rigorous data protection measures in AI-driven hiring.

Additionally, Brazil is currently considering new legislation on AI. Bill 2.338/2023 seeks to regulate AI use in the country, and new legal developments are expected this year.

When used responsibly, AI can be a powerful tool in talent management. By balancing innovation with best practices and regulatory compliance, companies can ensure hiring processes that are not only more efficient but also fair and secure.

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