Indiana’s tech sector is booming, and despite federal actions to eliminate dedicated DEI programs, having a fair and equitable workforce remains essential across the state. With Indianapolis ranking among the top emerging tech hubs, and companies like Salesforce, Infosys, and Eli Lilly embracing AI-driven workforce solutions, the Hoosier state is positioned at the forefront of innovation. But as artificial intelligence (AI) reshapes hiring practices across Indiana, a critical question arises: Can AI truly create equitable hiring, or is there a risk of reinforcing systemic biases?

Indiana’s employers are increasingly leveraging AI to streamline recruitment and hiring processes, aiming to address talent shortages and attract a diverse workforce. AI-driven components of applicant tracking systems, candidate sourcing products, chatbot-driven engagement tools, and predictive analytics platforms have the potential to make hiring more objective, reducing reliance on traditional gatekeeping methods that may favor certain demographics over others.

For instance, tech firms in Indianapolis have begun using AI to assess candidates based on skills and experience rather than factors prone to bias, such as names or educational backgrounds. Companies like UKG and Genesys are incorporating AI into hiring workflows, promoting merit-based recruitment strategies that align with Indiana’s growing emphasis on establishing an equal and accepting workforce.

Despite its potential, AI is not inherently unbiased. Until true machine learning occurs, algorithms are only as good as the data they are trained on. If historical hiring practices have been skewed, AI systems may inadvertently replicate and even amplify these disparities.

In 2018, Amazon famously abandoned its AI-driven hiring tool after discovering it systematically downgraded resumes containing words like "women’s"—a stark reminder that AI, if unchecked, can reinforce historical inequities, having unintended repercussions to workforce inclusion efforts. In Indiana, where women hold only 28% of computing jobs, such AI-driven biases could perpetuate existing disparities in the tech workforce.

Additionally, facial recognition and AI interview assessments—tools gaining traction in Indiana’s hiring processes—have shown lower accuracy rates for candidates of color. As the state pushes forward with AI adoption in hiring, ensuring these technologies are inclusive and equitable must remain a priority.

To ensure AI serves as a force for good in Indiana’s workforce, companies must take proactive measures:

Develop Representative Training Data:

Indiana’s tech leaders should ensure AI models are trained on datasets that reflect the full breadth of the state’s labor market, helping to reduce, reducing inherent biases.

Maintain Human Oversight and Accountability:

AI should augment—not replace—human decision-making. Employers must continuously audit AI-driven hiring tools and adjust for unintended biases.

Adopt Transparency and Ethical AI Standards:

Indiana’s business community should advocate for AI governance frameworks that align with both workforce growth and company objectives.

Leverage Indiana’s Talent Pipeline:

Programs like TechPoint’s Xtern and Ascend Indiana are building an equitable talent pipeline, offering AI-enhanced recruitment solutions to Indiana businesses looking to scale their workforce equitably.

Indiana’s growing tech sector presents an opportunity to set a national precedent for responsible AI use in hiring. If used responsibly, AI can help break down barriers to employment and organically strengthen workforce representation, making it reflective of the surrounding community. However, it may exacerbate hiring disparities and undermine Indiana’s push for inclusive growth if left unchecked.

As AI becomes more deeply embedded in Indiana’s hiring processes, companies must strike a balance between leveraging technology for efficiency and maintaining human oversight for fairness to create a workforce rooted in equal employment opportunities. The future of hiring in Indiana isn’t just about embracing AI—it’s about ensuring AI works for all Hoosiers.

By leading the charge in ethical AI hiring practices, Indiana has the potential to not only bolster its workforce but also set a national standard for tech-driven equitable employment.

Hal Cooper, VP of Product Development, DirectEmployers Association