Publication

AI Tools: A Due Diligence Guide for the recruitment sector

office building windows office building windows

Key Takeaways

AI creates significant opportunities, but organisations remain responsible for managing the risks.

While AI can improve efficiency and decision-making across the recruitment lifecycle, businesses must ensure the technology is used responsibly and complies with legal, ethical and regulatory requirements. Accountability rests with the organisation using the AI, not the software provider.

Effective AI adoption requires robust due diligence and governance.

Before implementing AI tools, recruitment organisations should understand how they operate, what data they use, how decisions are made, and whether appropriate safeguards are in place to address privacy, bias, transparency and compliance risks.

A structured framework helps organisations innovate with confidence

This guide provides a practical due diligence framework developed by recruitment and legal specialists to help recruiters assess AI solutions, reduce legal and reputational risk, and maximise the value of their AI investments through responsible adoption.

Artificial intelligence is transforming the recruitment industry. From candidate sourcing and CV screening to skills matching and workforce analytics, AI tools are helping organisations improve efficiency and make faster hiring decisions. However, alongside these opportunities come important legal, ethical and operational risks that cannot be overlooked.

As AI becomes more deeply embedded in recruitment processes, organisations must ensure they understand how these tools operate, what data they rely on, and whether they comply with evolving ethical, legal, and regulatory requirements. The responsibility for managing these risks ultimately sits with the organisation using the technology, and not the vendor providing it.

This guide has been developed through a collaboration between The Satori Partnership and Squire Patton Boggs. The Satori Partnership brings extensive experience advising recruitment organisations on technology, transformation and operational excellence, while Squire Patton Boggs is a global law firm with deep expertise in data privacy, cybersecurity, technology regulation and AI governance, including in relation to how these areas intersect with labour and employment law.

The guide is co-authored by Jacky Carter, principal at The Satori Partnership, and Tanvi Mehta Krensel, partner in the Data Privacy, Cybersecurity & Digital Assets practice at Squire Patton Boggs. Tanvi regularly advises organisations on privacy compliance, cybersecurity, governance and the legal implications of emerging technologies, helping businesses innovate while managing regulatory risk. Meanwhile, Nicola Martin advises on AI-related contractual protections and governance frameworks, and compliance with antidiscrimination laws, and can support businesses in establishing appropriate human oversight of AI-assisted hiring decisions.

The purpose of this report is to help recruitment organisations ask the right questions when evaluating AI tools. It provides a practical due diligence framework covering transparency, bias and ethics, privacy compliance, candidate obligations and vendor accountability. By taking a structured approach to AI procurement, organisations can better protect themselves from legal, regulatory and reputational risk while maximising the value of their technology investments.

We encourage you to use this guide as a practical resource for making informed decisions about AI adoption. The organisations that will benefit most from AI are those that embrace innovation responsibly, with specific use cases, strong governance and a clear understanding of the risks involved.

We invite you to explore the guidance that follows and use it as a framework for building a more effective, compliant and trustworthy approach to AI in recruitment.


This guide is co-authored in collaboration with the Satori Partnership; published on their website on 14 July 2026, and reposted with permission. The opinions expressed in this update are those of the author(s) and do not necessarily reflect the views of the firm, its clients, or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.