The use of artificial intelligence (AI) tools is rapidly increasing in organizations worldwide. The purpose of this cross-sectional experimental study is to compare perceptions of procedural fairness and perceptions of discrimination based on sexual orientation in AI-assisted versus human recruitment processes. Using vignettes, we asked participants (N = 278) to assess recruitment processes and fictional applicant’s LinkedIn profiles where sexual orientation was signaled. In more detail, after participants were informed about the negative decision made either by the AI tool or the human recruitment team, they were asked to report their perceptions of procedural fairness and perceptions of discrimination based on sexual orientation. We used independent samples t-tests and two-way ANOVA to analyze our main hypotheses. Our findings reveal that AI-assisted recruitment processes are perceived as less procedurally fair than human recruitment processes. In contrast, the results indicate that AI-assisted recruitment processes are perceived as less discriminatory for non-heterosexual applicants compared to heterosexual applicants. The findings cover a gap in research on perceived discrimination based on sexual orientation in AI-assisted recruitment. Moreover, by shedding light on the complexities of perceptions concerning AI-assisted and human recruitment processes, our findings underline the emerging need for organizations to invest in AI literacy, increase employees’ AI familiarity, and openly commit to AI legislation. Lastly, our findings may provide insights for informing talent acquisition strategies, learning and development programs, and diversity, equity, and inclusion initiatives in digitized companies. / <p>The final thesis submission was on the 02.06.2024 however, the final seminar including the thesis defence was on the 21.05.2024.</p><p>Please find the datasets (raw and cleaned) and all further supplementary materials on OSF, these are hyperlinked in the final document.</p>