As artificial intelligence becomes more integrated in organizations, state and local lawmakers are working to establish new compliance frameworks to regulate AI's use by employers. This evolving landscape presents a significant challenge for HR professionals.

Currently, several key pieces of legislation are shaping the future of AI in the workplace:

• California: The state has implemented two significant AI frameworks. The first, which took effect Oct. 1, clarifies that existing anti-discrimination laws apply to AI-driven employment decisions. The second, from the California Privacy Protection Agency, establishes privacy rules for automated decision-making technology.
• Colorado: The Colorado AI Act, whose effective date has been delayed to mid-2026, designates employment decisions as "consequential." This requires employers using "high-risk" AI to actively prevent algorithmic discrimination by implementing risk-management programs, conducting impact assessments, and providing clear notices to candidates and employees.
• New York City: Local Law 144 mandates that employers using automated employment decision tools must conduct an independent bias audit annually.

These are just some of the state and local AI laws enacted. Other states with laws regulating AI include Illinois, Tennessee, and Texas.

While federal legislation focused on AI has not been enacted, existing civil rights laws, such as Title VII of the Civil Rights Act of 1964, may still apply to AI-driven...

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