New York City AI Bias Law Charts New Territory for Employers

A novel New York City law that penalizes employers for bias in artificial intelligence hiring tools is leaving companies scrambling to audit their AI programs before the law takes effect in January. The law, which requires employers to conduct an independent audit of the automated tools they use, marks the first time employers in the US will face heightened legal requirements if they wish to use those any automated decision-making tools. Such tools--which can range from algorithms built to find ideal candidates to software that assesses body language--have faced scrutiny in recent years for their potential to perpetuate bias against protected groups. But without guidance from the city, employers aren't clear what, exactly, is expected of them and how to prepare. "Notably, the law does not define who or what is meant by an'independent auditor,'" said Danielle J. Moss, a partner at Gibson Dunn & Crutcher LLP.