Source: JD Supra

This article from JD Supra examines California’s Assembly Bill 1018 (AB 1018), which proposes new regulations on the use of AI and algorithmic tools in employment-related decisions. The bill requires employers to notify individuals when automated systems influence decisions such as hiring, promotions, and terminations. It mandates annual impact and bias audits, options for employees to opt out of AI-based decisions, and pathways for human review.

The article discusses the practical challenges employers face, including difficulties in auditing AI systems developed by third-party vendors and the administrative burden of compliance. It also highlights concerns about vague definitions within the bill that may increase legal uncertainty and liability risks. The piece concludes that while regulating AI in the workplace is inevitable, AB 1018 may impose burdensome requirements that could stifle innovation, especially for small and medium-sized businesses.