NYC 144 AI Law Overview

The New York City Local Law 144, or NYC 144 AI Law, is a groundbreaking legislation requiring businesses to disclose the use of Artificial Intelligence (AI) and Automated Decision Systems (ADS) in their operations. This law significantly impacts the Human Resources (HR) sector, where AI and ADS have been increasingly adopted for various functions.

Key effects of the NYC 144 AI Law on HR include:

  1. Transparency: The law mandates that companies disclose when and how they are using AI in HR processes such as recruitment, employee evaluation, and other decision-making processes. This brings a level of transparency that allows applicants and employees to understand why certain decisions were made.

  2. Fairness and Bias Scrutiny: With AI algorithms now required to be more transparent, there is an increased opportunity to examine these systems for bias or unfair practices. This allows companies to address potential issues and ensures that decisions are made equitably.

  3. Third-Party Audits: The law requires companies to undergo external audits of their AI and ADS, scrutinizing the data used, how the system learns from this data, and the decisions it makes. This allows for independent verification of the fairness and transparency of the systems in use.

In summary, the NYC 144 AI Law brings about significant transparency and fairness in the use of AI and ADS within HR. It holds companies accountable for their use of such technologies, ensuring that their systems are fair, unbiased, and transparent in their decision-making processes.

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