AI & State Law


Hello, and welcome to LegalEase. Today’s topic is about AI and state law. We have discussed AI in the recent past – it is new, it is important, and it is starting to become heavily regulated.

What is AI? The National Artificial Intelligence Initiative Act of 2020 defines AI as a computer-based system that can make predictions, recommendations, and decisions based on a set of human objectives. We know that AI can influence our virtual and real environments. We also know from prior segments that AI is not immune from state or federal regulations, especially anti-discrimination regulations.

States are coming after AI. What does that mean? That means several states have implemented laws to prohibit the use of AI in the workplace unless the AI software has undergone bias audits. Some states include New York, California, New Jersey, and DC, and others are coming down the pipeline. The states have implemented these new laws to try to ensure that employment-based decisions remain unbiased.

Employers, what can you do? What does this mean for you?

  • Before you purchase AI software, ask the developer if the software has undergone bias testing. If you have already purchased AI software, ask the developer the same question.
  • Check your state law. What are the requirements in your state? Some states, like New York, are granting employers one year to undergo bias testing.
  • If you notice that your AI tool uses objectives that could be biased, then just don’t use it for that purpose, or audit the results. Let me give you an example. Let’s say that you’re using AI to select job candidates, but you notice that the criteria for selecting the candidates include facial recognition, speech patterns, speech tone, or body language, which could suggest bias. You may not want to use the software to select job ¬†candidates, or you can audit the final candidate selections made by the AI software to make sure the selections are based on true, unbiased criteria.

Employers should try to comply with the existing state and federal anti-discrimination laws because they apply to AI in the same way they apply to the regular employment setting.

Thank you for listening to LegalEase. If you have any questions or need help with your AI software, please give us a call. Our link is in our bio, and you can always go to our website to schedule a consultation.