Navigating the Rise of Generative AI and Automated Employment Decision Tools: New York City’s LL 144

While information systems dedicated to human resources management (HRIS) have long used artificial intelligence (AI) and machine learning (ML) technologies, the rise of generative AI is reshuffling the cards. .

With its local law 144 [PDF]New York City is among the first to want to set the rules for automated employment decisions.

LL 144 will require that an audit for potential bias be performed before an automated decision tool (“AEDT”) is put into production by an employer or placement agency. Candidates, for their part, must be informed of the use of such a tool to assess, classify and decide between them.

From boosted HRIS to machine learning

What is an “AEDT” tool (automated employment decision tool) under LL 144?

Such a system includes “any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence (AI), that generates a simplified output, including a score, classification or recommendation, used to substantially assist or replace discretionary decision-making that impacts individuals in employment matters. »

The city’s Department of Consumer and Worker Protection (DCWP) proposed an early version of the draft last September. The text, which provides for penalties for breaches, was revised in December, following a public hearing.

The local law was due to come into force last January. The DCWP has indicated last week that it will control its effective application from July 5, 2023.

The ambition is part of a more global trend aimed at supervising developments in AI, generative artificial intelligence in particular.

The rise of OpenAI’s ChatGPT having upset the agenda.

The United States recently opened a public consultation on a potential liability regime for artificial intelligence.

China, which is also investing billions in AI, has declared its intention to regulate the rapidly expanding sector.

Europe, through its European Data Protection Board (EDBP), has created a working group which will “promote cooperation and exchange information on possible enforcement measures” carried out in this area by the authorities. concerned.

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