Artificial intelligence (AI) has taken the world of work by storm. Whether companies are looking to improve diversity or speed up their hiring process, it’s clear that organizations are looking toward the future of work through the use of AI. Research shows that over 99% of Fortune 500 companies and nearly 1 in 4 of all US employers currently use AI tools. With this in mind, New York City (NYC) has stepped in to make sure that the AI tools being used are free from bias.
The more AI tools we see become available in the marketplace, the more we see AI being misused within the hiring process. While some companies are misusing AI, other companies are unknowingly using AI tools that encourage bias and discrimination within the HR processes they were designed to automate. Noticing this, cities like NYC have decided to take action. The city has already implemented a new AI Bias Law to ensure this does not happen – and it’s likely going to affect your company in a significant way.
For more information on the NYC law and how your company can ensure its compliance, continue reading the blog below.
What is the NYC AI Bias Law?
The New York City AI Bias Law refers to the “Local Law 144” that the NYC Council has voted to implement. The new law states that not only will companies need to regularly audit their AI tools through a third-party auditing company for bias, but they will have to let candidates and employees know in advance that they will be implementing these AI tools within their hiring and promotional processes. This law applies to any business using AI technology in employment matters within New York City, regardless of their location. If AI systems impact employment for NYC residents, compliance is required, even for companies based elsewhere.
Local Law 144 passed in November 2021. Enforcement moved twice, from 1 January 2023 to 15 April 2023 and then to 5 July 2023, while the Department of Consumer and Worker Protection worked through two rounds of proposed rules and two public hearings. It has been enforceable since July 2023, with a first-violation penalty and further penalties for each day a non-compliant tool stays in use and each candidate who does not receive notice.
Enforcement in practice has been thin. On 2 December 2025 the Office of the New York State Comptroller, Division of State Government Accountability, published Report 2024-N-6, Enforcement of Local Law 144 - Automated Employment Decision Tools, covering July 2023 through June 2025. It found that the enforcing agency had identified no violations across the audit period and relied on a complaint-driven model, and it recommended a proactive approach instead. Read that as a warning rather than an all-clear: the audit's own recommendation is more enforcement, and California, Illinois and Colorado have all moved since.
AI Bias Laws = The War on AI?
While this law might seem like an attack on artificial intelligence as a whole, the truth is that cities like NYC are implementing this law to make sure that only the best and most thorough AI tools are being used to help employers find the best possible talent.
We know that AI isn’t perfect. There have been plenty of accounts of artificial intelligence tools being used improperly or discriminating against minorities. Why does this happen? Because the output of AI tools is only as good as the input we provide when creating them. We need to think of ourselves as the teachers and our AI tools are the students. When we provide them with biased data and inaccuracies, that is the behavior that they will learn and their output will reflect this.
New York City doesn’t want to hinder AI from changing our lives for the better. On the contrary, NYC wants to monitor these AI tools so that artificial intelligence can continue to be put to good use. Without audits, things like bias or discrimination creep in and begin hindering people from reaching greater heights.
The Future of AI in the Workplace
Whatever your thoughts surrounding AI may be, one thing is certain: artificial intelligence is here to stay. These tools have transformed the way we hire and manage talent and there’s no going back. Society will simply have to adjust to the ‘new normal’ of AI and smart tools. With more of these tools being incorporated into our daily workflows, the more we will need to audit them for compliance.
New York City is just the first of what is likely to be many cities to introduce a law like this. We are already starting to see other locations around the world following the city’s lead. The state of California is considering introducing similar anti-bias laws and implementing AI audit mandates. Likewise, the EU has also proposed the Artificial Intelligence Act, which will leave AI tools subject to highly specific legal requirements.
While this might seem like society is trying to ban AI from existing, the existence of audits and regulations is to keep us safe. NYC and other places around the world are putting laws into place to protect our society, while holding companies accountable for making their AI tools more efficient and bias-free.
The obligation under Local Law 144 sits with the employer using the tool, not with the vendor supplying it. You need an independent bias audit of your own use of the tool, completed within the previous year, a published summary of its results, and notice to candidates at least ten business days before the tool is used. A vendor cannot discharge that duty for you. What a vendor can do is give you the inputs. Bryq's assessments are validated by I/O psychologists and adverse-impact tested. Bryq supplies adverse-impact analysis by sex, race and ethnicity, along with candidate notice language you can adapt. Bryq is SOC 2 Type II certified, GDPR compliant, and EU AI Act Article 4 ready. Confirm with your own counsel; this is not legal advice.
Would you like to learn more about how Bryq can assist you in making data-driven, unbiased talent decisions? Schedule a free demo with our team!
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Bryq is composed of a diverse team of HR experts, including I-O psychologists, data scientists, and seasoned HR professionals, all united by a shared passion for soft skills.
