Recently, I asked my AI assistant a very direct question: “Can you tell me why I can’t rely on you to handle all my HR questions around policies, compliance, and employee relations?”
As the COO of Reverb, I’m always looking for ways to streamline and automate, but when it comes to people, our most valuable asset, I also know that human expertise is non-negotiable. The response I received from the AI assistant was incredibly insightful and validated my belief:
“You simply cannot and should not rely on a tool like me for definitive answers on HR policy, legal compliance, or complex employment issues.”
AI can be a great starting point, summarizing general knowledge and common practices, but it has limitations that make it an unreliable source for final, high-stakes decisions.
Why AI Sometimes Gets HR Wrong
Here’s a look at why AI sometimes gets HR wrong, and how you can get better, more reliable information.
1. Lack of Specific Context and Real-Time Data
Labor and employment laws are constantly changing and vary significantly by country, state, and even city.
- Specifics of Company Policies: The AI tool does not have access to your specific company’s employee handbook, internal policies, or collective bargaining agreements unless you’ve built an agent or are using a tool trained to your specific company. If not using a trained tool, a question about “vacation time” is only answered definitively by your official company documentation.
- Jurisdiction Complexity: An AI tool might give you a general federal law answer when a local ordinance is the one that actually applies to you. Plus, its knowledge is based on its training data cutoff, meaning it cannot guarantee 100% real-time accuracy on every new regulation.
2. The Potential for “Hallucination”
Generative AI models are designed to predict the next best word or phrase, not to guarantee factual accuracy. This can lead to “hallucinations,” where the AI confidently gives you a false, fabricated, or non-existent policy or legal citation. Relying on a hallucinated compliance statement in HR could expose your organization to significant legal liability, fines, and employee disputes.
3. Inherent Bias in Training Data
AI models are trained on massive datasets that reflect historical human practices and text. If that data contains historical biases (for example, in hiring, promotions, or pay equity), the AI can replicate and even amplify those biases in its responses. Using AI-generated content for hiring, policy drafting, or performance reviews without human oversight risks perpetuating discriminatory practices, which leads to serious legal and ethical issues.
4. Absence of Human Judgment and Empathy
HR isn’t always black and white; it requires empathy, context, and judgment. Many issues involve complex, sensitive, and emotionally charged situations, such as conflict resolution or performance correction. These situations require the ability to analyze information, interpret policy, and make a judgment using all the context provided. AI treats every question as a technical prompt, unable to gauge the emotional weight or organizational culture that must inform a real-world HR decision.
How to Get Better, More Reliable Information
You should use AI as a research assistant, not the final authority. For reliable HR and compliance information, follow these steps:
| Step | Action | Why It’s Reliable |
| 1. Consult Official Internal Sources | Always start with your organization’s most current, officially approved employee handbook, policy manuals, and intranet documentation. | This is the document that governs your workplace. |
| 2. Consult Your HR Department/Legal Counsel/Outsourced HR Consultant | For clarification on policies, employee-specific issues, or complex compliance questions, reach out to your designated HR contact (internal or external) or the organization’s legal team. | They have the training, context, and experience to provide authoritative answers for your specific organization. |
| 3. Use Government & Professional Sources | Monitor Official Government Websites for labor law and regulation updates (like the U.S. Department of Labor, or your local government equivalent), subscribe to Professional HR Associations (like HRCI or SHRM), or get subscriptions to compliance tools (like SixFifty). | These sources provide the primary, most current, and legally sound text of laws and regulations. |
| 4. Implement Human Oversight | If you use AI to draft a policy or a response, a qualified human HR professional, and or legal counsel, must review and approve the final content. | This ensures accuracy, compliance, and alignment with your organization’s culture and values. |
The main takeaway here is simple: AI can help you understand the concept of the Family and Medical Leave Act (FMLA), but it cannot tell you with legal certainty if a specific employee is eligible for it under your company’s policy and state laws. Always defer to your HR department, or legal counsel, for actionable compliance advice.
If you’re a busy founder, CEO, or HR leader navigating complex people issues, please know that you don’t have to go it alone. Our team of experienced People Operations consultants is here to be your trusted human partner, providing the context, expertise, and empathy you need.
Do you have questions about policies, compliance, or just need a second set of eyes on a tricky situation? Reach out to us [email protected].
