Whitepaper Hiring AI Research Draft 35 min read

VAP-PAP for Hiring AI: A Technical Framework for Cryptographically Verifiable Resume Screening Audit Trails

EU AI Act classifies hiring AI as high-risk with mandatory logging by August 2026. This whitepaper presents VAP-PAP—tamper-evident audit trails with GDPR crypto-shredding and Article 86 explainability.

January 4, 2026 VSO Technical Committee VSO-BLOG-PAP-HIRING-001
Language: English 日本語 中文

Research Draft Disclaimer

This document represents research into the generalization of verifiable decision audit trails to hiring AI domains. VSO does not currently offer products or certifications for hiring AI applications. The PAP Hiring Profile is under development and subject to change based on regulatory guidance and community feedback.

Abstract

The EU AI Act (Regulation 2024/1689) explicitly classifies AI-powered resume screening and candidate evaluation systems as high-risk AI, subjecting them to mandatory logging, human oversight, and explanation requirements effective August 2, 2026. Current hiring AI systems lack the technical infrastructure to meet these obligations—they produce mutable logs, system-clock timestamps without external anchoring, and no cryptographic proof of non-tampering.

This whitepaper presents VAP-PAP (Verifiable AI Provenance – Public Administration Protocol), a domain-specific profile within the VAP Framework designed to provide tamper-evident, cryptographically verifiable audit trails for AI systems affecting public and employment decisions.

Table of Contents

1. The Auditability Crisis in Hiring AI 2. Regulatory Landscape 3. Technical Gap Analysis 4. VAP Framework Architecture 5. PAP Hiring Profile Specification 6. Implementation Architecture 7. Cryptographic Components 8. GDPR: Crypto-Shredding 9. Explainability Integration 10. Conformance Levels 11. Reference Implementation 12. Deployment Considerations 13. Conclusion

1. Introduction: The Auditability Crisis in Hiring AI

1.1 The Scale of AI-Driven Hiring Decisions

An estimated 99% of Fortune 500 companies now use some form of automated screening in their hiring processes. These systems evaluate millions of candidates daily, making consequential decisions that affect individuals' livelihoods, career trajectories, and economic mobility.

Yet these systems operate as black boxes. When a candidate is rejected, they receive at best a generic notification: "After careful consideration, we have decided to move forward with other candidates." The AI's actual reasoning remains opaque.

1.2 The Fundamental Problem

The core issue is not merely opacity but unverifiability. Current hiring AI systems:

  1. Do not log decision rationales at the individual candidate level
  2. Use mutable storage that permits post-hoc modification
  3. Lack cryptographic integrity to prove non-tampering
  4. Cannot demonstrate that the same algorithm was applied consistently
  5. Provide no mechanism for independent third-party verification

1.3 The Flight Recorder Paradigm

Aviation safety transformed after regulators mandated flight data recorders—tamper-evident devices that capture every parameter of aircraft operation. AI systems affecting fundamental rights deserve equivalent accountability infrastructure.

The VAP Framework applies this "flight recorder" paradigm to AI decision-making. VAP-PAP specifically addresses public-facing AI decisions, including employment.

2. Regulatory Landscape

2.1 EU AI Act: High-Risk Classification

The EU AI Act (Regulation 2024/1689) explicitly classifies hiring AI as high-risk under Annex III, Point 4(a):

"AI systems intended to be used for the recruitment or selection of natural persons, in particular to place targeted job advertisements, to analyse and filter job applications, and to evaluate candidates."

2.2 Applicable Requirements

ArticleRequirementTechnical Implication
Article 9Risk Management SystemContinuous monitoring and mitigation
Article 10Data GovernanceTraining data quality, bias detection
Article 11Technical DocumentationComplete system specifications
Article 12Record-KeepingAutomatic logging of all decisions
Article 13TransparencyDeployer information obligations
Article 14Human OversightOverride, stop, or intervene capability
Article 86Right to ExplanationClear explanations upon request

2.3 Enforcement Timeline and Penalties

DateMilestone
August 1, 2024AI Act enters into force
February 2, 2025Prohibited AI practices apply
August 2, 2026High-risk AI requirements apply (including hiring AI)

Penalties: Up to €15 million or 3% of global annual turnover for violations of high-risk AI obligations.

