A growing number of employers are turning to artificial intelligence ("AI") tools to assist in recruiting and other employment decisions. According to Forbes, almost all Fortune 500 companies use talent-sifting software, and more than half of human resource leaders in the U.S. leverage predictive algorithms to support hiring. Widespread adoption of these tools has led to concerns from regulators and legislators that they may be inadvertently discriminating, for example, by:

• Penalizing job candidates with gaps in their resumes, leading to a bias against older women who have taken time off for childcare;
  
  
• Recommending candidates for interviews who resemble the company's current leadership, which is not diverse; or
  
  
• Using automated games that are unfairly difficult for individuals with disabilities to evaluate employees for promotions, even though they could do the job with a reasonable accommodation.

New York City is one of the first jurisdictions to pass a law aimed at reducing bias in automated employment decisions, which becomes effective on January 1, 2023. The Automated Employment Decision Tool Law ("AEDT") places compliance obligations on employers in New York City that use AI tools, rather than software vendors who create the tools. Similar laws are likely to be enacted in other jurisdictions. Accordingly, companies should pay close attention to any AI tools or algorithms being used to manage human capital to ensure that they are compliant with these emerging...

Read Full Story: https://www.mondaq.com/unitedstates/employee-rights-labour-relations/1212322/...