SCENARIO II - IV - B Flashcards
Easy to Hire is a U.S.-based company that develops products and services to support its client companies in
hiring top talents best suited to the clients’ specific needs. The company is well known in the U.S. market and
would like to expand into the EU market. The first goal in the EU is to commercialize a recruitment software
called Hire in One Second, a tool designed to support recruitment teams. This software uses artificial intelligence
to support the recruiter in selecting the best applicant for each open position. The recruiter enters the job description for each position within the software, which analyzes it and proposes relevant criteria to assess the
applicant’s resume. Once the recruiter has validated the criteria, the software will process internal and external
data for resumes that match the criteria and score each applicant. The applicants who score below a defined
number will automatically receive a refusal, and the applicants who score above the defined number will move
forward in the recruitment process. Within the system, the recruiter can also decide to review profiles manually
for approval or denial.
Hirenow.Inc is a hiring agency established in several markets in Europe; its headquarters is in Germany and it
has different establishments, including in France, Spain and Italy.
Hirenow.Inc. is specialized in providing short-term hires for hospitals and private clinics that need extra
support for less than six months. Through its website, Hirenow.Inc has collected more than 30,000 resumes
from medical professionals in Europe. The competition for short-term placement in that sector is very high, and
the key distinguishing factor between hiring agencies is the capability to propose the best profile in a very short
time.
To increase its efficiency, Hirenow.Inc would like to use Hire in One Second, proposed by Easy to Hire, to provide
profiles to its clients in the most efficient way and supersede its competitors within the market.
Healthcare.Gmb, a large network of hospitals and private clinics in Germany, is one of their clients and has
used Hirenow.Inc since 2010.
The operations director of Hirenow.Inc requests a meeting with Emma, the AI ethics officer of Hirenow.Inc, to
introduce her to this new project. During the meeting, the operations director explains to Emma that the
system has been set up as follows: the profiles of the applicants who score from 9-15 will have to be reviewed
manually by the recruiter, and the profiles scoring higher than 15 will automatically be contacted to record a
short introduction video.
- Under the EU’s Artificial Intelligence Act, what will be the classification of the AI system Hire in One Second?
A. High risk.
B. Limited risk.
C. Minimal risk.
D. Unacceptable risk.
- The correct answer is A. AI systems intended to be used for recruitment or selection of natural persons,
notably to place targeted job advertisements, and to analyze and filter job applications and evaluate
candidates are classified as high risk under the EU AI Act. The high-risk classification is due to the effect
these actions have on an individual’s employment opportunities and the bias AI could introduce if not
regulated properly.
Body of Knowledge Domain IV, Competency B
- Easy to Hire planned to sell its product directly within the European market and commercialize it through a
distribution network. In that context, who will be the provider of the AI system under the EU AI Act?
A. Healthcare.Gmb.
B. Emma, as the ethics officer.
C. The operations director of Hirenow.Inc.
D. Easy to Hire and its distribution network.
- The correct answer is D. The EU AI Act defines providers and users of AI systems. The provider is the entity
which develops the AI system and makes it available through the market (supplying of an AI system for
distribution or use in the EU). The deployer is the organization or individual that utilizes the AI system for specific purposes. Among other names, deployers may be referred to as importers, distributors and
operators.
Body of Knowledge Domain IV, Competency B
- Among this list of regulations, which is legally binding and requires compliance from both AI users and
providers?
A. The European AI Act.
B. The OECD Guidelines on AI.
C. The Blueprint for an AI Bill of Rights.
D. The Singapore AI Governance Framework.
- The correct answer is A. The only binding instrument within the choices listed is the European AI Act. The
OECD Guidelines on AI from 2019, the Blueprint for an AI Bill of Rights adopted by the White House in 2021
and the Singapore AI Governance Framework of 2019 are guidelines and part of the plethora of frameworks
published in the last few years to aid organizations in building AI ethically.
Body of Knowledge Domain IV, Competency B
