www.foxbusiness.com Open in urlscan Pro
151.101.194.132  Public Scan

URL: https://www.foxbusiness.com/markets/nycs-new-ai-hiring-software-regulations-hit-pushback-business-groups.amp
Submission: On July 06 via manual from US — Scanned from US

Form analysis 1 forms found in the DOM

/

<form action="/" target="_top" class="menu-layer primary i-amphtml-form" novalidate=""><button id="menu-button" type="reset" on="tap:sidebar.toggle" class="close-button"></button>
  <div class="menu-items"><span><label class="menu-item item-layer-1 has-sub-level"><input type="checkbox">Personal Finance <div class="submenu menu-layer secondary">
          <div class="return-button"><span>Back</span></div>
          <div class="menu-items">
            <a href="/category/mortgage" class="menu-item item-layer-2">Mortgages</a><a href="/category/student-loans" class="menu-item item-layer-2">Student Loans</a><a href="/category/credit-cards" class="menu-item item-layer-2">Credit Cards</a><a href="/category/personal-loans" class="menu-item item-layer-2">Personal Loans</a><a href="/category/savings" class="menu-item item-layer-2">Savings</a><a href="/category/insurance" class="menu-item item-layer-2">Insurance</a><a href="/category/401k" class="menu-item item-layer-2">401k</a><a href="/category/modern-retirement" class="menu-item item-layer-2">Modern Retirement</a><a href="/category/tax-planning" class="menu-item item-layer-2">Tax Planning</a>
          </div>
        </div></label></span><span><label class="menu-item item-layer-1 has-sub-level"><input type="checkbox">Economy <div class="submenu menu-layer secondary">
          <div class="return-button"><span>Back</span></div>
          <div class="menu-items">
            <a href="/category/government-spending" class="menu-item item-layer-2">Government Spending</a><a href="/category/money-and-policy" class="menu-item item-layer-2">Money &amp; Policy</a><a href="/category/small-business" class="menu-item item-layer-2">Small Business</a>
          </div>
        </div></label></span><span><label class="menu-item item-layer-1 has-sub-level"><input type="checkbox">Markets <div class="submenu menu-layer secondary">
          <div class="return-button"><span>Back</span></div>
          <div class="menu-items">
            <a href="/category/stocks" class="menu-item item-layer-2">Stocks</a><a href="/category/us-markets" class="menu-item item-layer-2">US Markets</a><a href="/category/cryptocurrency" class="menu-item item-layer-2">Cryptocurrency</a><a href="/category/futures-commodities" class="menu-item item-layer-2">Futures &amp; Commodities</a><a href="/category/bonds" class="menu-item item-layer-2">Bonds</a><a href="/category/etfs" class="menu-item item-layer-2">ETFs</a><a href="/category/business-leaders" class="menu-item item-layer-2">Business Leaders</a><a href="/category/industries" class="menu-item item-layer-2">Industries</a><a href="/category/retail" class="menu-item item-layer-2">Retail</a><a href="/category/pre-markets" class="menu-item item-layer-2">Pre Markets</a><a href="/category/mutual-funds" class="menu-item item-layer-2">Mutual Funds</a>
          </div>
        </div></label></span><span><label class="menu-item"><a href="/watchlist" class="item-layer-1">
            Watchlist
          </a></label></span><span><label class="menu-item item-layer-1 has-sub-level"><input type="checkbox">Lifestyle <div class="submenu menu-layer secondary">
          <div class="return-button"><span>Back</span></div>
          <div class="menu-items">
            <a href="/category/entertainment" class="menu-item item-layer-2">Entertainment</a><a href="/category/rich-famous" class="menu-item item-layer-2">Rich &amp; Famous</a><a href="/category/travel" class="menu-item item-layer-2">Travel</a><a href="/category/cars" class="menu-item item-layer-2">Cars</a><a href="/category/airplanes" class="menu-item item-layer-2">Airplanes</a><a href="/category/food-drinks" class="menu-item item-layer-2">Food &amp; Drinks</a><a href="/category/arts" class="menu-item item-layer-2">Arts</a>
          </div>
        </div></label></span><span><label class="menu-item item-layer-1 has-sub-level"><input type="checkbox">Real Estate <div class="submenu menu-layer secondary">
          <div class="return-button"><span>Back</span></div>
          <div class="menu-items">
            <a href="/category/personal-real-estate" class="menu-item item-layer-2">Personal Real Estate</a><a href="/category/commercial-real-estate" class="menu-item item-layer-2">Commercial Real Estate</a><a href="/category/luxury-properties" class="menu-item item-layer-2">Luxury Properties</a>
          </div>
        </div></label></span><span><label class="menu-item item-layer-1 has-sub-level"><input type="checkbox">Tech <div class="submenu menu-layer secondary">
          <div class="return-button"><span>Back</span></div>
          <div class="menu-items">
            <a href="/category/digital" class="menu-item item-layer-2">Digital</a><a href="/category/social-media" class="menu-item item-layer-2">Social Media</a><a href="/category/gadgets" class="menu-item item-layer-2">Gadgets</a><a href="/category/business-tech" class="menu-item item-layer-2">Business Tech</a><a href="/category/health-care-tech" class="menu-item item-layer-2">Healthcare Tech</a><a href="/category/future-tech" class="menu-item item-layer-2">Future Tech</a><a href="/category/artificial-intelligence" class="menu-item item-layer-2">AI</a><a href="/category/space" class="menu-item item-layer-2">Space</a>
          </div>
        </div></label></span><span><label class="menu-item"><a href="/video" class="item-layer-1">
            Video
          </a></label></span><span><label class="menu-item"><a href="//radio.foxnews.com/podcast" class="item-layer-1">
            Podcasts
          </a></label></span></div>
</form>

