Many employers are turning to artificial intelligence (AI) tools like resume scanners, chatbot interviewers and personality tests to help them weed out candidates and make the hiring process more efficient. In response, many jurisdictions are proposing and passing laws regulating the use of AI in the employment context. These laws prohibit employers from using automated employment decision tools (AEDT) unless they have been subject to a bias audit, the information about the bias audit is publicized and notices have been provided to employees or candidates.

Some of these laws, such as the one that became effective in New York City last summer, are drafted such that the exceptions essentially swallow the rule. The proposed New York state bills close that loophole, applying onerous requirements on every employer who uses AI to assist them in their workplace decisions. While the New York City law appears to not go far enough and the future of the proposed New York state law is uncertain, employers should remember that the federal laws against discrimination still apply to employment decisions.