New AI Rules: States Require Notice and Records, Feds Urge Monitoring and Vetting

A patchwork of AI legal standards emerged this year to address employers’ mass adoption of AI software, which is now used by 75 percent of companies to aid hiring and promotion choices. This article, the second in a series, analyzes laws in Maryland and Illinois, federal guidance from the EEOC and DOJ, and draft regulations in California, with insights about the connections between these standards from AI law practitioners at Baker McKenzie, Davis Wright Tremaine, Jackson Lewis and Ogletree Deakins. Part one discussed New York’s first-in-the-U.S. requirement that companies audit their use of these AI tools. Part three will provide survey findings about companies’ existing AI compliance efforts and offer recommendations for companies to address the new requirements and avoid enforcement like DOJ’s June 21 discriminatory-algorithm settlement with Meta. See “AI Compliance Playbook: Seven Questions to Ask Before Regulators or Reporters Do” (Apr. 21, 2021).

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