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Discussion Prompts for Follow-Up Peer Responses:

  • In replying to peers, please review their initial posts and thoroughly discuss what else should be considered for PBP’s successful AI adoption based on your review of their identified trends, recommendation, and implementing action. In your discussion, please do not repeat the content of your initial post. Instead, please use external sources and/or course content to help ensure that the identified peer plan does not fail.



Caleb-

External trends: Having conducted a thorough PESTLE analysis, I have determined that the two trends that could impact Powered by People(PBP) are, Political and Technological.

Political: PBP faces significant potential political challenges in adopting AI due to the rapidly evolving landscape of AI legislation in the United States. States like New York, Colorado, and Illinois have implemented or are considering laws that impose strict requirements on AI usage in HR (Seth Merrill, 2025). These regulations often mandate transparency, bias audits, and employee notifications when AI tools are utilized. The state regulations present a compliance challenge for PBP, which operates globally. The inconsistency in AI laws can lead to increased risks if PBP fails to adhere to state requirements. As there is no federal AI legislation, PBP may be delayed in their AI integration efforts when it inevitably is written. 

Technology: AI is rapidly transforming the nature of work across nearly all industries. Continually evolving, AI tools and resources are also reshaping the way human resources (HR) professionals hire, train, evaluate, develop and support employees in today’s changing labor market. HR professionals expect AI to play an even more prevalent role in their work lives in the coming years (BOFA, 2025). For PBP, embracing AI technology can lead to improved efficiency, and a more data-driven approach to talent acquisition and management. However as mentioned in the Political assessment, PBP will need to remain cautious with its implementation, despite the positive potential effects. 

Recommendation: Based upon the PESTLE analysis, PBP should carefully implement an AI adoption program while rigorously following the pre-existing AI legislation, and allowing flexibility for future AI legislation.

Strategic Implementation:A key component of PBP’s successful AI adoption will be a well-developed AI oversight program. To guide implementation, PBP will use a SWOT analysis, a strategic tool in the form of a matrix with four key categories: strengths, weaknesses, opportunities, and threats (Skotnicka-Zasadzień et al., 2023).

<ol>


  • Use PBP expertise to develop an AI oversight program.


  • Slowly implement AI in compliance with legislation. 


  • Provide staff with AI tools, increasing efficiency. 


  • Monitor results of AI implementation, and external legislation of AI

  • </ol>

    Seth Merrill  (2025, Sep 9) How AI legislation in the US impacts HR teams https://www.sixfifty.com/blog/how-ai-legislation-in-the-us-impacts-hr-teams

    BOFA (2025, Apr) Human resources and AI in the workplace https://business.bofa.com/content/dam/flagship/workplace-benefits/ai-for-hr/ai-for-human-resources.pdf

    Skotnicka-Zasadzień, B., Zasadzień, M., & Grebski, W. (2023). Application of Tows/Swot Analysis as an Element of Strategic Management on the Example of a Manufacturing Company. https://managementpapers.polsl.pl/wp-content/uploads/2024/02/189-Skotnicka-Zasadzie%C5%84-Zasadzie%C5%84-Grebski.pdf

    Second student- Carlyn

    To support Powered by People (PBP) in the strategic integration of Artificial Intelligence (AI), it is essential to consider key external factors using the PESTEL framework. Below are two critical trends—Technological and Legal—that have a direct influence on AI adoption in the global staffing and recruitment industry.

    1. Technological Trend – Rapid Evolution of AI and Machine Learning in Recruitment

    The staffing and recruitment industry is undergoing a major technological shift, driven by AI-powered tools such as resume screening algorithms, chatbots for candidate engagement, and predictive analytics for job matching. According to a 2021 report by LinkedIn, over 67% of recruiters report increased efficiency through AI-driven tools, especially in screening and sourcing candidates (LinkedIn Talent Solutions, 2021).

    Opportunity: For PBP, this presents a significant opportunityto enhance recruitment speed, accuracy, and scalability. AI can streamline the hiring process by automating repetitive tasks like resume screening and initial candidate outreach. This will not only reduce time-to-hire but also allow recruiters to focus more on strategic activities such as building client relationships and ensuring cultural fit.

    However, PBP should carefully select or develop AI tools aligned with their commitment to diverse and compliant hiring, especially in global markets with varied norms and expectations.

    2. Legal Trend – Data Privacy Regulations (e.g., GDPR, CCPA)

    AI systems that handle recruitment data must comply with stringent global privacy regulations. The General Data Protection Regulation (GDPR)in the EU and the California Consumer Privacy Act (CCPA) in the U.S. place strict limits on how companies collect, process, and store personal data.

    Threat: Non-compliance with data privacy laws can result in heavy fines and reputational damage. AI algorithms also risk introducing bias if not carefully monitored, which could violate anti-discrimination laws in hiring practices (West & Allen, 2018). This legal trend is a threat that PBP must strategically mitigate, especially since their operations span multiple legal jurisdictions.

    To remain compliant, PBP must ensure AI tools are transparent, auditable, and explainable, with clear consent processes and data handling policies.

    AI Adoption Recommendation

    Based on the analysis above, I recommend that PBP adopt a phased AI implementation strategythat starts with augmenting—rather than replacing—human recruiters. This allows PBP to:

    • Gradually integrate AI into core processes such as candidate sourcing and screening

    • Maintain human oversight to ensure fairness, inclusivity, and compliance

    • Collect real-time feedback and performance metrics to refine AI usage

    A hybrid approach allows PBP to capitalize on AI's efficiency gains while maintaining the human-centric, expert-driven service that defines their brand.

    Strategic Implementation Action

    key action step to implement this recommendation is to create an internal AI Ethics and Compliance Task Force. This cross-functional team should include experts from HR, legal, IT, and data governance. The Task Force will be responsible for:

    • Vetting and selecting AI vendors or technologies

    • Developing policies for responsible AI use (aligned with GDPR and similar frameworks)

    • Monitoring outcomes for bias, fairness, and transparency

    • Training staff on the use of AI tools and ethical implications

    Establishing this task force ensures that PBP’s AI adoption is strategically aligned with its missionof delivering diverse and compliant global staffing solutions.

    Conclusion

    PBP is in a strong position to leverage AI as a strategic growth enabler in the recruitment industry. By recognizing the technological opportunities and legal threats through PESTEL analysis, adopting a measured, human-augmented AI strategy, and implementing ethical oversight, PBP can enhance performance while safeguarding its core values and legal standing.

    References

    LinkedIn Talent Solutions. (2021). The Future of Recruiting: 2021 Report. https://business.linkedin.com

    West, S. M., & Allen, J. R. (2018). How to regulate artificial intelligence. Brookings Institution. https://www.brookings.edu

    European Union. (2016). General Data Protection Regulation (GDPR). https://gdpr.eu

    California Legislative Information. (2020). California Consumer Privacy Act (CCPA). https://leginfo.legislature.ca.gov

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