Alert
Action from federal, state and local legislatures and regulators signals a widespread effort to try to prevent employment discrimination caused by AI and algorithmic decision-making tools.
The U.S. Equal Employment Opportunity Commission’s (EEOC) draft strategic enforcement plan makes clear that companies using AI in making employment decisions will be subject to increased scrutiny and potential penalties.
Companies that use AI and automated systems should draft well-defined policies and procedures regarding the use of AI and conduct annual bias audits to ensure that the use of such technology does not result in the perpetuation of bias and stereotypes.
According to a 2022 survey from the Society for Human Resource Management, approximately one in four organizations use automation and/or AI to support employment-related activities, such as recruitment and hiring. AI tools used in employment decision-making include chatbots that guide applicants through the application process, algorithms that screen resumes and predict job performance, and even facial recognition tools used in interviews to evaluate a candidate’s attention span. For employers, these tools may offer an efficient and effective way to recruit promising talent, but federal, state and local governments are increasingly focused on the potential for discrimination.
Title VII prohibits employment discrimination on the basis of race, color, religion, sex (including pregnancy, sexual orientation...
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