How Human-in-the-Loop Override Can Prevent AI-Based Discrimination

In many workplaces today, human-in-the-loop (HITL) systems are becoming the new normal when it comes to using artificial intelligence (AI). Just like AI models need the right guidance and training, a recent court case in Australia, Giggle for Girls Pty Ltd v Tickle [2026] FCAFC 64 (Giggle v Tickle), highlighted the importance of ensuring that the human component of these systems is well-versed in anti-discrimination laws.

The Giggle v Tickle case showed that while HITL can help incorporate AI cautiously, employers must remember that their responsibilities to follow discrimination laws remain unchanged. In this case, a human review overruled an AI decision to include a transgender woman onto a women’s social media platform, which was ultimately deemed discriminatory by the court.

Employers should be aware of their employees’ knowledge of discrimination laws, especially when their roles involve reviewing AI-supported decisions, such as in hiring and initial screening processes within human resources functions.

The Federal Court of Australia found that Giggle for Girls Pty Ltd unlawfully discriminated against Roxanne Tickle by excluding her from the Giggle App based on her gender-related appearance, violating the Sex Discrimination Act 1984. The court determined that Giggle treated Tickle, a transgender woman, differently than someone who was assigned female at birth, solely based on gender identity.

This case serves as a reminder for employers using AI programs with HITL features to have clear policies and training in place to prevent legal violations. Proper training for all employees, especially those involved in reviewing AI decisions, is crucial to avoid discriminatory practices.

While the court’s decision primarily focused on legal aspects, it underscores the need for companies to implement policies and training to prevent discrimination in AI-assisted decision-making processes. If employers use AI and HITL, they must ensure that their employees are well-trained and informed about anti-discrimination laws to prevent legal issues.

For guidance on navigating AI systems with HITL mechanisms, consider consulting with an experienced legal team specialized in international employment advice. It’s essential to have proper policies and practices in place to comply with the law and prevent discrimination in the workplace.