New York City has begun enforcing a groundbreaking law aimed at reducing bias in AI-driven recruitment and employment decisions. The Automated Employment Decision Tool (AEDT) law, believed to be the first of its kind in the US, requires employers and employment agencies to conduct an independent bias audit before using AI and algorithm-based technologies to evaluate job candidates and employees in the city.
Under the law, it is now unlawful for employers to use AI hiring tools without first conducting the annual bias audit. The audit must be carried out by an independent auditor and include calculations of selection or scoring rates across different categories such as sex, race/ethnicity, and intersectional categories. Employers must comply with all relevant anti-discrimination laws and publish a summary of the audit results.
Although the law went into effect on January 1, it lacked the necessary details on compliance. The city’s Department of Consumer and Worker Protection has since published an FAQ providing further guidance. While compliance should generally not be overly difficult, collaboration between AI tool vendors and using companies is essential.
The law applies to a range of AI technologies, and similar regulations are being considered in other states and jurisdictions, including California, New Jersey, Vermont, Washington, DC, and Massachusetts. Large companies likely have the necessary measures in place, but smaller businesses should engage with their vendors and seek legal counsel to ensure compliance.
Even for those who missed the July 5 deadline, it is important to continue working towards compliance and document efforts to seek legal advice and support from vendors. The law recognizes the complexities and challenges of implementation, as long as businesses can demonstrate good faith in their efforts to comply.
New York City’s AEDT law sets a precedent in addressing bias in AI hiring tools, and its enforcement emphasizes the growing importance of fair and ethical AI practices in employment decisions. The law aims to ensure that AI technologies are used responsibly and without perpetuating biases that could have a detrimental impact on job seekers and employees.
Frequently Asked Questions (FAQs) Related to the Above News
What is the Automated Employment Decision Tool (AEDT) law?
The AEDT law is a groundbreaking law implemented by New York City to address bias in AI-driven recruitment and employment decisions. It requires employers and employment agencies to conduct an independent bias audit before using AI and algorithm-based technologies to evaluate job candidates and employees in the city.
What does the AEDT law require employers to do?
The law requires employers to conduct an annual bias audit before using AI hiring tools. The audit must be carried out by an independent auditor and include calculations of selection or scoring rates across different categories such as sex, race/ethnicity, and intersectional categories. Employers must comply with all relevant anti-discrimination laws and publish a summary of the audit results.
When did the AEDT law go into effect?
The AEDT law went into effect on January 1.
Were there any challenges with compliance due to a lack of details?
Yes, when the law initially went into effect, there were concerns about compliance due to the lack of necessary details. However, the city's Department of Consumer and Worker Protection has since published an FAQ providing further guidance.
What is the role of AI tool vendors and using companies in compliance?
Collaboration between AI tool vendors and using companies is essential for compliance with the AEDT law. Smaller businesses should engage with their vendors and seek legal counsel to ensure compliance.
Are there similar regulations in other states and jurisdictions?
Yes, similar regulations are being considered in other states and jurisdictions, including California, New Jersey, Vermont, Washington, DC, and Massachusetts.
What should businesses do if they missed the July 5 deadline for compliance?
Businesses that missed the July 5 deadline should continue working towards compliance and document efforts to seek legal advice and support from vendors. The law recognizes the complexities and challenges of implementation, as long as businesses can demonstrate good faith in their efforts to comply.
What does the AEDT law aim to achieve?
The AEDT law aims to address bias in AI hiring tools and ensure that AI technologies are used responsibly in employment decisions. It seeks to prevent the perpetuation of biases that could have a detrimental impact on job seekers and employees.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
