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AI is being regulated during hiring process

The regulation of Artificial Intelligence (AI) during the hiring process represents a pivotal shift in how technology intersects with the realm of employment and recruitment. Governments and regulatory bodies are increasingly recognizing the need to establish guidelines to ensure fairness, transparency, and non-discrimination in AI-driven hiring practices. These regulations aim to address concerns such as bias in AI algorithms, which can inadvertently perpetuate inequalities based on gender, race, age, or other characteristics. By implementing standards for AI usage in recruitment, authorities are striving to protect candidates’ rights while enabling employers to leverage the efficiency and capabilities of AI. This regulatory environment ensures that the adoption of AI in hiring not only streamlines the recruitment process but also upholds ethical principles, promoting a more inclusive and equitable job market.

The passage of NYC 144 in July marked a significant step forward in the regulation of automated systems and artificial intelligence in the hiring process within New York City. This pioneering legislation acknowledges the growing reliance on sophisticated technologies like chatbot interviewing tools, resume scanning software, and other AI-driven platforms designed to streamline the recruitment and promotion processes. However, with the integration of such technologies comes the risk of embedded biases that could unfairly disadvantage candidates based on race, gender, or other protected characteristics.

NYC 144 addresses these concerns head-on by mandating a comprehensive framework for accountability and transparency among employers who employ these technological tools. Specifically, the law requires that any employer using automation or AI to assist in making hiring or promotion decisions must conduct annual audits of these tools. The purpose of these audits is to evaluate the software for any potential biases that could lead to race or gender discrimination. This proactive measure is aimed at identifying and mitigating any inadvertent prejudices encoded within the algorithms, thereby preventing them from influencing employment decisions.

NYC 144 stipulates that the results of these bias audits must be made publicly available, typically through publication on the employers’ websites. This requirement not only fosters transparency but also encourages companies to take a more rigorous approach in selecting and managing their AI tools. By having to publicly disclose the outcomes of bias audits, employers are likely to be more diligent in ensuring their technologies are as unbiased and equitable as possible.

The implications of this law extend beyond the immediate sphere of human resources and recruitment. It sets a precedent for how municipalities and perhaps, in the future, larger governmental bodies, can regulate the use of AI in various sectors to protect against discrimination and promote fairness. NYC 144 represents a critical acknowledgment that while AI and automation can offer significant benefits in efficiency and effectiveness, their deployment must be managed carefully to ensure they serve the interests of all individuals equally, without perpetuating existing societal inequalities.

However, few companies seem to be following it.

So why is it important that laws and regulations be followed? What is the purpose of regulations like this?

“It’s crucial for companies to follow regulations like NYC 144, these laws are designed to ensure fairness and prevent biases in hiring decisions made by automated tools. By auditing and publishing the results, companies demonstrate transparency and accountability, building trust with both employees and the public. Adhering to regulations not only avoids potential legal consequences but also promotes a workplace that values diversity and equality. At Iterate, we believe in responsible AI use, and following these regulations aligns with our commitment to ethical practices in technology,” shares Brian Sathianathan, CTO/CDO and Co-Founder of

The enactment of NYC 144, aimed at regulating AI in hiring processes, marks a significant milestone in the interplay between technology, ethics, and law. It signals a shift towards recognizing the profound impact of AI on employment and the imperative to balance the benefits of automation with the protection of individual rights. This legislation mandates companies to audit their AI-driven hiring tools for biases and to make these audits public, advocating for transparency and ethical standards in AI utilization. However, the noted lack of compliance among companies underscores challenges such as compliance costs, a misunderstanding of the law’s requirements, or a deficiency in enforcement mechanisms. This gap highlights the need for robust support, clear guidance, and strict oversight to ensure that the objectives of such regulations are met, reinforcing the idea that these laws are not mere formalities but crucial frameworks to guard against discrimination and promote equity.

The criticality of adhering to regulations like NYC 144 extends beyond legal compliance; it reflects a commitment to ethical business practices and the promotion of a diverse and equitable workplace. As Brian Sathianathan from points out, following these regulations aligns with a company’s dedication to responsible AI usage and demonstrates a broader societal responsibility. The challenge of ensuring compliance with such laws opens a dialogue about the role of technology in the workplace and the responsibility of companies to use it in a manner that benefits all members of society. It sets a precedent for how future technological innovations should be integrated into business practices—by prioritizing fairness, transparency, and accountability. This approach not only fosters trust between companies and their stakeholders but also contributes to building a more inclusive future where technology advancements are harnessed for the collective good, ensuring the digital transformation of the workplace serves everyone equitably.

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