

- EQUAL EMPLOYMENT OPPORTUNITY ACT EXEMPTS TITLE VII FULL
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“AI tools can be inaccurate, biased, and discriminatory by design and incentivize relying on increasingly invasive forms of commercial surveillance. Notably, the joint statement includes explicit warnings about deploying AI in a variety of contexts, noting: There is no AI exemption to the laws on the books, and the FTC will vigorously enforce the law to combat unfair or deceptive practices or unfair methods of competition.”

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“We already see how AI tools can turbocharge fraud and automate discrimination, and we won’t hesitate to use the full scope of our legal authorities to protect Americans from these threats Technological advances can deliver critical innovation-but claims of innovation must not be cover for lawbreaking. In a press release accompanying the statement, FTC Chair Khan said: The document released on May 18, 2023, is titled “ Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964” and is intended to aid employers and developers as they design and adopt new AI-enabled technologies.Ĭompanies considering the use of automated decision-making tools in their hiring or employment practices are advised to pay careful attention to these regulations and legislation, which may affect existing hiring practices previously considered industry-standard. More recently, the EEOC has published a new guidance document in support of its Artificial Intelligence and Algorithmic Fairness Initiative (launched in 2021). The DOJ and EEOC have repeatedly warned about disability and employment discrimination using AI tools.

The use of automated decision-making has been a topic of legislative action from a variety of state and municipal actors, including California and New York City. The other federal agencies involved have each issued separate guidance in their respective fields. These warnings follow the FTC’s guidance from April 2021 on fairness and equity and its June 2022 report to study “how artificial intelligence (AI) may be used to identify, remove, or take any other appropriate action necessary to address a wide variety of specified online harms.” The FTC’s new Office of Technology, designed to “strengthen the FTC’s ability to keep pace with the technological challenges in the digital marketplace by supporting the agency’s law enforcement and policy work,” is expected to take the lead in this area.
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Recent attention and increasingly widespread use of AI have led the FTC to issue a series of warnings this year about AI advertising.
