Dueling Federal and State Directives on AI Hiring Technology Bring Compliance Challenges for Employers
Summary The federal government recently unveiled America’s AI Action Plan (the Plan), a sweeping policy roadmap aimed at clearing away regulatory barriers, supercharging U.S. investment in infrastructure and talent surrounding AI, and asserting U.S. leadership in global AI markets. In part, the Plan directs federal agencies to eliminate regulations that could impede AI technology development and calls for the funding of various federal initiatives to helps workers retrain and thrive in an AI economy . The Plan also threatens to withhold federal funding and program awards from states that have strict AI regulatory environments. Meanwhile, several states are currently scheduled to implement laws that regulate how employers may use artificial intelligence during the hiring process and when they make other personnel decisions. It remains to be seen whether the Plan will deter these states from pursuing new AI regulation, including restrictions on how companies use AI technology in their h...