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The Effects of AI on Employment Law

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Employers across the nation are exploring new ways to utilize Artificial Intelligence (AI) to increase efficiency and productivity. Some employers are going so far as turning to AI for employment decisions regarding hiring, termination, compensation, and promotion.

In October 2022, the Biden Administration presented The Blueprint for an AI Bill of Rights (“Blueprint”), which outlines principles to guide the use of AI. A number of federal agencies, including the Equal Opportunity Commission (EEOC), have also set forth guidelines regarding the use of AI.

Although the Blueprint is not yet adopted by any state, California proposed a bill which looks to provide safeguards to employees working for employers who utilize AI systems. Among other things, California’s proposed bill would allow employees to sue employers for any “discriminatory impact” resulting from the use of AI.

While the bill will likely face a number of challenges and revisions, it will be interesting to see if other states, including New Jersey, follow suit and address the impacts of AI on employment decisions.