NYC's new AI hiring software regulations hit with pushback from business groups

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Businesses in New York City now must prove any artificial intelligence-driven hiring software they use does not have any racist or sexist biases under a new law.

Lerer Hippeau Ventures managing partner Eric Hippeau gives his take on how investors should respond to the development of A.I. on The Claman Countdown.-powered hiring software to first have the tool assessed for any racist or sexist biases against candidates, and major business groups are pushing back against it.

The new law passed in 2021 also requires employers in the city that use machine learning or AI tools for hiring decisions to send a notice to anyNew York City's new law regulating the use of AEDT hiring tools is believed to be the first citywide effort to crack down on AI use in the employment process.

AEDTs are not new, but the emergence of generative artificial intelligence tools has put regulators on alert that the latest technology could hold biases that could violate anti-discrimination laws.

 

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