August 25, 2023
A new law known as NYC 144, now in effect in New York City, mandates an annual “bias audit” for employers utilizing automated employment decision tools (AEDTs).
Noncompliance with the law will lead to civil penalties ranging from $500 for the initial violation and each subsequent violation on the same day, to between $500 and $1,500 for each subsequent violation. Each day that the AEDT is unlawfully utilized stands as an individual violation, and neglecting to provide notice is also considered a separate offense.
The complexities of this law, combined with penalties for non-compliance, present significant challenges for businesses that have embraced AI tools for not just their hiring process, but across their entire enterprise ecosystem.
This is where Konfer can make a difference.
One of the significant challenges under NYC 144 is the law's demand for transparency. Employers must have a clear understanding of how their AI tools are working. Moreover, they must publicly disclose specific details, such as the date of the most recent bias audit and the selection rate across various demographic categories.
Konfer, with its focus on transparency, can help businesses meet this challenge head-on. Its Governance-by-design product enables businesses to develop and deploy their AI algorithms, complying with the law's requirements while retaining confidence in their AI systems across the application, model, and data level.
The new law mandates an annual bias audit by an independent auditor. This can be a daunting task, especially for smaller companies without an in-house technical team.
By giving organizations a structured, accountable AI posture, Konfer ensures rigorous compliance with both internal standards and external legal requirements. With a systematic approach to identifying, understanding, and mitigating potential risks associated with AI assets, Konfer offers an invaluable capability to ensure that a company's AI hiring tools comply with all necessary regulations, including bias audits.
The passage of NYC 144 is indicative of a broader shift towards regulating AI, with similar bills proposed in other regions. Thus, businesses need a solution that can adapt to a rapidly changing regulatory landscape.
Konfer's ability to adapt to evolving regulations makes it an ideal companion for businesses navigating this new legal terrain. By keeping users compliant with current standards and updating policies to meet new requirements, Konfer ensures that businesses are always on the right side of the law.
Konfer, with its focus on a Governance-by-Design approach, offers a comprehensive solution for navigating these new regulations proactively.
If you're looking to take a proactive approach to AI governance that aligns with the latest regulations, explore what Konfer can offer your business. Start your journey towards responsible AI governance and compliance by visiting our 6 Weeks to AI Governance resource page.