The growing uses of algorithm-based decision-making in human resources management have drawn considerable attention from different stakeholders. While prior literature mainly focused on stakeholders directly related to HR decisions (e.g., employees), this paper pertained to a third-party observer perspective and investigated how consumers would respond to companies’ adoption of algorithm-based HR decision-making. Through five experimental studies, we showed that the adoption of algorithm-based (vs. human-based) HR decision-making could induce consumers’ unfavorable ethicality inferences of the company (study 1); because implementing a (...) calculative and data-driven approach (i.e. algorithm-based) to make employee-related decisions violates the deontological principles of respectful employee treatment (study 2). However, this effect was attenuated when consumers had high (vs. low) power distance beliefs (study 3); the algorithm served as assistance (vs. replacement) for human decisions (study 4); or the adoption was framed as employee-oriented (vs. company-oriented) motivated (study 5). Our findings suggested that consumers are aversive to algorithm-based HR decision-making because it is deontologically problematic regardless of its decision quality (i.e. accuracy). This paper contributes to the extant understanding of stakeholders’ responses to algorithm-based HR decision-making and consumers’ attitudes toward algorithm users. (shrink)

The use of artificial intelligence (AI) in hiring entails vast ethical challenges. As such, using an ethical lens to study this phenomenon is to better understand whether and how AI matters in hiring. In this paper, we examine whether ethical perceptions of using AI in the hiring process influence individuals’ trust in the organizations that use it. Building on the organizational trust model and the unified theory of acceptance and use of technology, we explore whether ethical perceptions are shaped by (...) individual differences in performance expectancy and social influence and how they, in turn, impact organizational trust. We collected primary data from over 300 individuals who were either active job seekers or who had recent hiring experience to capture perceptions across the full range of hiring methods. Our findings indicate that performance expectancy, but not social influence, impacts the ethical perceptions of AI in hiring, which in turn influence organizational trust. Additional analyses indicate that these findings vary depending on the type of hiring methods AI is used for, as well as on whether participants are job seekers or individuals with hiring experience. Our study offers theoretical and practical implications for ethics in HRM and informs policy implementation about when and how to use AI in hiring methods, especially as it pertains to acting ethically and trustworthily. (shrink)

Although related studies have examined the impact of different images of artificial intelligence products on consumer evaluation, exploring the impact on consumer purchase decisions from the perspective of algorithmic decision autonomy remains under-explored. Based on the self-determination theory, this research discusses the influence of the agent decision-making role played by different AI algorithmic decision autonomy on consumer purchase decisions. The results of the 3 studies indicate that algorithmic decision autonomy has an inverted U-shaped effect on consumer’s purchase decisions, consumer’s self-efficacy (...) mediates the relationship between algorithmic decision autonomy and purchase decisions, and consumer’s power distance moderates the relationship between algorithmic decision autonomy, self-efficacy, and purchase decisions. The research results can provide references for marketers, retailers, algorithm designers, and other parties to formulate algorithm marketing strategies, make AI algorithm decisions better serve consumers, and achieve value co-creation with consumers. (shrink)

More organizations use AI in the hiring process than ever before, yet the perceived ethicality of such processes seems to be mixed. With such variation in our views of AI in hiring, we need to understand how these perceptions impact the organizations that use it. In two studies, we investigate how ethical perceptions of using AI in hiring are related to perceptions of organizational attractiveness and innovativeness. Our findings indicate that ethical perceptions of using AI in hiring are positively related (...) to perceptions of organizational attractiveness, both directly and indirectly via perceptions of organizational innovativeness, with variations depending on the type of hiring method used. For instance, we find that individuals who consider it ethical for organizations to use AI in ways often considered to be intrusive to privacy, such as analyzing social media content for traits and characteristics, view such organizations as both more innovative and attractive. Our findings trigger a timely discussion about the critical role of ethical perceptions of AI in hiring on organizational attractiveness and innovativeness. (shrink)

The recent proliferation of AI scandals led private and public organisations to implement new ethics guidelines, introduce AI ethics boards, and list ethical principles. Nevertheless, some of these efforts remained a façade not backed by any substantive action. Such behaviour made the public question the legitimacy of the AI industry and prompted scholars to accuse the sector of ethicswashing, machinewashing, and ethics trivialisation—criticisms that spilt over to institutional AI ethics boards. To counter this widespread issue, contributions in the literature have (...) proposed fixes that do not consider its systemic character and are based on a top-down, expert-centric governance. To fill this gap, we propose to make use of qualified informed lotteries: a two-step model that transposes the documented benefits of the ancient practice of sortition into the selection of AI ethics boards’ members and combines them with the advantages of a stakeholder-driven, participative, and deliberative bottom-up process typical of Citizens’ Assemblies. The model permits increasing the public’s legitimacy and participation in the decision-making process and its deliverables, curbing the industry’s over-influence and lobbying, and diminishing the instrumentalisation of ethics boards. We suggest that this sortition-based approach may provide a sound base for both public and private organisations in smart societies for constructing a decentralised, bottom-up, participative digital democracy. (shrink)