Job seekers in New York City will soon be able to learn about a hitherto secret aspect of their application process – that is, if and how artificial intelligence is utilized to influence hiring choices.
The Big Apple will take the lead in regulating the use of AI in hiring thanks to the city’s new automated employment decision tools law, which was passed in 2021 and is set to go into effect on July 5. States and other cities are widely anticipated to progressively follow suit.
The carefully crafted rule is intended to counteract prospective uses of AI that might materially harm employees’ livelihoods. In particular, it mandates that employers disclose to candidates the fact that they rely on AI techniques to make recruiting choices.
The new law also requires companies to do yearly impartial “bias audits” of the technology or software they utilize in order to disclose the ways in which the AI may be prejudiced against particular applicant types.
While saving businesses time, automated decision-making has come under fire for perpetuating prejudices and, in some cases, favoring white males over women and people of color. According to the legislation, utilizing AI tools alone is insufficient to require disclosure; they must also have a significant impact on employment decisions in order for the law to be relevant.
The first infraction carries a $500 punishment; successive crimes can result in penalty of up to $1,500.
However, potential employees’ options if they don’t enjoy being assessed by AI are somewhat limited. While an AI screening declaration “must include instructions for how an individual can request an alternative selection process or a reasonable accommodation under other laws, if available,” the employing organization isn’t compelled by law to actually utilize a different screening procedure.
