40 • It will be enforced by the California Attorney General, a city attorney, or a county counsel, and provides for civil penalties of $5,000 per day. Also, in September 2024, California enacted several other AI-related laws in various areas, including health care, data privacy, watermarking content (provenance data), robocalls, deepfake pornography, election deepfakes, and entertainment industry use of voice or likeness replicas.8 Other States Many other states have proposed similar legislation, and it is expected that 2025 will see more states enact comprehensive AI laws. AI Laws in Employment Context Those that use AI technology in employment-related decisions are subject to some of the above-referenced laws but also certain employment-specific laws enacted by U.S. states and cities. Regulators are seeking to prevent the use of AI algorithmic systems that make decisions about candidates based on factors like race, ethnicity, and gender. Many companies use AI systems in screening resumes and sorting and analyzing employment applications, in some cases with the systems predicting the success of candidates based on individual characteristics. New York City enacted the first employment-specific AI law in the U.S., which became effective in July 2023.9 As discussed in our July 2023 advisory, it requires employers or employment agencies that use automated employment decision tools (AEDTs), located in New York City or involving NYC employees, to submit those AEDTs to periodic bias audits, to make information about the bias audit publicly available, and to provide certain notices to job candidates or employees. An AEDT is defined as technology that “is used to substantially assist or replace discretionary decision making” in hiring or other employmentrelated decisions by relying on factors generated by a machine (likely using artificial intelligence algorithms). Employers and employment agencies who 8 Governor Newsom announces new initiatives to advance safe and responsible AI, protect Californians, Governor Gavin Newsom (Sept. 29, 2024), https://www.gov.ca.gov/2024/09/29/ governor-newsom-announces-new-initiatives-to-advance-safe-and-responsible-aiprotect-californians/ 9 Automated Employment Decision Tools (AEDT), NYC Consumer & Worker Protection (last visited Nov. 8, 2024), https://www.nyc.gov/site/dca/about/automated-employment-decisiontools.page
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