As corporations continue to implement Artificial Intelligence (AI) into their operations, state and local jurisdictions have passed legislation to regulate the use of such technology. This legislation includes the regulation of Automated Employment Decision Tools, Facial Recognition Technology, and Algorithms.

States, such as New York, impose strict requirements on employers to assist with the hiring and promotion decisions regarding Automated Employment Decision Tools. Employers are prohibited from using the automated employment tool unless it has been the subject of an independent bias audit less than one year before using the tool, and a summary of the most recent bias audit results along with the tool’s distribution date must be publicly on the employer’s website before using the tool. Penalties for violating this provision include a fine of up to $1,500.

Other states have focused on facial recognition technology and how law enforcement agencies may use it. For example, Virginia recently passed a bill allowing local law enforcement, campus police, and the Department of State Police to use facial recognition technology to identify individuals for specific reasons and to ensure officer safety for officers going undercover. However, an affidavit may not include facial recognition made to establish probable cause through this technology. The match may only be used as exculpatory evidence. Anyone found violating this law can be fined up to $500 for the first office, fined up to $2,500, and/or confined in jail for up to one year for further offenses.

Algorithm-centered legislation focuses on social media platforms that use algorithms to target user-generated content, especially for minors. In Minnesota, social media platforms are prohibited from using algorithms to target minors if the operator knew or had reason to know the individual was under 18 years of age. This bill primarily focuses on account holders with over one million followers. Violators could face up to a $1,000 civil penalty.

As AI becomes a staple technology in most companies, employers must stay current on compliant policies to avoid penalties. Staying aware of each state’s legislation regarding AI will make incorporating and utilizing the newest software easier.