New York bans biased AI hiring systems

The New York City Council passed a law banning the use of AI-based hiring systems that do not undergo annual discrimination audits for race or gender. Associated Press.

The law will require employers to disclose information about the use of automated resume-processing systems. It will also give applicants the option to have their candidacy considered by a human reviewer.

The authors of the bill say the measures will help reduce distortions in the applicant pool and in the demographics of those hired by AI-based systems.

Violations carry fines of up to $1,500. If Mayor Bill de Blasio signs the measure, it would take effect in 2023.

Business advocacy groups welcomed the law’s passage. They say the transparency of the tools is vital for both employers and job seekers.

According to New York University professor Julia Stoyanovich, the best part of the law is the information-disclosure requirement, so that candidates know what is evaluating their data and where their personal data goes. However, she notes concerns about the effectiveness of auditing AI systems:

“The burden of these audits lies on tool providers to demonstrate compliance with a fairly minimal set of requirements, which are very easy to meet.”

Alexandra Givens of the Center for Democracy and Technology also argues the law does not protect all vulnerable populations. She notes the document does not account for other biases, such as ageism.

Earlier in September, the California Senate passed a law regulating workforce performance algorithms.

In July, New York enacted a law requiring biometric data privacy.

In April, an American senator introduced a bill, prohibiting government agencies from purchasing Clearview AI data without a court order.

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