New York City has passed a law that requires companies using artificial intelligence (AI) software in hiring to notify candidates of its use, have independent auditors annually check their technology for bias, and face fines for any violations. The law has been criticised by public interest groups for not going far enough and by business groups for being impractical. However, the law is set to apply nationally, with at least four states also working on laws relating to AI in hiring. Illinois and Maryland have already enacted laws limiting the use of specific AI technologies. Critics point out that regulating AI in the context of federal workplace laws is challenging, because existing Equal Employment Opportunity Commission rules date from the 1970s. The city’s law defines an “automated employment decision tool” as technology that assists or replaces discretionary decision making but its requirements are seen as narrow by some critics. Companies that sell AI software have embraced regulation because it provides proof that their technology increases opportunity for workers and expands the pool of job candidates for businesses.
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