The New York City Council voted 38-4 on November 10, 2021 to pass a bill that would require hiring vendors to conduct annual bias audits of artificial intelligence (AI) use in the city’s processes and tools. Companies using AI-generated resources will be responsible for disclosing to job applicants how the technology was used in the hiring process, and must allow candidates options for alternative approaches such as having a person process their application instead. For the first time, a city the size of New York will impose fines for undisclosed or biased AI use, charging up to $1,500 per violation on employers and vendors. Lapsing into law without outgoing Mayor DeBlasio’s signature, the legislation is now set to take effect in 2023. It is a telling move in how government has started to crack down on AI use in hiring processes and foreshadows what other cities may do to combat AI-generated bias and discrimination.
