New AI Rules: States Require Notice and Records, Feds Urge Monitoring and Vetting (Part Two of Three)

A patchwork of artificial intelligence (AI) legal standards emerged this year to address employers’ mass adoption of AI software, which is now used by 75 percent of companies to aid hiring and promotion choices. This second article in a three-part series analyzes laws in Maryland and Illinois; federal guidance from the EEOC and DOJ; and draft regulations in California, with commentary about the connections between those standards from AI law practitioners at Baker McKenzie, Davis Wright Tremaine, Jackson Lewis and Ogletree Deakins. The first article discussed New York’s first-in-the-U.S. requirement that companies audit their use of those AI tools. The third article will provide survey findings about companies’ existing AI compliance efforts and offer recommendations for companies to address the new requirements and avoid enforcement like the DOJ’s June 21, 2022, discriminatory-algorithm settlement with Meta. See our three-part series on AI for fund managers: “How to Use It to Streamline Operations” (Sep. 5, 2019); “Government Guidance, Service-Provider Negotiations and Risks of Bias” (Sep. 12, 2019); and “Automating the Legal Department and Maintaining Privacy” (Sep. 19, 2019).

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