Who Needs to Comply with the NYC Bias Audit Mandate?
This article was originally posted on the Holistic AI blog, where you can find all our latest articles on AI risk management and AI regulations.
Do I need an audit or am I exempt?
New York City’s legislation requiring bias audits of automated employment decision tools is coming into effect on the 1st of January 2023 and has left a lot of people wondering — do I need an audit or am I exempt?
Audits for employers and employment agencies
The key to who needs to have the audit boils down to three factors:
- Use of an automated employment decision tool — an automated decision tool is a computational process that produces a simplified output used to aid or automate decision-making for employment decisions. For more information, read our top tips here.
- Use of these tools within New York City — the mandate applies to the evaluation of candidates or employees for promotion within New York City.
Those who meet these criteria need to have a bias audit performed by an independent auditor.
Take our short quiz here to find out if you should get an audit or book in a free consultation with our team directly.
Vendors opting to get an audit
Vendors of automated employment decision tools may not be on the hook themselves under the legislation, but if their customers meet the above requirements, they’ll be the subject of the audit.
Not getting an audit puts vendors at risk of a client’s audit uncovering problematic information, which could be costly in terms of fines and reputation.
Benjamin Franklin aptly said, “By failing to prepare, you are preparing to fail,” which is why many vendors are taking control and getting an audit.
By getting an audit proactively, software vendors can air and mitigate issues ahead of time. They’re also able to provide assurance to current clients and future prospects that their software is in compliance.
More information on the NYC bias audit mandate
Love a good read and want out more information about getting ready for the NYC bias audit mandate? Check out our full paper here. Or want a summary of the key points? Find our FAQs here.
About Holistic AI
Holistic AI is an AI risk management company that aims to empower enterprises to adopt and scale AI confidently. The AI risk management software platform audits and assures AI systems’ code, data, policies, and processes. As a result, enterprises can maximise their AI’s value, minimise reputational, legal and commercial risks, and accelerate innovation.
We have pioneered the field of AI risk management and have deep practical experience auditing AI systems, having reviewed over 100+ enterprise AI projects covering 20k+ different algorithms. Our clients and partners include Fortune 500 corporations, SMEs, governments and regulators.
