New AI Rules: NYC First to Mandate Audit (Part One of Three)

After years of anticipation, a patchwork of artificial intelligence (AI) legal standards has arrived. This series looks at five regulatory developments in 2022 that address AI-enabled employment decision tools, now used by 75 percent of companies. Developments include recent federal guidance from the EEOC and DOJ; draft regulations in California; and laws in Maryland, Illinois and New York City. This first article in the series examines New York’s first-in-the-U.S. requirement that companies audit the AI they use for hiring, assessment and promotion. The article offers insights on the law’s provisions; highlights the imprecise drafting and apparent gaps that are inspiring laments comparable to lawyers’ woes under the California Consumer Privacy Act of 2018; and offers suggestions for entities’ compliance, with commentary from AI law practitioners at Baker McKenzie, Davis Wright Tremaine, Hogan Lovells and Jackson Lewis. See “The Current State and Future of AI Regulation” (May 14, 2020).

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