Before we can discuss how this law applies, let's start with what the law actually says. This is a fairly broad bill, and one that requires a bit of unpacking before understanding the responsibilities of the employers. Unfortunately, the law, as written, does not give much guidance for employers. Let's attempt to unpack what the bill does provide. Before discussing what this means for employers, let's look at some definitions: The Bias Audit must include testing of the AI Tool to assess the tool's disparate impact on persons of any Component 1 Category.

The California Fair Employment and Housing Council (FEHC) recently took a major step towards regulating the use of artificial intelligence (AI) and machine learning (ML) in connection with employment decision-making. On March 15, 2022, the FEHC published Draft Modifications to Employment Regulations Regarding Automated-Decision Systems, which specifically incorporate the use of "automated-decision systems" in existing rules regulating employment and hiring practices in California. The draft regulations seek to make unlawful the use of automated-decision systems that "screen out or tend to screen out" applicants or employees (or classes of applicants or employees) on the basis of a protected characteristic, unless shown to be job-related and consistent with business necessity. The draft regulations also contain significant and burdensome recordkeeping requirements. Before the proposed regulations take effect, they will be subject to a 45-day public comment period (which has not yet commenced) before FEHC can move toward a final rulemaking.

New York City will become the latest jurisdiction to regulate an employer's use of artificial intelligence (AI) and other "automated employment decision tools" in screening job candidates. The law is intended to curb bias in hiring and promotion decisions. Effective January 2, 2023, employers and employment agencies will be prohibited from using automated decision tools for screening employment or promotion candidates unless: (1) the tool has undergone an independent bias audit no more than one year prior to its use; and (2) certain information relating to the audit results is made publicly available on the employer's or employment agency's website. Additionally, companies will be required to notify employees or job applicants whether an AI tool was used to make employment decisions (amongst other notice requirements). NYC's law comes on the heels of the Equal Employment Opportunity Commission's (EEOC) announcement in October 2021 of an initiative to examine how AI technology is "fundamentally changing" the way employment decisions are made.

WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) is launching an initiative to ensure that artificial intelligence (AI) and other emerging tools used in hiring and other employment decisions comply with federal civil rights laws that the agency enforces, EEOC Chair Charlotte A. Burrows announced today at a Genius Machines 2021 event. "Artificial intelligence and algorithmic decision-making tools have great potential to improve our lives, including in the area of employment," Burrows said. "At the same time, the EEOC is keenly aware that these tools may mask and perpetuate bias or create new discriminatory barriers to jobs. We must work to ensure that these new technologies do not become a high-tech pathway to discrimination." The initiative will examine more closely how technology is fundamentally changing the way employment decisions are made.

On October 28, 2021, the U.S. Equal Employment Opportunity Commission (EEOC) announced the launching of an initiative to ensure that Artificial Intelligence (AI) and other emerging tools used in hiring and other employment decisions comply with federal civil rights laws that the agency enforces, according to an EEOC press release. "Artificial intelligence and algorithmic decision-making tools have great potential to improve our lives, including in the area of employment. At the same time, the EEOC is keenly aware that these tools may mask and perpetuate bias or create new discriminatory barriers to jobs," EEOC Chair Charlotte A. Burrows stated in the press release. The initiative will examine how technology is fundamentally changing the way employment decisions are made and aims to guide applicants, employees, employers, and technology vendors in ensuring these technologies are used with federal equal employment opportunity (EEO) laws. "Bias in employment arising from the use of algorithms and AI falls squarely within the Commission's priority to address systemic discrimination. The EEOC will address workplace bias that violates federal civil rights laws regardless of the form it takes," said Burrows, who was appointed by President Joe Biden in January 2021.

Artificial intelligence (AI) has wholly transformed the way employees are recruited, hired, trained, evaluated, and even fired.

Some image recognition programs would not recognize this image as a bride. But not all brides wear white. Bias and discrimination are often used interchangeably. But they are not the same. Bias is a point of view or a preference for one thing over another.

Recently, I sat down with Stephen Wu, a shareholder at Silicon Valley Law Group, and Peter Gillespie, a partner at Laner Muchin, to talk about one of the newest ways AI is being deployed: as a way to intelligently forecast risk and measure the development performance of software organizations. This new method of using AI can give software companies a new level of understanding of their software delivery pipeline's performance. But should you use an AI system to judge the performance of people? We discussed the ethics behind this new use of technology and what it holds for the future of performance management and software development. Here's what your team needs to understand about using AI for HR related decisions on software teams.