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AI Isn't the Problem. It's the Lack of Rules

By Joseph Zumaeta - Pandapé
COO

STORY INLINE POST

Joseph Zumaeta By Joseph Zumaeta | Country Manager - Fri, 08/15/2025 - 08:30

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Artificial intelligence is no longer a distant promise. It has become an operational reality that is reshaping the world of work at a pace far outstripping regulation. In the face of this rapid technological acceleration, human resources (HR) departments now occupy a strategic position: they must take the lead in developing internal frameworks that ensure the ethical, responsible, and effective adoption of these tools. The risk isn’t AI itself, it’s improvisation.

In less than two years, 76% of HR leaders believe their organizations will lose competitiveness if they don’t adopt AI-driven solutions. This pressure to innovate can be a force for good, provided it comes with a coherent strategy. According to Pandapé’s “Market Research 2025,” 34% of companies in Mexico and Latin America view HR automation and AI adoption as top trends shaping the future of work. The message is clear: there is willingness, but also a pressing need for guidance.

Technology Gaps, Structural Challenges

Still, a structural gap persists. The same report shows that nearly 3 out of 10 organizations in the region lack adequate tools for recruiting talent. This infrastructure shortfall not only limits AI’s full potential, it also leads to inefficient, lengthy selection processes that offer candidates little clarity.

The starting point is recognizing that AI is not meant to replace human judgment but to complement it. Internal AI policies must define guiding principles and practical boundaries, from which data can be used and how privacy is safeguarded, to which decisions require mandatory human oversight. Technology can suggest actions, but it is up to people to give those actions meaning, context, and empathy. Without a clear ethical framework, AI can amplify bias or compromise individual rights.

One of the most common mistakes is adopting technology without first reflecting on its scope. Automating tasks like drafting job descriptions or answering FAQs can boost efficiency. But using algorithms to analyze emotions during interviews or recommend layoffs without human review may lead to unfair or incorrect decisions. The issue is not the tool, it’s the absence of boundaries.

Purpose-Driven Tech: Making AI More Human

This challenge is particularly pressing in countries like Mexico, where phenomena such as recruitment ghosting impact nearly 48% of HR professionals. In response, many companies turn to automation to streamline communication with candidates. While this may save time and improve follow-up, technology should bring people closer together, not dehumanize the process. AI can schedule messages or screen profiles, but it must not replace honest conversations, clear feedback, or the human guidance candidates expect.

A best practice is aligning HR, IT, legal, and compliance teams to audit every tool in use. This isn’t just about regulatory compliance, it’s about protecting the talent experience. A chatbot may answer basic questions, but it should never make final decisions about promotions or terminations. The key lies in well-structured processes rooted in strong ethical principles.

AI policies should also never be static. They must be evaluated regularly, adapted to new use cases, and anticipate emerging risks. This means measuring their impact on fairness, efficiency, and the overall employee experience. Beyond KPIs, companies must listen to their teams, understand how they feel about these changes, and adjust accordingly.

Internal communication is an essential part of this strategy. Clearly explaining how AI is used, which decisions are automated, and which remain human-led helps reduce uncertainty. This level of transparency not only protects a company’s reputation, it builds trust from within. And in today’s job market, where wellbeing, flexibility, and workplace culture are decisive factors, that trust is invaluable.

For example, several global companies have already begun publishing their AI principles as part of their ethics codes. These actions send a clear message to both employees and society at large: innovation should never move forward without direction. Mexico and Latin America must not be left behind in this global conversation.

Strategic Leadership, Long-Term Vision

The next step is to elevate these principles through leadership. AI policies should not be treated as purely technical matters, but as strategic decisions driven at the highest level. Just as companies measure ROI, they must also evaluate how AI affects organizational culture, external reputation, and employee satisfaction.

In conclusion, AI is not a threat to work. It’s a tool with enormous potential, but like any tool, it requires clear guidance, well-defined limits, and a shared purpose. Companies that understand this won’t just adopt AI successfully, they’ll lead the conversation about the future of work.

At this pivotal moment of transformation, those of us leading the change must establish rules that ensure fairness, transparency, and well-being. Because without that foundation, what looks like innovation today could become a reputation crisis tomorrow. Tech ethics is no longer optional. It's strategy.

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Pandapé is the leading HR software in Latin America that optimizes processes to efficiently hire the best talent and facilitate people management, boosting their happiness at work.

 

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