Aipedia: Recruitment agencies

AI-written job adverts and discriminatory wording

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

An agency is responsible for an AI-written job advert it publishes, including discriminatory or misleading wording. Generative tools draft fast but can reproduce biased phrasing or invent details of pay and conditions.

Part of: AI in recruitment agencies

In short

Agencies may use generative AI to draft job adverts from a client brief. The tools can produce wording that discourages protected groups, such as phrases implying age or gender, or add perks and pay that the client never agreed. The Equality Act 2010 prohibits an employment service-provider from discriminating in how it selects who receives its services, and the CAP Code requires job ads to describe real vacancies with accurate pay and conditions. Liability between agency and hirer depends on who wrote and approved the advert. Discrimination claims may be excluded under PI.

How agencies use AI for adverts

Consultants paste a client brief into a generative AI chatbot and ask for an advert, or use a writing feature built into the applicant tracking system. The tool polishes, expands and sometimes optimises for search. It may also fill gaps: adding benefits, describing the ideal candidate in familiar clichés, or estimating salary. Each addition is a statement the agency publishes in its own name.

The duties that apply

Equality Act 2010: agencies are employment service-providers under section 55 and must not discriminate in their arrangements for selecting who receives their services. Wording such as "young and energetic" or "recent graduate" can indirectly discourage protected groups. The EHRC enforces the Act.
Advertising rules: CAP Code section 20 requires job ads to relate to genuine vacancies, describe working and living conditions accurately, state earnings precisely and say whether pay is salary, commission or both. Employment agencies and businesses must give their full name and contact details and say whether a role is temporary or permanent.
Conduct Regulations reg 18: obtain enough information from the hirer to select a suitable worker. An advert built from an AI-expanded brief can drift from what the hirer actually said.
REC Code: principle 2 (honesty and transparency) and principle 4 (respect for diversity).

The REC AI guidance advises checking that criteria do not disadvantage protected groups.

What can go wrong

Illustrative: an agency uses AI to turn a client's short brief into an advert. The tool adds "would suit a digital native" and a salary range higher than the client approved. Older applicants complain that they were discouraged, and an applicant who accepts an offer at the lower figure says the advert misled them. The client says it never saw or approved the wording and refuses to share the cost of the claim.

Who carries liability

An agency that drafts and publishes the advert is likely to be the primary target, whatever the client's brief said, and the hirer may also be liable for the arrangements it makes. Between the businesses, the outcome usually turns on who wrote the text, who approved it and what the terms of business say. Keeping client sign-off on the final wording helps either way.

How PI usually responds

Discrimination claims by applicants may be excluded from PI or limited, and they may not fit an employment practices policy because applicants are not the agency's employees. A client's claim that the agency's misleading advert caused it loss may fall within PI, subject to the wording. Advertising complaints handled by the ASA rarely involve damages but can damage client relationships. See AI bias and discrimination claims.

Practical controls

Give the AI tool only the approved brief and tell it not to add pay, benefits or requirements.
Have a consultant check every advert for age, gender, disability or race-coded language.
Check pay, location, hours and contract type against the client's written instructions.
Get client sign-off on the final text and keep it.
Include the agency's full name, contact details and whether the role is temporary or permanent.
Keep candidate and client confidential data out of free AI tools.

How Apex helps

Apex arranges PI for recruitment agencies; a broker can check how your policy treats advertising and discrimination allegations. See the AI in recruitment agencies hub, AI CV screening, recruitment chatbots and outreach and our recruitment PI guide.

Sources

Frequently asked

Can an AI-written job advert breach the Equality Act?

Yes. If the wording discourages people with a protected characteristic, such as by implying a preferred age, the agency as an employment service-provider and the hirer may face claims. Using AI is not a defence; the agency publishing the advert is responsible for its content.

What advertising rules apply to job ads?

CAP Code section 20 requires job ads to relate to genuine vacancies, describe conditions accurately, state earnings precisely and show whether pay is salary, commission or both. Employment agencies and businesses must give their full name and contact details and say whether a role is temporary or permanent.

Is the agency or the client liable for a discriminatory advert?

Both may face claims. Between them, liability usually depends on who drafted the wording, who approved it and the terms of business. Keep the client's written approval of the final advert.

Can we use AI to suggest salary ranges for adverts?

You can use it as a prompt, but publish only the pay the client has approved in writing. CAP Code section 20 requires earnings to be stated precisely, and an invented range can mislead applicants and cause disputes with the client over offers.

Does PI cover a discrimination claim from an applicant?

Possibly not, or only to a limited extent. Some PI wordings may exclude discrimination, and employment practices cover usually relates to the business's own staff. Check your policy wording with your broker.

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.

Start a PI quote Request a callback

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.