The law aims to reduce racial and gender bias in hiring practices by regulating the use of AI tools in job screenings, interview selections, and other related activities.

The New York City Department of Consumer and Worker Protection is making a move to reduce bias in hiring practices by tightening regulations around the use of Artificial Intelligence tools. On Thursday, the department officially adopted the final rules, which will take effect on July 5.

The law in question restricts the use of AI in employment decisions and requires employers and agencies to conduct bias audits and provide information to employees and candidates that AI tools are being used to evaluate them. The proposed law was initially introduced in September 2022 and was revised in December 2022 following a public hearing.

The regulations are an important step in the direction of making sure that decisions related to hiring, interviews and job screenings are free from any form of bias. The Department of Consumer and Worker Protection’s new regulations are effective from July 5.