There is a battle raging, right now, over the soul of artificial intelligence. To understand the fight, you have to understand two terms: Open-source technology and Closed-source technology.
- Open-source technology refers to software or technology that is openly available, allowing users to view, modify, and distribute its source code. It promotes transparency and collaboration as anyone can access and contribute to the development and improvement of the software.
- Closed-source technology, also known as proprietary or commercial software, is developed and distributed with restricted access to its source code. The source code is typically owned by a specific organization or entity, and users are granted licenses to use the software.
Open-source AI models, which let anyone view and manipulate the code, are growing in popularity as startups and giants alike race to compete with market leader ChatGPT. And on the flip side, early movers in generative AI — including OpenAI and Google, are seeking to protect their early-mover advantage by keeping their secret sauce – secret. (FYI: OpenAI, despite its name, uses a closed model for ChatGPT — meaning it’s kept full control and ownership.)
Whichever way the next wave of HR tech tools proliferates, open-source or closed-source (commercial software), it will directly impact what HR tools will be able to do and how much you will be paying for them. I’ll go into more details on that after this very important announcement to my viewers in New York. What I am about to share with you is timely and will impact your HR Tech budget as of July 5, 2023. Everyone else, pay attention, because its only a matter of time before this becomes relevant to you.
New York City has adopted final rules on the use of automated employment decision tools (AEDTs) in hiring, which take effect on July 5, 2023. The AEDT law (also referred to as New York Local Law 144) restricts the use of AEDTs and artificial intelligence (AI) by employers and employment agencies by requiring that such tools be subjected to bias audits and requiring employers and employment agencies to notify employees and job applicants of their use. (FYI: An AEDT is defined as a tool that “substantially assists or replaces” an employer’s discretion in making employment-related decisions.) The law applies to any decision relating to the hiring, promoting, reassigning, evaluating, disciplining, terminating, or setting of salary of an employee, assignment of working hours or shifts, or any other similar decision with respect to an employee or applicant for employment.
All that to say this, if the HR tech tools you are using in NY are not complaint with the AEDT law, you can be penalized as much as $1500.00 per day, for each HR tech tool that is not compliant. Now knowing that, I bet you are wondering, “Are the tools in my tech stack AEDT compliant? I need to know and I need to know now!” No worries, click here to be taken to an online registry of AEDT compliant tools. Simply fill out a form and get an AEDT report today. Get instant peace of mind knowing your HR tech stack is fully compliant or, get a reason to freak out – Act now.
And if you are not in NY, its still a good reason to click the link in the video description because one day, the AEDT law (or something similar) may be coming to your state soon.
But, I digress. Open Source vs closed source aka proprietary software aka commercial software. The debate around using open source technology verses closed technology has been ongoing for years. And typically, when it happens, you hear these points:
On the open source side:
- Open source software is typically developed collaboratively by a community of developers, which can lead to innovation and improvements (Think: Open-source tools – Linux, Android, Apache).
On the closed source side:
- Closed systems can be more optimized for performance, scalability, and security. (Think: Microsoft Windows, Adobe Photoshop, Apple iOS).
And, to be fair, there are more points to consider on both sides of the issue but that’s what I tend to hear the most. When I think of all the other points that come up in the open/close debate, I start to speculate how that debate impacts HR technology. Whether the HR tech trends lean towards open source or whether they lean more closed source, I am confident HR tech customers will likely see the following…
In the case of closed-source development for AI tools, customers can expect..
- Limited customization: Closed source software is not open to modification or enhancement by users, which means that organizations may not be able to customize the software to meet their specific needs.
- Higher costs: Closed source software is often more expensive than open source software, which could make it more difficult for smaller organizations to afford.
- Reduced innovation: Open source software encourages innovation and collaboration among developers, which could be stifled if LLMs like ChatGPT become closed source.
- Decreased transparency: Closed source software is not transparent, which means that users cannot inspect the source code to ensure that it is secure and free from vulnerabilities.
- Limited access to data: Closed source software may not provide access to all the data that organizations need to make informed decisions about their workforce.
- Integration challenges: If LLMs like ChatGPT become closed source, it could be more difficult to integrate them with other HR systems, such as learning management systems (LMS)
Now, let’s consider the alternative. In the case of open-source development for AI tools, customers can expect..
- Increased customization: Open source software is designed to be modified or enhanced by users, which means that organizations may be able to customize the software to meet their specific needs.
- Lower costs: Open source software is often free or less expensive than closed source software, which could make it more accessible to smaller organizations.
- Increased innovation: Open source software encourages innovation and collaboration among developers, which could lead to the development of new and improved HR tech tools.
- Increased transparency: Open source software is transparent, which means that users can inspect the source code to ensure that it is secure and free from vulnerabilities.
- Increased access to data: Open source software may provide access to all the data that organizations need to make informed decisions about their workforce.
- Easier integration: If LLMs like ChatGPT become open source, it could be easier to integrate them with other HR systems, such as learning management systems (LMS)
Let me wrap this up…
The battle between open-source and closed-source technology is shaping the future of artificial intelligence and its impact on HR technology. As discussed, both approaches have their advantages and drawbacks. While closed-source AI tools offer optimized performance and security, they may limit customization, increase costs, and hinder innovation. On the other hand, open-source AI models promote collaboration, customization, lower costs, and innovation, but they may present integration challenges and require careful consideration of data access and transparency. As the landscape evolves, HR tech customers need to stay informed about the implications of these choices and how they align with their specific needs and goals. Whether the trend leans towards open source or closed source, it is clear that the decisions made in this battle will shape the future of HR technology and ultimately impact organizations and employees alike.
But hey, that’s just my opinion. What’s yours? Leave a comment and let’s have a conversation about it. Operators are standing by.
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