AI Hiring Bias Laws Limited by Lack of Transparency in Tools

State lawmakers crafting statutes to fight artificial intelligence-based bias in employment decisions are struggling to pry open the black box of private companies’ AI tool usage.

Colorado and Illinois, where legislators passed laws this year regulating AI use for employment decisions, and others like Texas and California that are weighing them, require varying degrees of disclosure. It appears only one US jurisdiction, New York City, has mandated employers publicly post bias audits of their AI systems, but the city’s strict definition of automated decisions allowed most employers to determine the law doesn’t apply to them.

It’s proved difficult to ...