Aipedia: Recruitment agencies

AI checks and the reg 19 suitability duty

Aipedia, by the Apex broking team · Last reviewed 2026-10-27

AI CV parsing does not satisfy the Conduct Regulations duty to confirm a candidate's identity, qualifications and suitability. That matters because a hirer who suffers loss from an unsuitable placement will ask what the agency actually checked.

Part of: AI in recruitment agencies

In short

Regulation 19 of the Conduct Regulations 2003 requires an agency to confirm a work-seeker's identity, experience, training, qualifications, authorisations and willingness to do the work, and to keep evidence. AI CV screening or parsing reads what the candidate claims; it does not confirm it. Regulations 20 to 22 add duties on suitability, passing information to the hirer and extra checks for vulnerable roles. The Fair Work Agency now enforces these rules. When a poorly vetted placement causes a hirer loss, PI usually responds to the negligence claim, subject to the wording.

How agencies use AI in vetting

AI tools extract qualifications, dates and employers from a CV into structured fields, flag gaps, compare claims with online profiles and summarise references. The output looks like a vetting record. It is easy for a busy consultant to treat a tidy parsed profile as a checked one and submit the candidate.

The risk grows with volume. In temporary and contract desks, where workers may be supplied within hours, an automated workflow can move a candidate from application to assignment with the verification steps marked as done because the fields are populated, not because anyone checked them.

The duties that apply

The Conduct Regulations 2003, enforced by the Fair Work Agency since 7 April 2026, set out what the agency itself must do:

reg 18: obtain enough information from the hirer to select a suitable worker, including duties, qualifications and risks.
reg 19: confirm identity, experience, training, qualifications, authorisations (including right to work) and willingness to do the work, and keep evidence. AI CV screening or parsing does not discharge this duty.
reg 20: take all reasonably practicable steps so the placement is not detrimental to the work-seeker or the hirer, and act on information that a worker is unsuitable.
reg 21: pass the reg 19 information to the hirer and confirm it in writing within 3 business days.
reg 22: for roles involving vulnerable people, two references, qualification checks and DBS.
reg 29: keep records sufficient to show compliance for at least 12 months.

REC Code principle 6 (professional knowledge) points the same way.

What can go wrong

Illustrative: an agency places a finance manager whose parsed CV lists a professional qualification. The AI tool extracted it correctly from the CV, but nobody checked it with the awarding body. Months later the hirer discovers the qualification was never awarded after errors in the accounts. The hirer claims its losses from the agency, arguing that reg 19 and the terms of business required the agency to verify qualifications, and that the written confirmation under reg 21 said it had.

For care or education roles, missing a reg 22 check because an automated workflow marked it complete can put vulnerable people at risk as well as producing a claim.

How PI usually responds

There is no statutory PI requirement for agencies, but a hirer's claim that the agency negligently failed to vet a candidate is the kind of claim a recruiter's PI policy commonly responds to, subject to the wording, the limit and the excess. AI involvement does not usually change that, unless the policy has an AI exclusion or a condition about verification procedures. Insurers may look at whether the agency followed its own process. Contractual promises that go beyond the legal duty, such as guarantees of a candidate's performance, may fall outside cover. See bad hire and vetting claim examples.

Practical controls

Treat AI output as a starting point; verify each reg 19 item against a primary source.
Record who checked what, when and against which document.
Make reg 22 checks a hard stop that a person must sign off.
Do not let the reg 21 confirmation be generated from unverified parsed fields.
Review reference summaries against the original references.
Keep evidence for at least 12 months under reg 29, longer if claims are possible.

How Apex helps

Apex arranges PI for recruitment agencies; a broker can check how your policy responds to vetting claims where AI tools were used. See the AI in recruitment agencies hub, AI-summarised references, AI in right to work checks and our recruitment PI guide.

Sources

Frequently asked

Does AI CV parsing count as a reg 19 check?

No. Reg 19 requires the agency to confirm identity, experience, training, qualifications, authorisations and willingness to do the work, and to keep evidence. Parsing reads what the candidate wrote; confirmation needs evidence from a source such as the document, the issuer or a referee.

Who enforces reg 19 now?

The Fair Work Agency, which began operating on 7 April 2026 and replaced the Employment Agency Standards Inspectorate. It enforces the Employment Agencies Act 1973 and the Conduct Regulations 2003.

Will PI pay if a placement fails because AI missed something?

A hirer's claim alleging negligent vetting is commonly within a recruiter's PI cover, subject to the wording, limit and excess. Check for any AI exclusion and for conditions about verification, and avoid contractual guarantees beyond your legal duty.

Can an AI tool verify qualifications for us?

Some tools check documents or registers, and that can be good evidence if the check is against a reliable primary source and recorded. A tool that only reads the CV or compares it with a public profile does not verify anything. The agency remains responsible for the reg 19 confirmation either way.

Check your PI covers how you use AI

Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.