NYC law will regulate AI use in hiring

New York City-based organizations will soon be subject to regulations if they use artificial intelligence in their hiring practices. 

NYC 144 was passed in 2021 and will go into effect on July 5, according to employment and labor law firm Littler. The law requires employers to notify candidates if they are using AI-enhanced hiring tools and give candidates the option to learn which personal data is collected. 

The law also  requires these companies to hire independent auditors to annually review their AI tools for potential bias; the reports of those audits must be published publicly. 

New York City is one of many jurisdictions enacting laws to regulate workplace AI use. Illinois and Maryland have already passed regulations and California, New Jersey, Vermont and Washington, D.C. are in the process of doing the same, Fortune reported May 30. 

These decisions come as AI expands into more industries — healthcare included — and departments, such as human resources. A recent survey of 300 U.S. human resources professionals found that 98 percent "at least somewhat" rely on HR software and algorithms when making decisions to cut labor costs. 

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