2.4 Global Regulatory Landscape

JurisdictionRegulationHiring AI Relevance
NYCLocal Law 144 (2023)Mandatory annual bias audits
IllinoisBIPA + AI Video Interview ActConsent and transparency
UKICO AI GuidanceData protection enforcement focus
JapanSoft law + Rikunabi precedentPrivacy commission action

3. Technical Gap Analysis

3.1 Current System Deficiencies

Current systems log:

  • ✓ Timestamp of application submission
  • ✓ Final decision (pass/fail/pending)
  • ✓ Aggregate metrics

Current systems do NOT log:

  • ✗ Feature extraction outputs per candidate
  • ✗ Model version and configuration hash
  • ✗ Individual feature contributions to score
  • ✗ Human reviewer override details
  • ✗ Training data provenance

3.2 Legal Consequences

GapLegal Risk
No decision loggingArticle 12 violation; cannot fulfill Article 86 requests
Mutable storageEvidence inadmissible; spoliation inferences
No integrity proofCannot defend against discrimination claims
No timestampsCannot prove consistent treatment

3.3 Litigation Landscape

CaseStatusSignificance
Mobley v. Workday (2025)Class action certifiedAI vendor held directly liable under "agent theory"
EEOC v. iTutorGroup (2023)$365,000 settlementFirst EEOC AI discrimination settlement (age)
UK ICO Audit (2024)296 recommendationsFound protected characteristic filtering

4. VAP Framework Architecture

The Verifiable AI Provenance (VAP) Framework provides:

  1. Cryptographic integrity through hash chains and digital signatures
  2. Temporal fixation via synchronized timestamps and external anchoring
  3. Provenance tracking of who, what, when, why, and with what result
  4. Third-party verifiability through published proofs
  5. Domain-specific profiles for different high-risk AI categories

4.1 Five-Layer Architecture

LayerFunctionHiring AI Application
L1: IntegrityHash chains, Merkle trees, signaturesTamper detection for decision events
L2: ProvenanceWho, what, when, why, resultDecision rationale logging
L3: TraceabilityEvent correlation via trace_idCandidate journey across events
L4: AccountabilityHuman operator recordsHuman oversight compliance (Art. 14)
L5: Domain ProfileIndustry-specific schemaHiring-specific events and timing

5. PAP Hiring Profile Specification

5.1 Event Types

Event TypeDescription
HIRING_SESSION_STARTNew screening session initiated
HIRING_RESUME_RECEIVEDCandidate application received
HIRING_FEATURE_EXTRACTIONFeatures extracted from resume
HIRING_SCORE_GENERATEDML model produces score
HIRING_DECISION_MADEPass/Fail/Review determination
HIRING_HUMAN_REVIEWHuman reviewer action
HIRING_EXPLANATION_GENERATEDArticle 86 explanation produced
HIRING_SESSION_ENDScreening session completed

5.2 Example Decision Event

{
  "event_id": "019432ab-7c8d-7def-8123-456789abcdef",
  "event_type": "HIRING_DECISION_MADE",
  "timestamp": {
    "unix_ns": 1735689600000000000,
    "iso8601": "2026-01-04T12:00:00.000000Z",
    "precision": "MICROSECOND",
    "sync_status": "NTP_SYNCED"
  },
  "provenance": {
    "actor": {
      "type": "AI_MODEL",
      "identifier": "resume_scorer_v2.3.1",
      "model_config_hash": "sha256:a1b2c3d4e5f6..."
    },
    "action": {
      "decision": "PASS",
      "score": 0.82,
      "threshold_applied": 0.70,
      "contributing_factors": [
        {"factor": "relevant_experience_years", "contribution": 0.35, "direction": "POSITIVE"},
        {"factor": "skills_match_score", "contribution": 0.28, "direction": "POSITIVE"}
      ]
    }
  },
  "integrity": {
    "prev_hash": "sha3-256:789xyz...",
    "event_hash": "sha3-256:abc123...",
    "signature": "ed25519:..."
  },
  "explainability": {
    "method": "SHAP",
    "simplified_explanation": "Your application was advanced based on strong alignment between your experience and the role requirements."
  }
}

6. Implementation Architecture

6.1 Sidecar Pattern

VAP-PAP recommends the sidecar architecture for integration with existing hiring systems:

  • Requires no modification to core hiring application
  • Intercepts decision events at API boundary
  • Signs and chains events independently
  • Can be deployed incrementally
┌─────────────────────────────────────────────────────────────┐
│              EXISTING HIRING SYSTEM                          │
│  [Resume Parser] ──▶ [ML Scorer] ──▶ [Decision Engine]      │
│                                              │               │
│                                      [API Gateway]          │
└──────────────────────────────────────────┼───────────────────┘
                                           │
                                   ┌───────▼───────┐
                                   │  PAP SIDECAR  │
                                   │  • Logger     │
                                   │  • Signer     │
                                   │  • Chainer    │
                                   └───────┬───────┘
                                           │
                                   ┌───────▼───────┐
                                   │   External    │
                                   │   Anchoring   │
                                   │  (RFC 3161)   │
                                   └───────────────┘

