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New York’s Landmark AI Bias Law Prompts Uncertainty

Companies that use AI in hiring are trying to determine how to comply with a New York law that mandates they test their systems for potential biases.

Businesses and their service providers are grappling with how to comply with New York City’s mandate for audits of artificial intelligence systems used in hiring.

A New York City law that comes into effect in January will require companies to conduct audits to assess biases, including along race and gender lines, in the AI systems they use in hiring. Under New York’s law, the hiring company is ultimately liable—and can face fines—for violations.

But the requirement has posed some compliance challenges. Unlike familiar financial audits, refined over decades of accounting experience, the AI audit process is new and without clearly established guidelines.

The city law will potentially impact a large number of employers. New York City in 2021 had just under 200,000 businesses, according to the New York State Department of Labor.

The original article was posted by the Wall Street Journal.

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