As companies increasingly rely on artificial intelligence (AI) for hiring and promotions, concerns about bias and fairness have led to new state-level regulations. AI systems, while efficient, can unintentionally reinforce discriminatory patterns, particularly against protected groups. In response, New Jersey and New York have introduced frameworks aimed at ensuring AI tools in employment decisions are used ethically and transparently, addressing issues like disparate impact and algorithmic accountability.
In a recent Bloomberg Law article, Gordon Rees Scully Mansukhani Associate Luis Ayala explores these regulatory shifts, focusing on New Jersey’s guidance under its Law Against Discrimination and New York’s proposed Artificial Intelligence Act. Ayala discusses how these regulations require employers to assess AI’s impact on diverse candidate pools, conduct regular audits, and ensure transparency with applicants. His analysis underscores the importance of compliance for companies to reduce legal risks while promoting fairness in AI-driven hiring.
Ayala, based in the Livingston, New Jersey office of GRSM, focuses on employment law and insurance defense, providing counsel and defense to employers on issues like discrimination, wage disputes, and wrongful termination. He represents clients in both litigation and regulatory compliance, advising on wage laws, employee classification, and performance management. He also focuses on emerging issues, such as cryptocurrency compensation and its impact on wage regulation.
Read the full article in Bloomberg Law.