The HR Lady® Newsletter - June 2026

Using AI In Hiring? Be Careful!

A new Stanford-led study raises serious concerns about the use of AI in hiring. Researchers analyzed more than 4 million job applications from 3 million applicants across 156 employers and found “clear racial disparities” against Asians and Blacks in how AI-powered screening tools affected applicants. 

The World Economic Forum estimates that more than 90% of employers use automated systems to screen job applicants. But what happens when the systems they use come from a limited set of vendors? The new study found evidence of “algorithmic monoculture,” where the same algorithms led to repeated results and biases across the labor market.

For HR and business leaders, the warning is clear: AI may create efficiency, but it does not remove employer responsibility. If multiple employers rely on the same hiring technology (vendors), biased outcomes can repeat across companies and industries, creating what the researchers call an “algorithmic monoculture.” Employers using AI in recruiting should regularly audit outcomes by job, vendor, and demographic impact, and make sure human oversight remains part of the hiring process.

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The EEO-1 Report Status

The EEO-1 report has been part of employer compliance since 1966, but its future is now uncertain. On May 14, 2026, the EEOC submitted a proposed rule to the Office of Information and Regulatory Affairs that would rescind the EEO-1 reporting requirement, along with several other federal workforce demographic reporting obligations.

For now, this is only a proposal. Nothing has been eliminated, and employers should continue preparing and filing as required unless official guidance says otherwise. This is a good reminder that HR compliance can shift quickly, but proposed changes are not the same as final rules.

FYI: The EEO-1 Component 1 report is a mandatory annual data collection that requires all private sector employers with 100 or more employees, and federal contractors with 50 or more employees meeting certain criteria, to submit workforce demographic data, including data by job category and sex and race or ethnicity, to the EEOC. 

Accountability At The Leadership Level

Recently, I was honored to once again support a Public Housing Authority by leading a 3-Day Leadership Retreat.  This top leadership-level program, which directly impacts the community at large, focused on the future, equipping the attendees to:

• Improve Employee Retention, As Well As Employee Engagement, Through Leadership Behavior (Not HR Programs Alone)
• Navigate And Leverage AI as A Leadership Tool, Not Just a Technology – While Being Aware of the Many Risks
• Strengthen Leadership-Level Decision-Making in a Rapidly Evolving, Multi-Generational Workforce
• Enhance Leadership Communication Strategies That Drive Clarity, Alignment, And Trust Across All Levels
• Address Leadership Legacy: Guiding An Organization Forward While Transitioning Institutional Knowledge

Need customized training for managers and leaders? Let's connect. [email protected] 

Check out my free resources on my downloads page

https://thehrlady.com/downloads/