On a recent Price of Business show, Host Kevin Price interviewed Alexander Paykin, a New York Commercial Litigation and Complex Transactions Attorney and Founder of The Law Office of Alexander Paykin, P.C. (www.paykinlaw.net).  Mr. Paykin is also a serial entrepreneur, sits on multiple 501c3 boards and professional committees, and teaches courses on technology and the law to other attorneys across the US and beyond.  Mr. Paykin advises countless regional, national and international companies on transactional, administrative and litigation issues and sits on various corporate boards of directors and advisors.

They discussed New York’s AI Discrimination Law, a pioneering law to prevent discrimination from AI tools used in employment decisions. The law, enacted in 2023, requires companies using AI for hiring, firing, or promotion decisions to conduct independent bias audits to ensure their systems don’t discriminate based on protected characteristics like race, gender, age, or disability.  Key elements discussed include requirements making audit results public, notifying employees and applicants when AI is being used, maintaining detailed records, and protecting employee rights to file complaints with the Commission on Human Rights. Companies must be transparent about how their AI tools work and what data they use.  This law is part of a broader regulatory movement. At the federal level, the White House has released an AI Bill of Rights, while the EEOC and FTC are increasing scrutiny of AI-driven employment decisions. Other states like California and Illinois have enacted or proposed similar legislation, with Illinois specifically regulating AI use in video interviews.  To comply, businesses must conduct regular bias audits, ensure transparency in their AI processes, stay updated on evolving regulations across jurisdictions, and be prepared for public scrutiny of their AI practices. This trend toward AI regulation is expected to continue growing nationwide.