by Tami Nutt, Vice President of Research & Insights
If the exhibition floor at UNLEASH World had a headline, it would have been AI-powered, AI-enabled, AI-led. Everything was AI-[fill in the blank]. Somewhere along the way, we’ve blurred the lines between automation, AI, generative AI, and agents. It all sounds exciting to executives and investors, but for HR leaders, it can be overwhelming. The rhetoric has outpaced the readiness.
That reality made the boardroom conversation with me and Niles Brandon, Vice President of HR, Fanatics International, “The Future of Compliance: AI & Automated Decision-Making in HR,” all the more timely. HR doesn’t just need new tools; it needs a clear framework for how to use them responsibly.
Why We Wanted to Have This Conversation
Across our Insights@Work research, we see a consistent tension between innovation and accountability. More than half (55%) of HR leaders say they’re already using HR technology primarily to manage compliance and data security. Yet 40% admit they’re not confident their current systems can keep up with emerging regulations, especially those tied to AI and bias. And when asked what keeps them up at night, AI compliance and data accuracy both ranked among the top five challenges for 2025.
Boards and CEOs want to accelerate AI adoption. HR, meanwhile, is expected to ensure that adoption stays ethical, explainable, and defensible. CHROs know they should have the answers, but many don’t have the internal partners or resources to get them.
That’s exactly why we designed this session: to create space for open, practical discussion among peers about how to govern AI in a way that supports innovation instead of slowing it down.
From “No” to “Yes, And”
A recurring question from the group was: How do we control experimentation while maintaining privacy, security, and process continuity?
The answer starts with shifting HR’s mindset from “No” to “Yes, and...”
Yes, innovation is important, and HR must also be part of ensuring it’s done responsibly.
That balance gives HR a seat at the table early, allowing leaders to raise concerns, ask informed questions, and help design ethical implementation before systems go live. Saying “Yes, and” keeps HR from being the compliance police and positions it as a strategic partner in innovation.
Building Governance That Works
Participants discussed whether AI oversight should be company-wide or HR-specific. The consensus was both.
- Company-wide governance should define ethical principles, standards, and accountability that align with organizational strategy and values.
- HR-specific governance should translate those principles into policies, data practices, and workflows that make sense for how people are actually managed.
HR doesn’t need to start from scratch. Reviewing existing policies (privacy, data use, communication, and vendor management) through an AI lens helps create practical guardrails without adding unnecessary complexity.
Asking Better Questions About Data
Data transparency surfaced as one of the biggest challenges. As AI-driven tools multiply, HR must be confident about what happens to company and employee data.
The group aligned around a simple but powerful approach: ask better questions.
- What data is used to train this AI?
- What data stays internal, and what’s shared externally?
- How does the vendor use our data?
- Is the data aggregated or identifiable?
These questions don’t require deep technical expertise, just consistency. Asking them across every pilot, procurement, and partnership helps build transparency and trust.
Compliance as the Seat Belt, Not the Brakes
One analogy that resonated: AI compliance is the seat belt, not the brakes.
Before cars had seat belts and airbags, speed limits were lower to keep people safe. Once those safety features were in place, we could move faster - safely.
Compliance serves the same role for AI. It doesn’t slow innovation; it enables it. It’s what gives leaders and employees the confidence to move forward responsibly, knowing systems are fair, explainable, and defensible.
The Takeaway
AI is transforming HR, but transformation doesn’t have to mean chaos. When compliance is integrated into the process from the start, it becomes a foundation for trust, not a barrier to progress.
At UNLEASH World, amidst all the AI hype, this session reinforced a critical truth: the future of AI in HR isn’t just about smarter systems. It’s about trusted systems, built with transparency, fairness, and human accountability at the core.
