NYC’s New Rules for AI-Powered Hiring

By: James Flippin · July 06, 2023 · Reading Time: 3 minutes

Meet the New Boss

Artificial intelligence has changed the hiring game, helping companies streamline the recruitment process with high-tech efficiency. The growing use of AI tools in hiring, from resume screening to matchmaking algorithms, has transformed recruitment across industries.

But it isn’t just helping applicants catch the eye of hiring managers. AI-powered HR has caught the eye of regulators too.

New York City is rolling out new legislation to rein in the influence of AI on HR. NYC’s fresh legislation marks a significant shift in the burgeoning practice. Now, companies must think twice about how they employ these digital aides.

Gatekeeping the Gatekeepers

In the Wild West of AI-facilitated hiring, NYC’s Department of Consumer and Worker Protection is the new sheriff in town.

Starting this week, the department will enforce a unique law targeted at preventing AI bias in the workplace. Employers who utilize AI and algorithmic tools for hiring and promotion decisions will now face a transparency mandate, including annual audits for potential machine bias.

The law has two goals: to shed light on AI’s role in hiring decisions and to ensure its impartiality. It could mark a major leap toward making the virtual hiring landscape more understandable and accountable.

Algorithm vs. Advocacy

Despite the significant step, advocates for the ethical use of AI are voicing concerns, claiming the law might not fully shield job candidates. They suggest that, unless the legislation is foolproof, developers could find ways to navigate through the audits, possibly still leaving room for bias.

On the other side of the debate, AI proponents worry the legislation could hamper technological innovation and add unnecessary bureaucracy to the hiring process.

Despite these concerns, states like Illinois, Maryland, California, New Jersey, Vermont, and even the District of Columbia are making strides toward similar regulations. The European Union also appears poised to follow suit. Job seekers in these areas may soon take comfort in knowing the AI hiring managers have managers too.

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