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Artificial Intelligence in recruitment: opportunities and legal risks for companies.

January 13, 2026

Artificial Intelligence in recruitment: opportunities and legal risks for companies.

Adopting AI in selection processes needs to be a cautious choice. Many problems can arise when using the technology in this way. Understand why.

The adoption of artificial intelligence (AI) in recruitment and selection processes is growing rapidly in Brazil. Companies from different sectors are already using algorithms for resume screening, behavioral profile analysis, and even automated interviews. The promise is increased efficiency, reduced costs, and greater accuracy in hiring. However, this advancement also brings new legal and ethical challenges that cannot be ignored by Human Resources managers and legal directors.

Legal compliance and data protection (LGPD)

From a legal standpoint, the use of AI in recruitment must adhere to constitutional principles, labor laws (CLT), and, above all, the General Data Protection Law (LGPD). The information provided by candidates involves personal and sensitive data, which requires specific and secure handling. This includes obtaining specific consent from candidates, defining retention periods for resumes, creating channels for handling data deletion requests, and appointing a data protection officer (DPO). These measures not only demonstrate legal compliance but also reinforce the company's credibility in the market and among the candidates themselves. Any failure in obtaining consent, in the intended use, or in the transparency of the process can lead to liability for the company, whether for individual or collective damages.

Another critical point is the possibility of algorithmic biases. Although often unintentional, the use of software trained with limited databases can result in indirect discrimination, favoring or excluding candidates based on non-objective criteria. Cases of this type have already been discussed in different countries and are beginning to gain attention in Brazil. In the legal-labor context, discrimination in recruitment can generate lawsuits for damages and administrative sanctions, compromising not only the hiring process but also the institutional image of the organization.

Transparency in the selection process and the duty to inform.

Furthermore, transparency in the selection process must be reinforced. Candidates have the right to know that they are being evaluated by AI systems, what criteria are used, and how their data will be handled. Failure to comply with this duty to inform may be considered a violation of good faith and the principle of transparency stipulated in the LGPD (Brazilian General Data Protection Law). Companies that conceal or fail to adequately explain the use of technology run a greater risk of facing legal and administrative challenges.

Liability of the contracting company (Joint and Several Liability)

Another aspect that deserves attention is joint liability. Outsourcing the recruitment process to consulting firms or digital platforms does not exempt the contracting company from being held responsible for any irregularities. This means that, even if the system used is from a supplier, it is up to the organization to verify that the procedures comply with labor and data protection laws.

Preventive measures and risk mitigation strategies

To reduce risks, the first preventive measure is the development of clear internal policies on the use of AI in recruitment. HR should be instructed to document all stages of the process, maintain records on selection criteria, and prove that no discrimination occurred. It is equally recommended that each AI system undergo periodic audits, assessing whether the algorithms are aligned with equality and non-discrimination practices.

Team training and strategic approach

Training HR and legal teams should also be a priority. It's necessary to train professionals to understand the limitations and risks of using AI, as well as to answer internal and external questions on the subject. By adopting a proactive approach, the company not only avoids litigation but also promotes a fairer, more transparent recruitment environment aligned with legal requirements.

Innovation with legal responsibility.

The use of artificial intelligence in recruitment can represent a significant competitive advantage, provided it is accompanied by legal and ethical responsibility. Companies that neglect these precautions risk facing labor lawsuits, fines for non-compliance with the LGPD (Brazilian General Data Protection Law), and reputational damage that is difficult to repair. Conversely, those that act strategically and proactively strengthen their employer brand and create more efficient and reliable selection processes.

 

Source: VC S/A. Accessed 13/01/26. 

If you have any questions about the topics covered in this publication, please contact any of the lawyers listed below or your usual Mazzucco&Mello contact.

Rafael Mello

+55 11 3090-9195

Israel Carneiro Cruz

+55 11 3090-9195

This communication, which we believe may be of interest to our customers and friends of the company, is intended for general information only. It is not a complete analysis of the matters presented and should not be considered legal advice. In some jurisdictions, this may be considered lawyer advertising. Please see the company's privacy notice for more details.

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