Many companies use Artificial Intelligence ("AI") and Automated Decision Systems ("ADS") to help quicken the pace involved in evaluating potential candidates for employment. These tools have the ability to: (1) scan a candidate's online presence; (2) evaluate resumes by searching for certain keywords; and (3) determine whether a candidate is suitable for a given position (among other things).
Businesses and employment agencies often assert that these technologies go one step further and reduce or limit the amount of implicit bias that might otherwise exist when human beings are sifting through candidates' resumes and job applications. However, others believe that there is a potential for bias that exists within the actual algorithms that make up such technologies. To address this purported bias issue, in January 2023, a new law that will take effect in New York City that many employers and employment agencies will need to comply with.
According to the bill's sponsors, the Law will require that a bias audit be conducted on all AEDTs prior to the use of said tools.
The Law will amend the Administrative Code of the City of New York and will be referred to as Subchapter 25, Automated Employment Decision Tools (the "Law").
According to the Law's definitions section, an AEDT includes "any computational process, derived from machine...
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