7. Cryptographic Components

PrimitiveStandardPurpose
Hash AlgorithmSHA-3-256Event hashing, chain linkage
Signature AlgorithmEd25519 (RFC 8032)Event authentication
CanonicalizationJCS (RFC 8785)Deterministic JSON serialization
Merkle TreesRFC 6962Batch anchoring, inclusion proofs
Post-QuantumML-DSA (Dilithium)Future migration path

7.1 Merkle Tree Anchoring

TierAnchor FrequencyAnchor Target
High Assurance1 hourRFC 3161 TSA + Transparency Log
Standard24 hoursRFC 3161 TSA
BasicSession endInternal timestamp

8. GDPR Compatibility: Crypto-Shredding

8.1 The Tension

GDPR Article 17 establishes the Right to Erasure. EU AI Act Article 12 mandates log retention. These appear contradictory.

8.2 Crypto-Shredding Solution

  1. Personal data is encrypted with per-candidate keys (AES-256-GCM)
  2. Only the encrypted ciphertext is included in the hash chain
  3. Upon erasure request, the encryption key is destroyed
  4. The hash chain remains intact, but personal data is mathematically irrecoverable

Result:

  • Hash chain integrity: PRESERVED ✓
  • Personal data: IRRECOVERABLE ✓
  • Audit trail: VALID ✓
  • GDPR compliance: SATISFIED ✓

9. Explainability Integration

9.1 Multi-Layer Explanation Model

LayerAudienceContent
CitizenCandidatesPlain language summary
RepresentativeLegal counselDetailed factors, thresholds
AuditorRegulatorsModel specs, bias audit results
TechnicalDevelopersFull event chain, reproduction steps

9.2 Supported Methods

MethodDescriptionUse Case
SHAPShapley Additive ExplanationsFeature contribution analysis
LIMELocal Interpretable Model-agnosticLocal decision boundary
Counterfactual"What would change the decision?"Actionable feedback
Rule-BasedIf-then extractionTransparent criteria

10. Conformance Levels

LevelRequirementsCertification
PAP-HIRING-1Basic integrity, event logging, signaturesSelf-declaration
PAP-HIRING-2+ External anchoring, crypto-shredding, human oversightVSO Test Suite Pass
PAP-HIRING-3+ Third-party audit, full explainability, bias monitoringThird-party CAB Certification

10.1 Regulatory Mapping

RequirementEU AI ActPAP-1PAP-2PAP-3
Automatic loggingArticle 12
6-month retentionArticle 19
Human oversightArticle 14-
Explanation capabilityArticle 86-
Bias monitoringArticle 10--
Third-party verificationArticle 43--

11. Reference Implementation

from vap_pap_hiring import HiringAuditLogger, CryptoShredder

# Initialize logger
logger = HiringAuditLogger(
    signing_key=load_key_from_hsm(),
    anchor_client=RFC3161Client("https://freetsa.org/tsr"),
    storage=ImmutableStorage("s3://audit-logs/"),
    conformance_level="PAP-HIRING-2"
)

# Log decision event
event = logger.log_decision(
    candidate_id_hash=candidate_hash,
    job_requisition_id="JOB-2026-001",
    model_version="resume_scorer_v2.3.1",
    score=0.82,
    threshold=0.70,
    decision="PASS",
    contributing_factors=[
        {"factor": "experience", "contribution": 0.35, "direction": "POSITIVE"}
    ],
    explainability={
        "method": "SHAP",
        "simplified": "Strong experience match"
    }
)

# Verify chain integrity
assert logger.verify_chain()

# Handle GDPR erasure
shredder.process_erasure_request(candidate_id)
assert logger.verify_chain()  # Chain still valid

12. Deployment Considerations

ComponentSpecification
Compute2 vCPU, 4GB RAM minimum for sidecar
StorageAppend-only / WORM storage recommended
NetworkOutbound HTTPS for TSA anchoring
HSMRecommended for signing keys
Time SyncNTP minimum; PTP for high-assurance

13. Conclusion

The EU AI Act's August 2026 deadline creates an urgent imperative for hiring AI operators. Current systems lack the technical infrastructure to comply with Article 12 (logging), Article 14 (human oversight), and Article 86 (explanation) requirements.

VAP-PAP provides:

  • Tamper-evident audit trails through cryptographic hash chains
  • Third-party verifiability via digital signatures and Merkle proofs
  • GDPR compatibility through crypto-shredding
  • Article 86 compliance with integrated explainability
  • Progressive conformance levels matching organizational maturity

"No decision without justification. No log without proof."

Related Resources

VAP Framework PAP Specification VCP Specification

Document ID: VSO-BLOG-PAP-HIRING-001 | Version: 1.0 | Status: Research Draft

This article is published under CC BY 4.0.