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Regulators Paying More Attention to AI in Hiring, Promotions


Companies and their general counsel will soon face more regulators looking into how they hire, evaluate and promote employees when that process uses artificial intelligence.


Anthony Mingione, a labor and employment law partner in the New York office of Blank Rome LLP, discussed the city's legislative efforts to scrutinize AI testing.

He agreed with Friedman that "all roads lead to the employer, and this is implicit in this legislation." The new law, which Mingione said was the first of its type in the U.S., goes into effect Jan. 1.

"Unfortunately, this is not the most clear expression of rulemaking by the city," and many questions remain to be answered, he said. "We hope for a little grace from the [enforcement] agencies. People are trying."

Under the law, New York City employers that use "automated decision employment tools" must provide notice to the applicants and conduct independent bias tests of their process. The law will be overseen by the city's Department of Consumer and Worker Protection.

Department regulations require such tools to undergo a bias audit each year, and the results have to be summarized and made publicly available, Mingione said.

"We commonly refer to it as providing the evidence for a lawsuit against the employer," he joked.

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"Regulators Paying More Attention to AI in Hiring, Promotions," by Sue Reisinger was published in Law360 on November 22, 2022.