New York’s new AI hiring law just went into effect and other states (and countries) are adding these regulations. What does it mean for AI and hiring? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Answer by Sean Behr, CEO, Fountain, on Quora:
Any burgeoning technology that touches nearly every aspect of our lives should elicit a healthy level of skepticism. And in an industry like human resources, wherein “humans” typically dictate the professional future of other humans, the need for such skepticism might be elevated.
Governments around the world are enacting laws that will keep a close eye on this technology, the most recent of which will affect recruiters and talent acquisition (TA) professionals in the city that never sleeps (but who might be able to finally get some shut-eye with the arrival of AI). As of July 1, hiring teams in New York City are now subjected to new regulations governing the use of AI in hiring, also defined by the Department of Consumer and Worker Protection as “automated employment decision tools”, or AEDTs. The purpose of this new measure is to ensure companies act with fairness and equal consideration when hiring with AI, a technology that has sparked concern over its questionable objectivity.
The law was officially passed back in 2021 by the City Council and has since garnered both support and criticism. As it stands, the current regulation only inspects for bias by gender, race, and ethnicity. It does not consider discrimination based on other factors like age or disability.
Under the law, organizations must inform job applicants that they are using AI as part of their decision-making process. They also must undergo annual audits conducted by independent parties to make sure the software is devoid of potential bias. If any violations are found, companies will be fined. What’s more, companies will have to publish the results of these audits.
From the applicant side, job seekers can request their potential employer to reveal whether their information is being collected and analyzed by AI and what that information is. The New York law is the first iteration in the U.S. and a transformative moment in the rapidly evolving era of AI. This action is likely to serve as a guide for other local entities to ensure equity in hiring around the world. The District of Columbia and states like California, New Jersey, and Vermont are devising their own strategies to regulate hiring with AI. Likewise, Illinois and Maryland have enacted legislation that limits certain AI technologies for activities like workplace surveillance and job candidate screening. The European Union already has passed its own version of an AI act that not only governs the use of the technology in recruitment but also in other sectors like transportation and education. AI regulation is in its infancy, and such laws are likely to become more refined as time passes.
This question originally appeared on Quora – the place to gain and share knowledge, empowering people to learn from others and better understand the world.
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