Artificial Intelligence (AI) has enormous potential to make many operational tasks easier, including hiring and retention functions. Nonetheless, the technology – unchecked – could produce discriminatory outcomes. In response, New York City passed Local Law 144, which prohibits employers and employment agencies from using AI and algorithm-based technologies (referred to as AEDTs, or automated employment decision tools) for recruiting, hiring or promotion without those tools first being audited for bias. While enforcement of the law has been delayed multiple times pending finalization of the law’s implementing rules, on April 6, 2023 the Department of Consumer and Worker Protection (DCWP) published the law’s Final Rule. The law will now go into effect on May 6, and enforcement will begin on July 6.
The Final Rule is very similar to the December 2022 Proposed Rule, which BCLP reported on in January. However, there are some key differences.
Under the law, an “AEDT” is any process “derived from machine learning, statistical modelling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making.” The Final Rule broadens the definition of “machine learning, statistical modelling, data analytics, or artificial intelligence” by removing the requirement that such a technique must refine inputs and parameters by using cross-validation or...
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