Meaning ● AI Ethics in Recruitment within Small and Medium-sized Businesses (SMBs) addresses the responsible and unbiased application of Artificial Intelligence in talent acquisition. This includes mitigating algorithmic bias in screening tools to ensure fair evaluation of candidates from diverse backgrounds, maintaining transparency in AI-driven processes, and safeguarding candidate data privacy in accordance with GDPR and other regulations. ● By implementing ethical AI practices, SMBs can improve their employer brand, comply with legal standards, and build diverse and inclusive teams that drive sustainable growth. In automation contexts, careful planning prevents AI from perpetuating discriminatory practices, thereby protecting against potential legal liabilities and reputational damage that would impact long-term viability and growth. ● Ethical AI also fosters candidate trust, aiding SMBs in attracting top talent in competitive hiring environments. ● Investing in explainable AI can provide better insights into decision-making and help recruiters understand AI’s recommendations, allowing for informed choices and avoiding “black box” situations that hinder accountability.