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The following is a summary of an article by Tom Spiggle, The Spiggle Law Firm Summary of AI in Employment and Regulatory Frameworks Recent years have witnessed a significant transformation in how...
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The following is a summary of an article by Tom Spiggle, The Spiggle Law Firm
Recent years have witnessed a significant transformation in how artificial intelligence (AI) is perceived and utilized—transitioning from a futuristic concept found primarily in science fiction to an everyday tool that significantly impacts modern workplaces. With the advent of AI systems like chatbots and algorithm-based decision-making tools, companies are increasingly integrating these technologies to improve business practices. For example, Gallup reports that 93% of Fortune 500 chief human resource officers have adopted AI, while about one-third of employees are aware of their employers’ AI implementations. Despite its promise for boosting productivity and efficiency, AI’s use in recruitment and other employment contexts raises concerns about potential misuse and discrimination, prompting governments to enact laws and regulations aimed at protecting workers and job applicants.
IBM defines AI as technology that enables computers to simulate human capabilities such as comprehension, problem-solving, and decision-making. In the recruitment process, AI can streamline the identification and selection of candidates by processing resumes and identifying patterns that might indicate a desirable applicant. However, the reliability of such systems is not foolproof. A notorious example is the 2018 incident where Amazon’s AI hiring tool, trained on a dataset predominantly consisting of male applicants, began to favor candidates with traditionally male-associated characteristics. Although Amazon attempted to rectify the issue by modifying the algorithm to overlook gender-identifying terms, the project was eventually shelved due to persistent concerns over its effectiveness.
In response to concerns associated with the use of AI in employment, a number of states have introduced laws governing AI practices:
On the federal front, during the Biden administration, efforts largely revolved around raising awareness and establishing agency guidelines rather than imposing strict regulatory measures on AI in the workplace. A newer executive order implemented at the start of the Trump Administration, titled “Removing Barriers to American Leadership in Artificial Intelligence” seeks to promote the development and adoption of AI free from ideological biases, ensuring that federal policy continues to favor technological advancement over restrictive measures. As federal laws specific to AI in employment remain sparse, existing employment discrimination statutes, such as Title VII, are expected to remain the primary legal recourse for addressing any AI-induced discrimination.
A closely watched class-action case from California, in which an applicant alleges discriminatory practices by an AI-based employment vendor, underscores the increasing legal scrutiny of AI. This case illustrates that even if AI is not directly regulated by specific statutes, traditional anti-discrimination laws may still apply. The outcomes of such cases could significantly influence the future legal landscape, potentially reducing the need for further legislation by reinforcing the adequacy of current anti-discrimination frameworks.
In conclusion, while AI continues to revolutionize workplace practices, it simultaneously poses risks of unintended bias and discrimination. With most regulatory measures currently emerging at the state level and federal regulations remaining limited, employers face a complex and non-uniform legal environment. This legal uncertainty emphasizes the need for careful implementation and ongoing oversight of AI technologies to ensure fair and equitable treatment of all workers and job applicants.
This is a summary of an article by Tom Spiggle, founder of The Spiggle Law Firm, which specializes in labor and employment services for individuals.
This article appears in the April 2025 edition of Bender’s Labor & Employment Bulletin, 2025-4 Bender’s Labor & Employment 04 (2025).