New York City has implemented regulations governing the use of artificial intelligence (“AI”) and automated decision-making tools in the employment space.

New York City Local Law 144 was set to go into effect on January 1, 2023, but after receiving numerous responses during the public comment period, the New York City Department of Consumer and Worker Protection (DCWP) delayed the effective date to July 5, 2023.

Under the law, employers are prohibited from using Automated Employment Decision Tools (AEDTs) for employment decisions unless AI has undergone a bias audit and the results are publicly disclosed on the company’s website.  Additionally, employers must inform individuals about how they can request an alternative selection process or a reasonable accommodation under other laws, if available.   

New York City’s new AI law is part of a growing trend of AI bias laws.  As we reported on here, the EEOC launched its Artificial Intelligence and Algorithmic Fairness Initiative and recently provided guidance on the use of AI in employment selection procedures.