Artificial intelligence use continues to rise in employment

As 2023 wound down, the use of artificial intelligence (AI) by employers showed no sign of slowing down. Rather, you should prepare for an increased use and presence of AI in employment decision-making, as well as employee engagement.

Intersection of technology and employment law

Throughout 2023, an increasing number of states and cities began limiting the use of AI in employment decision-making, and the Equal Employment Opportunity Commission’s (EEOC) draft strategic enforcement plan (SEP) likewise outlined its intended approach to employers’ use of AI. As the year progressed, both states and the federal government continued to crack down on AI use in employment in cases that resulted in discrimination or discriminatory impact.

More specifically, multiple states proposed legislation in 2023 addressing individuals’ data privacy rights, with some including provisions addressing AI use in employment. In Washington, for example, the People’s Privacy Act sought to prohibit covered entities from, among other things, “the use of artificial intelligence-enabled profiling to make decisions that produce legal effects or similarly significant effects concerning individuals” (including employment opportunities). Although this specific legislation hasn’t passed through committee, it signals that states are increasingly primed to legislate the intersection of technology and employment law.

Eliminating barriers