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Federal Government Signals Enforcement Priority Regarding Artificial Intelligence Tools in The Workplace

The EEOC and FTC issued advisories regarding the potential risks and pitfalls associated with the use of artificial intelligence (AI) and biometric information in employment practices. The EEOC's "AI Technical Guidance" aims to prevent disparate impact discrimination triggered by AI or automated systems, while the FTC's "Policy Statement" warns against false claims and improper collection of biometric information. Click here for article.

  • EEOC AI Technical Guidance:

  • Employers should be cautious of AI systems and algorithms that may result in disparate impact discrimination, even if developed or administered by outside vendors.

  • The guidance encourages employers to assess the adverse impact of AI tools using the standard 1978 Uniform Guidelines on Employee Selection Procedures (UGESP).

  • Ongoing self-analyses are recommended to proactively identify and address any disparate impact on protected groups.

  • FTC Policy Statement:

  • False or unsubstantiated claims about biometric information technologies may violate the FTC Act.

  • Factors considered by the FTC include assessing foreseeable harms, addressing known risks, and providing appropriate training for employees handling biometric information.

  • The FTC will test its policies through litigation, as seen in past cases like Facebook's settlement over privacy violations.

  • Enforcement Actions:

  • The EEOC has prosecuted employers for allegedly discriminatory AI-based hiring practices, highlighting the importance of compliance with antidiscrimination laws.

  • The FTC has settled cases related to deceptive claims and practices involving biometric information, indicating its focus on enforcing privacy and consumer protection laws.

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