Retain Tool A unless testing establishes that Tool B: covered employment-selection rules, which approach
Use the alternative only if evidence shows reduced disparity and equal job effectiveness.
The question
A U.S. insurer uses AI to help select employees for claims operations. Tool A has strong job performance and shows a disparity; Tool B reduces that disparity but has materially lower job performance. Under U.S. covered employment-selection rules, which approach satisfies the requirement to use a less-discriminatory alternative only when it is equally effective?
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- Choose Tool B because it reduces disparity.Reduced disparity alone does not establish equal job effectiveness.
- Deploy Tool B provisionally, document its lower performance, and revisit the choice after monitoring outcomes.Monitoring may inform later review, but deploying a materially less-effective method does not satisfy the stated equal-effectiveness requirement.
- Choose Tool A because its performance is stronger.Strong performance alone does not establish that no less-discriminatory, equally effective alternative exists.
- Retain Tool A unless testing establishes that Tool B matches its job effectiveness while reducing disparity. ✓The alternative must be shown to reduce discriminatory effects without materially sacrificing job-related effectiveness.
The trap
A less-discriminatory alternative must also be demonstrably equally effective for the job. How to remember it
Use the alternative only if evidence shows reduced disparity and equal job effectiveness.
How many of these would you get right?
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