Executive Order on artificial intelligence carries implications for employers

Recently, U.S. President Joe Biden signed a wide-ranging Executive Order (EO) on artificial intelligence (AI). Although the order mainly concerns federal agencies’ approach to AI, it also has important implications for private employers.

Background

On October 30, 2023, Biden signed the Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. This EO is the first of its kind because previous administrations haven’t dealt with the issues currently permeating the AI space.

The trend of regulating AI isn’t new, however, as local, state, and federal jurisdictions have sought to issue standards regarding AI use in recent years. For example, in April 2023, the U.S. Equal Employment Opportunity Commission (EEOC), along with several other federal agencies, issued a joint statement promising to enforce federal laws in the context of AI.

In May 2023, it followed up on that statement by issuing a resource document entitled, “Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964.” The document discusses employers’ use of AI systems in hiring and offers guidance for how Title VII of the Civil Rights Act of 1964’s prohibitions on discrimination might apply to the use of AI technology.