Employers have increasingly turned to AI to speed up the process of screening job candidates and making hiring decisions. As of 2022, a survey found that 1 in 4 organizations use automation or AI, including in recruitment and hiring.
New York City employers are barred from using automated employment decision tools for screening, hiring, and promotion unless they conduct an annual audit to test for gender and racial bias. They must also notify job candidates and employees if they are using the tech. The city can fine businesses for noncompliance, starting at $500 and up to $1,500 for subsequent violations.
There are themes in New York City's law that other AI regulations will repeat. One of the primary purposes of the law is to counteract bias and discrimination risk. That should be expected in other laws as well.
The law could foreshadow requirements that businesses and organizations exercise due diligence when using the tech, and transparency and notice requirements are also likely to appear in other laws.
Public interest groups say the regulations let employers off too lightly and fail to cover hiring decisions based on age or disability. The business community also criticized the law. Independent auditing of AI is still an undeveloped field with little oversight or standards. They argued that independent audits are not a feasible or optimal approach and said internal personnel should be allowed to audit software so long as they were not involved in the development of the AI system. Some legal experts have said that the rules are too vague.
New Jersey is among the other states attempting to bar AI hiring software unless employers agree to a bias audit. Lawmakers in Maryland have enacted a law requiring consent from job candidates before an employer uses facial recognition analysis software during the interview process. In Illinois, consent is required if an employer uses AI video analysis of interviews. California is proposing limits on AI if it is shown to screen candidates based on race, sex, and other protected characteristics.
According to the National Conference of State Legislatures, at least 25 states, Washington, D.C., and Puerto Rico, introduced AI bills in the 2023 legislative session, and 15 states and Puerto Rico enacted legislation or adopted resolutions.
The President has issued an executive order on AI, adopting safeguards to protect Americans against the technology's potential risks and encourage innovation. The order addresses a wide array of dangers related to privacy, security, bias, and disruptions to the labor market.
Comentarios