Governing AI in Recruitment: A Comparative Context-Risk Analysis of Indonesia and Malaysia
Year: 2026
Type: conference-paper
Abstract: The rapid integration of Artificial Intelligence (AI) into recruitment processes introduces significant ethical, operational, and regulatory risks alongside opportunities for efficiency and scalability, particularly in emerging economies. This study addresses the need for a structured governance framework to guide responsible AI adoption in recruitment across varying organizational and national contexts, with a focus on Indonesia and Malaysia as comparative ASEAN case studies. Through an integrative literature review and policy analysis, this study adapts the Context-Risk Matrix that was originally developed for educational technology to the HR recruitment domain. The matrix classifies AI recruitment tasks based on two dimensions: HR contextual nuance and outcome risk. A comparative analysis of Indonesia and Malaysia examines how differences in digital readiness, regulatory maturity, and cultural factors shape AI governance approaches. The adapted Context-Risk Matrix provides a four-quadrant governance framework that prescribes differentiated AI strategies: General AI for low-risk, low-nuance tasks; Vertical AI for high-risk, low-nuance functions; human-led AI assistance for high-risk, high-nuance decisions; and hybrid systems for high-nuance, low-risk interactions. The comparative analysis reveals that Malaysia's structured national AI roadmap enables proactive, regulated AI adoption, while Indonesia's fragmented regulatory landscape leads to agile but inconsistent implementation, presenting both challenges and innovation opportunities. The study demonstrates that the Context-Risk Matrix serves as a practical, scalable tool for HR practitioners, policymakers, and developers, promoting context-aware and risk-informed AI governance. The findings highlight the importance of tailored governance strategies that balance regulatory oversight with flexibility, contributing to the discourse on ethical AI in HR and offering actionable insights for organizations navigating AI-driven recruitment in Southeast Asia and beyond.
Institutions: Binus University, University of Indonesia
Language: English
Topic: AI and HR Technologies
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7202269288