The use of artificial intelligence in hiring and recruiting has grown steadily and is now ubiquitous. Reports indicate that approximately 90% of employers use AI to review and evaluate resumes, and more than 30% use AI to automate candidate searches and customize job postings.
The legal landscape governing AI in hiring, however, has been far less stable—much like many other areas of employment law in recent years. Following what has become a well-established trend, the past year has brought federal deregulation and state efforts to fill the void. This article provides an overview of the new landscape and practical guidance for employers looking to stay ahead of the curve.
The federal retreat
Under the Biden administration, the Equal Employment Opportunity Commission announced in 2021 an “Initiative on Artificial Intelligence and Algorithmic Fairness,” promising to scrutinize the impact and fairness of AI and algorithmic decision-making in employment decisions. EEOC investigations and enforcement actions followed. President Biden signed an executive order establishing a framework for responsible AI development, and the EEOC issued guidance for employers on AI use, focusing on the potential disparate impact AI may have on protected groups.
That approach shifted dramatically on April 23, 2025, when President Trump signed an executive order disavowing federal reliance on disparate impact liability “in all contexts to the maximum degree possible.” Executive Order 14281, “...
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