HireVue and the NYC law on AEDT & AI regulation

July 7th, 2023
The HireVue Team

HireVue has consistently championed the ethical use of AI, advocating for regulatory guidance to guarantee its deployment aligns with moral principles. NYC local law 144 was enacted this week with the first-of-its-kind legislation requiring an annual audit, publication of the results, notice that an AEDT (automated employment decision tool) is being used, disclosure of data collection, and the option for candidates to request an accommodation or alternative selection process.

But while the law only applies to employers with geographical locations in NYC who hire NYC residents, all companies using or planning to use hiring technology should be thinking about what the law means for them going forward. 

We sat down with HireVue’s Dr. Lindsey Zuloaga, Chief Data Scientist, and Naziol Scott, General Counsel, to break down what the law says and what it means for all hiring teams building future hiring strategies.

What does the law say?

The New York Times describes the law as follows:

“The city’s law requires companies using A.I. software in hiring to notify candidates that an automated system is being used. It also requires companies to have independent auditors check the technology annually for bias. Candidates can request and be told what data is being collected and analyzed. Companies will be fined for violations.”

The law covers AI and AEDT tools, and involves 4 main themes in the law. Employers must:

  • Notify candidates that AI is being used
  • Perform bias audits of technology to support accountability
  • Publish the audit results
  • Provide candidate with instructions on how to request an alternative method

Scott reminds us that while the law primarily impacts local NYC-based candidates working in the city, the foundation of the law should garner attention from anyone working  in hiring and technology.

“All people should care because this is a first-of-its-kind piece of legislation and one that encompasses many emerging themes around AI. HireVue is proud to be at the forefront of this type of action, working alongside legislators and helping educate them on the themes while still maintaining innovation in the space.”

What does this mean for HireVue customers

HireVue has grounded the development of our tools in decades of preexisting labor laws, best practices in IO psychology, and scientific research to produce tools that are job-related, validated, and tested regularly and mitigated for bias—all concepts that go beyond what is in the NYC law. In 2019, we publically established our Guiding AI Principles when it comes to developing our suite of hiring tools: 

  • We are committed to benefitting society
  • We design to promote diversity and fairness
  • We design to help people make better decisions
  • We design for privacy and data protection
  • We validate and test continuously

Dr. Zuloaga emphasizes the importance of audits in technology saying, “We support having high standards in legislation—the same standards we’ve had for years. HireVue is at the forefront and we uphold ourselves to a high level and expect the same of everyone across the space.”

The biggest impact for hiring teams is the industry-disrupting requirement of a third-party audit—which takes time and money. HireVue’s AI technology has always been regularly audited internally and has been subject to several third party audits since 2020, and Dr. Zuloaga emphasizes the importance. 

“While the law places responsibility on employers to provide bias audit results, the results can come from a vendor’s third party auditor.” 

The law provides this option to employers and vendors, and we volunteer to do this on behalf of our customers.

And Scott reminds us that this law is just an extension of what HireVue has been doing all along.

“We’ve been able to develop the best-in-class approach to innovation that adheres to the compliance of laws already in effect, but we’ve gone beyond the requirements which allows our technology to quickly comply with the new laws being proposed and enacted.” 

Learn more about HireVue’s Ethical AI principles here and the HR industry’s first AI Explainability Statement here

The future of legislation

While the NYC law has been passed and is being enforced, companies across the globe should be preparing for what’s coming soon. 

“If you’re thinking about changes you need to make in 5-10 years, that’s too long. Start thinking 2 to 3 years, because this space is very fast moving and fast-changing,” Scott reminds us.

Dr. Zuloaga emphasizes the same point, “Companies should prepare themselves because this is going to spread. While this specific law applies to NYC residents, the concepts are very likely going to be incorporated in the laws globally and will apply to everyone at some point soon. Keep an eye on the law, but also know that HireVue is as well.”

Scott adds again, “This is yet another signal that lawmakers and regulators have AI on their mind. It’s not necessarily a framework that will be directly copied but rather a signal that more AI legislation is coming and this one is already here.”

HireVue is committed to watching and participating in legislation, engaging with regulators and lawmakers while ensuring we’re compliant and at the forefront of the emerging global landscape of AI governance. 

And when you’re looking for a tech vendor to help solve your hiring challenges, it’s imperative to look at the use cases for that technology.

Scott adds, “Understand what the vendor’s use case is and is not. Dig into the promises they’re making, and ask questions about their tool—how does it work and what kind of support does their tool provide in terms of current and emerging laws.”

And when looking for vendors, vendors should be able to do the following:

  • Easily explain how their technology works 
  • Explain it in a way that makes sense
  • Explain their ROI and validity 

As you look at the future of hiring technology, HireVue is committed to ethical and transparent use. We believe in:

  • Uniform audit criteria (that is use case specific)
  • Static algorithms
  • Audits for all AEDTs
  • Notice and transparency to empower candidates
  • Employer obligation to supply demographic data
  • Vendor-delivered audits

For more information on AI legislation, watch our webinar titled New AI Regulations here. And if you’re ready to make the next step in your hiring, request a demo.