NYC to pass pioneering AI laws this Wednesday.

Employers in New York City Face New Regulations on AI in Hiring Decisions

Starting this week, employers in New York City will be subject to new regulations regarding the use of artificial intelligence in their hiring processes. The city will begin enforcing Local Law 144 on Wednesday, which prohibits the use of automated employment decision tools without an annual bias audit and informing applicants about the screening tool.

This groundbreaking law will be the first of its kind within the United States, potentially setting the standard for other cities and states to establish guidelines for AI practices.

According to local lawyers, the use of AI technology in hiring is already quite prevalent. Nicholas Pappas, a labor and employment lawyer at Dorsey & Whitney, stated that “more than half of all private employers are already using artificial intelligence in one form or another in recruiting and hiring.”

The affected tools encompass a wide range, including resume scanners, chatbots for virtual interviews, knowledge tests, and various other elements used to evaluate candidates. The impact of this law extends beyond New York City, as it applies not only to workers within the city but also to applicants from outside the city seeking jobs within it.

Government Response and Initiatives

The federal government is taking swift action to establish safeguards for AI. Senate Majority Leader Chuck Schumer (D-NY) has introduced a five-point framework for AI-related legislation, organized an AI briefing for senators, and plans to host forums to enhance the legislative branch’s understanding of AI. Representatives Ted Lieu (D-CA) and Ken Buck (R-CO) have also proposed legislation to create an AI commission.

Additionally, the National Institute of Standards and Technology has launched a working group to address the legal and regulatory challenges posed by AI software like ChatGPT.

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