Text Content

Personal Finance
Back
MortgagesStudent LoansCredit CardsPersonal LoansSavingsInsurance401kModern
RetirementTax Planning
Economy
Back
Government SpendingMoney & PolicySmall Business
Markets
Back
StocksUS MarketsCryptocurrencyFutures & CommoditiesBondsETFsBusiness
LeadersIndustriesRetailPre MarketsMutual Funds
Watchlist Lifestyle
Back
EntertainmentRich & FamousTravelCarsAirplanesFood & DrinksArts
Real Estate
Back
Personal Real EstateCommercial Real EstateLuxury Properties
Tech
Back
DigitalSocial MediaGadgetsBusiness TechHealthcare TechFuture TechAISpace
Video Podcasts
Close the sidebar Close the sidebar
Fox Business
☰
Artificial intelligence
Published July 6, 2023 2:00am EDT


NYC'S NEW AI HIRING SOFTWARE REGULATIONS HIT WITH PUSHBACK FROM BUSINESS GROUPS


NEW LAW REQUIRES BUSINESSES TO AUDIT AI HIRING TOOLS FOR RACIST OR SEXIST BIASES

 * 
 * 
 * Comments
 * 

By Breck Dumas FOXBusiness
Artificial intelligence will affect every aspect of life: Eric Hippeau

Lerer Hippeau Ventures managing partner Eric Hippeau gives his take on how
investors should respond to the development of A.I. on The Claman Countdown.

A new law in New York City requires any employer that uses artificial
intelligence-powered hiring software to first have the tool assessed for any
racist or sexist biases against candidates, and major business groups are
pushing back against it.

Local Law 144, which went into effect Wednesday, prohibits employers from using
automated employment decision tools (AEDT) for screening candidates until the
company has had the tool analyzed by an independent auditor for potential bias
and publicly posts the results.

The new law passed in 2021 also requires employers in the city that use machine
learning or AI tools for hiring decisions to send a notice to any New York
City-based candidates informing the job-seekers that an AEDT was used.



New York City's new law regulating the use of AEDT hiring tools is believed to
be the first citywide effort to crack down on AI use in the employment process.
(ANGELA WEISS/AFP via Getty Images / Getty Images)

The new regulations are enforced by New York City's Department of Consumer and
Worker Protection (DCWP), which explains on its website the audits on AEDT tools
must be conducted at least once a year and "[a]t a minimum, an independent
auditor’s evaluation must include calculations of selection or scoring rates and
the impact ratio across sex categories, race/ethnicity categories, and
intersectional categories."

AI INTERVIEWS WILL BE USED BY 43% OF COMPANIES BY NEXT YEAR, SURVEY FINDS

Any company busted violating the new law faces a fine of up to $500 for the
first violation, and up to $1,500 for each subsequent violation. The DCWP
instructs anyone seeking to file a complaint of a potential violation of the new
AI hiring tool regulations to visit the department's website or call 311, and
claims of discrimination involving AEDT's should be directed to the NYC
Commission on Human Rights.



