Ethics, Algorithmic Bias, and Vendor Management

Covering Assessment Criterion 2.3 of FREE02 – People Professional Technologies, this video addresses three interconnected governance challenges that arise as HR functions adopt increasingly sophisticated tools: algorithmic bias in automated decision-making, the ethical governance of AI systems, and the management of third-party technology vendors. The video situates these challenges within the broader context of responsible HR practice, examining how poorly governed technology can produce discriminatory outcomes and erode employee trust even when no deliberate wrongdoing is involved.

The video gives sustained attention to algorithmic bias, including how it originates in historical training data and the specific HR contexts in which it tends to surface — among them recruitment algorithms and absence management systems. It covers the governance measures organisations can apply in response, including pre-implementation impact assessments, demographic monitoring of algorithmic outputs, and the maintenance of human oversight over significant people decisions. Alongside this, the video addresses the controls required for AI tools more broadly, covering internal policy design, approval frameworks for AI platforms, guidelines distinguishing decisions that can be AI-supported from those requiring human judgement, and the role of user training in promoting responsible adoption.

Vendor management receives detailed treatment through the lens of GDPR obligations, with the video covering due diligence practices for assessing prospective suppliers, the contractual requirements for data processing agreements, ongoing monitoring of vendor compliance, and exit planning for the return or deletion of employee data when a supplier relationship concludes. Throughout, the video connects these vendor governance requirements to the organisation's continuing data protection responsibilities, reinforcing that accountability does not transfer to a third party simply because processing is outsourced.