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Human-in-the-Loop AI in HR Decision-Making: Insights from Big 4 AI Governance Reports

  1. Laxmee Vachher School of Management, Babu Banarasi Das University, Lucknow
  2. Shyamali Dubey School of Management, Babu Banarasi Das University, Lucknow

Abstract

The integration of artificial intelligence (AI) in human resource (HR) decision-making has transformed recruitment, performance evaluations, and talent management. However, biases embedded in AI-driven HR systems present significant ethical and operational challenges. Human-in-the-Loop (HITL) AI offers a hybrid approach that combines AI efficiency with human oversight to enhance fairness and accountability. This paper systematically analyses HITL AI in HR decision-making using qualitative analysis of AI governance reports from Big 4 consulting firms. Findings indicate that HITL AI enhances fairness and compliance in HR decisions but faces challenges in scalability, workforce acceptance, and regulatory complexity. The study provides insights into governance frameworks and best practices for balancing AI efficiency with human oversight. Additionally, this paper builds upon prior research on AI bias in HR analytics by extending the discussion towards practical implementations of HITL frameworks and assessing their effectiveness through industry insights.

Keywords

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