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Last week, a law about AI and hiring went into effect in New York City, and everyone is up in arms about it. It’s one of the first AI laws in the country, and so the way it plays out will offer clues about how AI policy and debate might take shape in other cities. AI hiring regulation is part of the AI Act in Europe, and other states in the US are considering similar bills to New York’s. 

The use of AI in hiring has been criticized for the way it automates and entrenches existing racial and gender biases. AI systems that evaluate candidates’ facial expressions and language have been shown to prioritize white, male, and abled-bodied candidates. The problem is massive, and many companies use AI at least once during the hiring process. US Equal Employment Opportunity Commission chair Charlotte Burrows said in a meeting in January that as many as four out of five companies use automation to make employment decisions. 

NYC’s Automated Employment Decision Tool law, which came into force on Wednesday, says that...