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Tuesday, June 24, 2025

To AI or Not to AI? The Use of AI in Employment Decisions - The National Law Review

Even just a few years ago, the concept of using artificial intelligence (AI) in everyday life was a novel, if somewhat intimidating, concept. But from Google’s AI overview to Microsoft’s Copilot, many of us use AI daily to help increase efficiency and streamline certain processes. If you are an employer using AI to sort through job applications and resumes, to make decisions based on background check information, or to sort through criteria for promotion or termination decisions, you need to consider the legal ramifications, which increasingly involve federal and state laws.

The State and Local Legal Landscape

Some state legislatures and local governments, in attempting to get ahead of any issues, have started considering or issuing guidance or legislation aimed at preventing employment discrimination resulting from the use of AI tools. For example, New Jersey has issued guidance indicating that the use of AI in employment decisions will be subject to the same antidiscrimination laws as non-AI decisions and that employers will be liable for discrimination caused by AI tools they did not design. Both Colorado and Illinois have passed laws, effective in 2026, prohibiting employers from using AI in a discriminatory manner and requiring certain disclosures when using AI in certain employment decisions. New York City passed a local law, effective July 2023, that regulates the use of AI in employment decisions. Maryland and California have proposed but have not yet passed AI...



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