What's Happening?
H&M Fashion USA, Inc. has introduced an online assessment tool called Maki for the skills-based selection of sales advisor applicants in some of its U.S. stores. This tool utilizes an AI-created avatar to present multiple-choice questions designed by
the H&M hiring team to evaluate candidates' abilities for the role. The assessment calculates a total score based on predefined point values. While the assessment score is a factor, the hiring team reviews the entire application to decide whether to advance a candidate. Completing the assessment is optional, and applicants can request an alternative method if they have difficulties or concerns. H&M states that choosing an alternative method will not affect a candidate's chances of being considered. The company also clarifies that it does not sell information captured in the questionnaire or use personal information to train AI models. Applicant responses are saved in their profile and retained for three years, with access granted to the applicant tracking system provider under contractual prohibition from using it for other purposes. Information collected through cookies, such as IP addresses and device identifiers, is accessible to the hiring team but kept confidential.
Why It's Important?
The adoption of AI-powered assessment tools by a major retailer like H&M signifies a growing trend in U.S. hiring practices, particularly within the retail sector. This shift could streamline the initial screening process, potentially reducing the time and resources spent on traditional application reviews. For job seekers, it introduces a new element to the application process, requiring them to engage with AI technology. The optional nature of the assessment and the provision for alternative methods are crucial for ensuring equitable access and addressing potential concerns about technological barriers or biases. However, the reliance on AI in any part of the hiring process raises questions about fairness, transparency, and the potential for algorithmic bias, even with H&M's assurances about not using personal data for AI training. The impact on diversity and inclusion, a stated priority for H&M Group, will be closely watched as such tools become more prevalent.
What's Next?
H&M will continue to use the Maki assessment tool for sales advisor positions in select U.S. stores, with ongoing evaluation of its effectiveness and fairness. Applicants will have the option to complete the AI-driven assessment or request an alternative method. The company's commitment to providing reasonable accommodations for applicants with disabilities suggests a continued focus on accessibility in its hiring processes. As AI technology evolves, there may be further refinements to the assessment tool and its integration into H&M's recruitment strategy. The broader retail industry may observe H&M's experience with this tool to inform their own adoption of AI in hiring, potentially leading to more widespread use of similar technologies across the U.S. job market. Feedback from applicants and internal reviews will likely play a role in shaping the future of this and similar assessment methods.
Beyond the Headlines
The implementation of AI in hiring, even for entry-level positions, touches upon broader ethical and legal considerations regarding automated decision-making. While H&M emphasizes that Maki is not an automated decision-making tool and that the hiring team reviews the full application, the influence of an AI-generated score on a candidate's progression is undeniable. This raises questions about the 'black box' nature of some AI systems and the potential for subtle biases to be embedded in algorithms, even unintentionally. The retention of applicant data for three years also highlights data privacy concerns, particularly regarding how this information is secured and used over time. As AI becomes more sophisticated, regulatory bodies and civil society groups may increasingly scrutinize such tools to ensure they comply with anti-discrimination laws and promote genuine equity in employment opportunities, rather than inadvertently creating new barriers.
