In December 2023, PayrollOrg encouraged the United Nations (UN) to develop guidelines on artificial intelligence (AI) to help payroll management software developers and users identify potential biases, especially for hidden disparities. PAYO’s comments were in response to the UN Secretary-General convening a multi-stakeholder High-Level Advisory Body on AI to analyze and advance recommendations for the international governance of AI.
PAYO’s Concerns
PAYO has some concerns about disparities because AI systems depend on the data added to the system. If historical data is inaccurate or includes discriminatory information, the AI system could carry that information forward and emphasize bad data through machine learning. For example, if biases are built into an AI system, the system could miscalculate the pay of certain workers or fail to correctly apply law changes to all covered workers. If managers use an algorithm to determine which workers should receive bonuses or pay increases, and the AI system is biased, workers will not be treated fairly and equally.
If an AI system is trained to recognize disparities, we have an opportunity to eliminate discrimination going forward, PAYO said. The question is whether we can recognize biases to train the AI system.
In recommending guidance, PAYO said that the use of AI does not mean that payroll professionals will not be needed, only that their job tasks will change in the direction of data analytics, resulting in more strategic day-to-day payroll operations. PAYO provided the UN with some AI applications that are used or could be used in payroll processes.
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Adam Prinzo is the Assistant Manager of Government Relations for PayrollOrg.
