New AI Rules: NYC First to Mandate Audit

After years of anticipation, a patchwork of AI legal standards has arrived. This article series looks at five regulatory developments in 2022 that address AI-enabled employment decision tools, now used by 75 percent of companies. Developments include recent federal guidance from the EEOC and DOJ, draft regulations in California, and laws in Maryland, Illinois, and New York City. The series starts with this look at New York’s first-in-the-U.S. requirement that companies audit the AI they use for hiring, assessment and promotion. The article provides insights on the law’s provisions, highlights the imprecise drafting and apparent gaps that are inspiring laments comparable to lawyers’ CCPA woes, and offers suggestions for companies’ compliance, with commentary from AI law practitioners at Baker McKenzie, Davis Wright Tremaine, Hogan Lovells and Jackson Lewis. See “AI Compliance Playbook: Understanding Algorithm Audits” (Apr. 28, 2021).

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