AEDTs are not new, but the emergence of generative artificial intelligence tools
has put regulators on alert that the latest technology could hold biases that
could violate anti-discrimination laws. (iStock / iStock)

AEDTs have been around for years and are used by companies and employment
agencies to increase efficiency in the hiring process, but experts warn their
use can expose firms to liability for violating Title VII or other
anti-discrimination laws if the products are found to hold bias against a
protected class.

The recent emergence and rapid adoption of generative AI tools like OpenAI's
ChatGPT has sparked fears that the new tools could create more risk in the
hiring process, and NYC's new law comes as an array of federal agencies examine
how the technologies are impacting the way employment decisions are made and
ramping up efforts to ensure companies are complying with federal law.

AI IS HERE TO STAY; IT'S TIME TO UPDATE YOUR HR POLICIES



But NYC's Local Law 144 is believed to be the first effort by a city to impose
AI-related regulations, and one Big Apple business group says it is a mistake.

"This is just another top-down burdensome regulation that threatens to expose
businesses to frivolous lawsuits based on manufactured racism concerns," Job
Creators Network president and CEO Alfredo Ortiz told FOX Business in a
statement. 

"Nobody wants racism or sexism in the hiring process, but analyzing automated
hiring processes for racial or sexual disparities will result in trumped-up
findings of business discrimination where none occurred," Ortiz said. "New
York's City Council should repeal such big government actions that reduce
entrepreneurship to meaningfully help minorities improve their economic
opportunity."



The New York City Council attend the 2023 New York City Pride March on June 25,
2023 in New York City. The city imposed a new law this week requiring companies
to have a bias audit conducted before using an AI or machine learning tools in
the hiring … (Rob Kim/Getty Images / Getty Images)

The Society for Human Resource Management (SHRM) has also come out against Local
Law 144 and the fines employers could face over potential violations.

"SHRM is committed to improving opportunity and equity in the hiring process,
performance management and other areas of HR – and that includes
the employment of any emerging technology," the group told FOX Business in a
statement reacting to the new law. "We agree that guardrails for AI are
necessary; however, we do not support overregulation at the cost of workforce
innovation and optimization."

GET FOX BUSINESS ON THE GO BY CLICKING HERE



The New York City Council did not immediately respond to FOX Business' request
for comment on the new law and its potential impact.



Load more..


Personal Finance
 * Mortgages
 * Student Loans
 * Credit Cards
 * Personal Loans
 * Savings
 * Insurance
 * 401k
 * Retirement
 * Tax Planning

Economy
 * Government Spending
 * Money & Policy
 * Small Business
 * Inflation

Markets
 * Stocks
 * US Markets
 * Cryptocurrency
 * Futures & Commodities
 * Bonds
 * ETFs
 * Business Leaders
 * Industries
 * Retail
 * Pre-Markets
 * Mutual Funds

Watchlist
Lifestyle
 * Entertainment
 * Rich & Famous
 * Travel
 * Cars
 * Airplanes
 * Food & Drinks
 * Arts

Real Estate
 * Personal
 * Commercial
 * Luxury Properties

Tech
 * Digital
 * Social Media
 * Gadgets
 * Business Tech
 * Healthcare Tech
 * Future Tech
 * AI
 * Space

Sports
 * NFL
 * NBA
 * MLB
 * NASCAR
 * Boxing
 * Soccer
 * Golf
 * Tennis

Opinion
Video
About
 * Channel Finder
 * Jobs
 * Terms of Use
 * Updated Privacy Policy
 * FAQ
 * Media Relations
 * Corporate Information
 * Closed Captioning Policy
 * Accessibility Statement
 * Fox News
 * Fox Nation
 * Fox Business Go
 * Apps & Products

 * Facebook
 * Twitter
 * RSS

Fox Business
 * New Terms of Use
 * New Privacy Policy
 * Your Privacy Choices
 * Help
 * Closed Captioning Policy

This material may not be published, broadcast, rewritten, or redistributed.
©2023 FOX News Network, LLC. All rights reserved. All market data delayed 20
minutes.