In an effort to regulate the use of AI in hiring, a new law in New York City, requiring employers to audit and notify applicants about the use of automated employment decision tools (AEDTs), will be enforced from yesterday [5 July 2023].

The law took effect in January this year, with rules added in April. But enforcement, by NYC’s Department of Consumer and Worker Protection (DCWP), was possible from Wednesday this week.

The law defines AEDTs as “any computational 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 for employment decisions that impact natural persons”. 

According to US-based online news service HR Dive, under the rule, NYC employers may not use an AEDT if the tool has not been audited for bias, and use of an AEDT may not continue if the tool has not been audited for more than a year.

Employers and agencies must publicly disclose the data of the most recent bias audit and the summary of results from the audits. They must also notify applicants, candidates and employees about the use of an AEDT at least 10 business days before the tool is used. The notice must include the job qualifications and must allow applicants and candidates to request an alternative selection process or accommodation if such an alternative is available, HR Dive said. 

Technology news service VentureBeat said: “The bottom line: New York City employers will be the ones taking on compliance obligations around these AI tools, rather than the software vendors who create them.”

It is believed to be the first law of its kind in the US.

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