Q&A: The NYC AI Audit Law

Isabelle Bichler
Reading Time: 2 minutes

For organizations using AI in their hiring processes, prepping for 2023 means evaluating compliance with a new law that will take effect in New York City in January, but which will impact millions of HR leaders and job candidates everywhere

Local Law 144, or the NYC AI Audit Law, issues updated guidelines for employers using AI in hiring. Part of a quickly growing practice, AI tools are in high demand for companies looking to speed up preliminary candidate screening and enable efficiency in the hiring process. To avoid introducing unintended bias into those actions, however, the AI must be responsible–meaning fully explainable machine learning systems structured to avoid biases that could skew results unfairly. 

With only weeks to go until the NYC AI Audit Law kicks in, there are still plenty of unanswered questions. In this vidcast, retrain.ai Co-founder and COO Isabelle Bichler-Eliasaf speaks with Rob Szyba, partner and employment attorney at Seyfarth Shaw about aspects of the law that aren’t quite clear yet, including:

  • What specifically defines an automated employment decision tool (AEDT)? How much weight is given to the AEDT as one part of a multi-level hiring process?  [Timestamp: 5:08]
  • Who is performing the mandatory AI bias audits required by the law?  [Timestamp: 10:01]
  • What accommodations are given to candidates who opt out of AEDT interview steps?  [Timestamp: 11:28]
  • How are candidates who opt out assured equal consideration?  [Timestamp: 12:38]
  • What happens to organizations in that are new to AI use in hiring and don’t necessarily have enough data to test their system by the time the law takes effect? Will they be considered in default?  [Timestamp 15:32]
  • The law applies in New York City, but what does that mean for businesses based outside of NYC who have offices or even remote workers based in the City?  [Timestamp 19:02]
  • How can those of us in the AI space convey the importance of ensuring that regulation helps the process without stifling innovation? That it protects AI’s ability to enhance the human workforce experience?  [Timestamp 25:06]

Additional Resources:

Not Headquartered in NYC? The New AI-based Hiring Regulations Will Likely Still Apply to You. Blog post

NYC AI Law Update – 4 Important Things You Need to Know Blog post

A New NYC Law Puts Pressure on Talent Intelligence: Will Your AI Solution Be Ready? Blog post

Responsible AI and the NYC Audit Law: What You Need to Know Before 2023 – On-demand webinar

Responsible AI: Why It Matters and What HR Leaders Need to Know – On-demand webinar

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