Running a large-scale business is not likely possible without proper identification of people who are going to work on the project. Failure to do so may not only harm a business but also bring many other negative consequences, legal in the first turn.
In this article, we will reveal the essence and benefits of remote identification using AI. This innovative approach allows companies, regardless of their size, to review profiles fast and take actions needed to be fully compliant with their own policies and applicable laws. Here is how things work when advanced technologies are turned on.
Remote Interaction Is a Major Driver of Changes
During the last few years, the role of remote work has risen unprecedentedly. Of course, the major factor that impacted this tendency in the past was the COVID-19 pandemic. However, later, this tendency continued to be predominant in the working and business environments.
It is much more convenient and cost-effective. Companies also save a significant portion of their costs, majorly related to rentals and arranging other facilities for their employees.
At the same time, there is another side of the coin. Many global businesses find remote work and communications to be the single options.
As the new era of work evolves further, many new challenges appear on the table. Global companies increase their demand for international hiring since they are no longer limited to local talent pools. Proper personal identification sometimes becomes the major challenge in this context.
Why Identity Verification Matters?
The reason appears to be on the surface. However, there are many more aspects than the proper identification of a person who cooperates with or is employed by a company. There are several common risks that encourage global companies to implement advanced AI-powered tools:
- Fake identities. When we speak about remote work, it often becomes much easier to present false or altered identities by the employees. They may provide the details that bolster their applications but are not true in nature. Occasionally, such major data breaches as gaining access to sensitive company data and exploiting loopholes in its policies may also be in place. These aspects become especially important when it comes to managing roles or the jobs associated with large-scale financial transactions.
- Tax fraud. This aspect becomes very important when hiring employees overseas. Different countries have different tax regulations and requirements as well. Failing to ensure proper identity verification can cause such issues as tax evasion or misreporting. This may negatively impact the employers in the end since they can face severe penalties if they fail to comply with applicable tax requirements, including when misclassifying their employees.
- Legal liabilities. Many states have specific laws governing employment issues, data privacy and protection, and the rights of employees. When employers hire personnel across the globe and fail to meet the applicable requirements, this may lead to severe consequences and fines. The breach of contracts and data protection violations are the most common cases when employers operating worldwide bear legal liability.
More about Cross-Border Compliance
Since this aspect matters a lot when hiring employees across different jurisdictions, we will touch it more precisely by considering several of the most important compliance standards:
- GDPR (General Data Protection Regulation). This document regulates data processing and protection across the European Union. It is applicable to any business operating within the EU or handling the personal data of EU residents. This standard sets strict guidelines on how companies have to collect, process, and store employee personal information.
However, on the other side, organizations have to ensure that identity verification operations are not only required to carry their operations in line with the GDPR’s data protection and consent requirements. They are also required to carry out proper identification. AI-powered tools greatly foster these processes ensuring full compliance and precise identification. - SOC 2 (System and Organization Controls) Compliance. For companies that offer services to customers, especially in tech sectors, adhering to this standard is crucial. It is predominately focused on securing personal details as well as ensuring systems are well protected from different unauthorized accesses. Seamless employee verification plays an important role in this context. It has to meet necessary security and privacy standards. This is one of the core assignments within this framework.
- Local labor laws. We have already partially touched on this aspect and brought more details. When hiring employees from abroad, it is essential to comply with the local regulations. Most often, these are the norms regarding the employee’s working hours, taxation, vacation, sick leave, and other benefits. Understanding all these nuances is essential for foreign employers.
How AI and Biometric Verification Help Companies Verify Employees Remotely
AI and biometric verification are two approaches that rapidly transform the labor and tech landscapes. They allow straightforward, quick, and accurate employee verification through the following aspects of biometric verification which is based on assessing biological characteristics to authenticate the person’s identity. These common biometric methods are typically applied:
- Facial recognition. AI-powered facial recognition systems grasp and analyze unique facial features that each human has to verify one’s identity. The AI tools can effortlessly compare the employee’s live video or photo to the data about the person stored in a database, ensuring they are who they claim to be.
- Fingerprint scanning. These unique AI algorithms apply the approach to map the unique ridges and valleys on the finger of each person to verify one’s identity.
- Iris Scanning. AI-powered iris recognition detects the unique patterns in the iris of the eye – which are also unique to each person – to authenticate someone’s identity.
This personal data is further processed by the AI mechanisms allowing it to carry out authentication swiftly. In general, AI tools are very helpful since they allow to accomplish successfully numerous important tasks:
- Remote verification and accessibility. There is no need to ensure physical presence to carry out accurate authentication. Having AI tools and employee biometrics, companies can verify them remotely, eliminating any need to be physically present during these procedures. This is especially important for remote employees in different locations. They don’t need to provide any physical access cards or documents. In the end, this approach ensures not only ease and convenience for all the parties involved in the process. It also allows cutting up to 50% of the costs needed for employee identification when it is carried out by humans.
- Seamless workflow. AI allows the employer to carry out real-time processing of biometric data and ensure quick verification without delays. Even more, once biometric authentication is completed, employees may get instant access to the files, systems, or specific tools they need for their work in a secure manner.
- Streamlined onboarding and HR management. AI and biometric authentication streamline employee onboarding since there is no need for manual intervention and all of the actions are carried out remotely. All biometric data obtained is automatically linked to employee profiles in HR systems. This effort not only decreases the risk of human error but also greatly optimizes administrative efforts. Afterward, AI can also be used for further monitoring during remote work hours. This tool can effectively track employee involvement and ensure they remain engaged and work in authorized environments.
- Fraud prevention. AI-powered biometric identification systems enable employers’ higher security compared to traditional identification methods like passwords or PINs. Since biometric data is unique to each person, it is very difficult if not impossible for attackers to steal or replicate it. Remote employees can also check how their biometrics is used. Since AI can integrate biometric verification with other authentication methods like passwords or OTPs (one-time passwords), an extra layer of security is added to the authentication process.
Where Advanced Identity Verification is Already Applied?
There are many industries where advanced identification technologies are applied already. They show especially considerable results in the areas where huge financial resources are involved, for instance:
- Financial and fintech institutions. Using the AI-bolstered tools greatly simplifies customer onboarding for banks and fintech companies. Identifying clients and carrying out payments becomes very easy and straightforward. The extra layer of security is added when it comes to data processing and protection.
- Crypto companies. Identifying and checking wallet owners becomes easy and straightforward. This endeavor can be arranged in line with all of the standards that may be in place.
- Healthcare. In this area, processing the patients’ personal data through secure means is especially important. AI-powered tools allow employers to do this effectively without or with minimal human involvement. This reduces the risks of data leaks while increasing the level of accuracy and data protection at the same time.
- iGaming companies. Age verification is very important for adhering to responsible gaming practices and legislative requirements. Having clear and up-to-date information is essential in this case. AI-powered tools allow employers to complete these assignments successfully and keep all the data accurate.
Since the advanced identification tools have shown their effectiveness in these high-stake areas already, they can also show the same good results in employee identification as well. This will help you to create prerequisites for effective remote work.
Bottom Line
AI ensures a significant impact on internal processes, especially when it comes to data processing and personal authentication. It allows employers to carry out authentication fast, securely, and accurately, cutting the associated costs by 50% at least. Another benefit it ensures is a full compliance with all of the applicable data processing standards and streamlined workflow overall. Apply these advancements in your business to see a positive difference in your internal processes and balance sheet!
