Up until now, employers have been able to use artificial intelligence (AI)-powered hiring and promotional tools without worry about compliance with AI-specific laws. On July 5, 2023, that changed. New York City passed Local Law 144, legislation restricting employers’ use of artificial intelligence-driven employment tools.
Local Law 144 prohibits employers from using an automated employment decision tool (“AEDT”)[1] in hiring, promotion, and other employment decisions, unless the employer first ensures that the tool has been audited for bias within the preceding year.
