Artificial Intelligence and Pay Information Disclosure: Changing How Pay is Communicated

Abstract

Pay information disclosure (PID), or communicating pay information between and among actors, affects employees, organizations, and societies. Disruptions resulting from artificial intelligence (AI) will also change how pay is communicated. Based on AI, AI and human resources (HR), and PID, as well as anecdotal data involving organizations that are integrating AI in their pay practices, we introduce areas of AI relevant to PID and describe opportunities and challenges. HR should play a critical role in developing employee trust in AI systems by protecting employee privacy, training AI on high-quality data, and ensuring AI algorithms are ethical. AI can transform PID by supporting advanced pay methodologies, reducing barriers to sharing information, and educating employees. However, research needs to be conducted on all of these areas and practitioners should strive to keep an open, but cautious mind about both the benefits and challenges of integrating AI into HR practices.