Regulation Gap: Only a Few Places Require Consent for AI Use in Hiring, Raising Concerns

As artificial intelligence (AI) continues to advance and permeate various aspects of our lives, several state legislators recognize the pressing need to establish regulations for its use in the hiring process. According to the 2022 IBM Global AI Adoption Index, approximately one-fourth of businesses in the United States have adopted AI, reflecting a significant increase of over 13% from the previous year. Consequently, many organizations are now integrating AI into their hiring procedures.
 

However, state laws have yet to keep pace with this rapid technological evolution. Presently, only Illinois, Maryland, and New York City have enacted legislation that mandates employers to seek consent before utilizing AI in specific stages of the hiring process. Nonetheless, a few other states are contemplating similar measures.
 
Acknowledging this regulatory lag, Maryland state Delegate Mark Fisher, a Republican, commented, "Legislators are critical, and as always, legislators are always late to the party." Fisher sponsored Maryland's 2020 law, which regulates the use of facial recognition programs in hiring, prohibiting employers from employing certain facial recognition services during an applicant's interview process without their consent. He further emphasized that while technology often innovates first and appears promising, legislators must step in and regulate when necessary.
 
Regarding AI development, the urgency to innovate frequently outweighs the consideration for legislation. However, both developers and policymakers must contemplate the implications of their decisions. Hayley Tsukayama, senior legislative activist at the Electronic Frontier Foundation, an organization advocating for civil liberties on the Internet, emphasized the importance of transparency from developers regarding the systems they employ. She also stressed the significance of engaging with various stakeholders, mainly those directly impacted by the use of AI in hiring, to ensure effective policymaking.
 
AI has demonstrated its potential to enhance the hiring process by facilitating resume evaluations, scheduling candidate interviews, and gathering relevant data, as noted by Skillroads, a professional resume-writing service incorporating AI analysis.
 
Recognizing the need for action, some members of Congress are also taking steps to address the issue. The proposed American Data Privacy and Protection Act, introduced by U.S. Representative Frank Pallone Jr., a New Jersey Democrat, aims to establish regulations for AI, including AI risk assessments and its overall use, with a specific focus on data collected during the hiring process. Currently, the bill is under review by the U.S. House Energy and Commerce Committee.
 
Last year, the Biden administration issued the Blueprint for an AI Bill of Rights, which provides a set of principles to guide organizations and individuals in the design, use, and deployment of automated systems, including AI.
 
While policymakers at the federal level continue to deliberate on comprehensive legislation, state and local lawmakers have taken the initiative to create their policies.
 
AI has the potential to revolutionize the hiring process, offering various benefits. However, the lack of consistent regulations and transparency surrounding its use raises concerns about potential biases and ethical implications. Achieving a balance between innovation and accountability is paramount as we navigate the integration of AI into hiring practices.