Proceptual aims to help make the hiring process a little bit easier for HR professionals.
The Chicago startup focuses on compliance solutions, especially as it pertains to automated hiring systems. Using new technical tools, some powered by machine learning, some powered by artificial intelligence, Proceptual ensures companies navigate regulations around fair hiring practices, said cofounder and CEO John Rood.
The move comes as more employers have turned to automated and AI-assisted employment tools to screen candidates and a new crop of regulations have surfaced at the municipal, state, federal and international levels to coincide with their rise.
Recent regulation passed in Illinois includes one surrounding the use of facial recognition technology in interviews, and Rood expects more regulations to come down the pike in the next year or two.
For example, a new law will go into effect in July, requiring companies that hire in New York City and use a certain set of automated hiring tools to get an independent third-party audit those systems for racial and gender bias.
Proceptual performs the third-party, independent audits of AI-assisted or algorithm-based screening tools that automate any portion of the hiring process and posts the results publicly.
"Our goal is to figure out how do we help companies get compliant with those laws as quickly as possible," said Rood.
A year ago, most people knew what artificial intelligence meant but hadn't used it, according to Rood. Now with ChatGPT and a bunch of competitors in the image-generation and voice-generation space, that's changed.
"Everyone sees the power of these tools now and there's just more familiarity with what's out there," he said. "We're regulatory compliance and our goal is not to tell people what they should be concerned about. Our goal is to help people get on the right side of regulation."
