Artificial Intelligence (AI) can be a boon and a bane for employees and employers. It helps boost productivity and increase profits, but it also increases layoffs and liability risk. With such a double-edged value proposition, employers need to consider its impact on their company’s operations.
If you operate a business, you may want to consider a few things before using AI in your business process.
Legal compliance
As the use of AI spreads, various government agencies will start passing laws regulating it. Already, New York has passed a law regulating the use of AI in hiring. This law requires companies using AI in their hiring processes to submit to a third-party audit to prove that their use of AI is not discriminatory or prejudicial. They must also tell job applicants they are using AI in hiring. Failure to comply will result in fines.
Further guidance from various government agencies
The Department of Justice (DOJ), Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB) and the Equal Employment Opportunity Commission (EEOC) issued a joint statement regarding their position on the use of AI by corporations. In their joint statement, each agency reiterated that existing regulations, while not explicitly mentioning AI, still state what actions violate federal law. In other words, any action already regarded as illegal in existing laws will still be unlawful whether a human or AI does it.
Keeping a proactive approach
Navigating the current legal landscape of AI can be daunting. Because of the speed of AI development and the delayed reaction of policymakers, running afoul of the law is a distinct possibility at any point in a business’ use of AI. Staying informed and proactive in your approach regarding AI applications will help your business comply with relevant employment laws. Consider seeking legal guidance before using AI or any automated systems.
