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A Hiring Law Blazes a Path for AI Regulation

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Empire State Building

New York City's approach to regulating AI could become a model for others.

Credit: Getty Images

The New York City government in July will begin enforcing a law passed in 2021 related to the application of artificial intelligence technology in hiring and promotion decisions.

The law requires companies using AI software in hiring to notify candidates that an automated system is being used. It also requires companies to have independent auditors check the technology annually for bias.

New York City's approach represents an important front in AI regulation. It applies to companies with workers in New York City, but labor experts expect it to influence practices nationally. Even before it takes effect, the law has been a magnet for criticism. Public interest advocates say it doesn't go far enough, while business groups say it is impractical.

The complaints from both camps point to the challenge of regulating AI. Some critics say the law is overly sympathetic to business interests. "What could have been a landmark law was watered down to lose effectiveness," said Alexandra Givens, president of the Center for Democracy & Technology.

From The New York Times
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