What Indiana Employers and Employees Should Know About AI in 2025
Artificial intelligence (AI) has transformed how employers recruit and hire. In 2025, many Indiana companies now use AI-driven tools to screen résumés, conduct automated interviews, and even assess personality traits. These systems promise efficiency and objectivity, but they also create legal risks for employers and raise fairness concerns for job seekers.
Why AI in Hiring Matters
Employers often turn to AI to handle large applicant pools. A program can scan hundreds of résumés in seconds, flag keywords, and generate rankings. Automated video interviews can measure tone, facial expressions, and word choice. While convenient, these methods may unintentionally disadvantage certain groups of applicants.
Recent guidance from the Equal Employment Opportunity Commission (EEOC) warns that AI systems must still comply with federal anti-discrimination laws such as Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA). Indiana courts are expected to follow suit as disputes arise.
Risks for Employers
Employers using AI need to understand:
- Bias and disparate impact. If an AI tool disproportionately screens out older workers, applicants with disabilities, or members of a particular race or gender, that could lead to a lawsuit.
- Failure to accommodate. Applicants with disabilities may need alternative application methods. Refusing to offer accommodations can create liability.
- Over-reliance on technology. Courts will scrutinize decisions made solely by algorithms without meaningful human oversight.
Guidance for Employers
Indiana businesses can reduce risk by:
- Auditing AI tools. Regularly test whether hiring software produces biased outcomes.
- Maintaining human review. Use AI to assist, not replace, human decision-makers.
- Updating policies. Clearly state nondiscrimination and accommodation practices in hiring policies.
- Training staff. Ensure HR teams understand the strengths and limits of AI tools.
Rights for Job Seekers
Applicants in Indiana should be aware:
- If you believe you were unfairly rejected by an automated system, you may request accommodations or challenge the process.
- Keep records of application steps, communications, and unusual rejections.
- Consulting with an employment attorney can clarify whether you have a discrimination claim.
Closing Thoughts
AI can improve efficiency, but it doesn’t eliminate an employer’s responsibility to ensure fairness. Indiana workers deserve equal access to job opportunities, and employers need to use these tools carefully. At Goodin Abernathy LLP, I work with both employers and employees to navigate the legal challenges of AI in hiring. If you have concerns about how AI impacted your hiring process, don’t hesitate to reach out.