AEDT Audit
Proactive Compliance
Key Aspects of Our AEDT Audit
Importance of AEDT Audits
Proactive Regulatory Compliance
An Automated Employment Decision Tool (AEDT) Compliance Audit refers to the process of evaluating the use of AI-powered tools in employment decisions. The process checks the compliance of the tool with applicable regulations, particularly New York City’s Local Law 144, and similar laws enacted by eleven other states in the U.S. The number of states adopting AI-related bills is growing and the federal regulatory agencies have begun revealing guidelines for the responsible use of AI in the employment context. It is likely a matter of time before every business is subject to one or more overlapping rules or regulations in this space.
State Approaches to AI Systems
State governments are increasingly implementing measures to enhance transparency in how organizations use AI in public engagement. In terms of recruiting and hiring practices, many measures mandate that employers or businesses explicitly communicate their use of AI systems, specifically stipulating when and how those systems are employed. In certain cases, employers might even need to obtain employee consent before using AI systems that gather data about them.
Key Aspects of Our AEDT Compliance Audit
Identifying AEDTs
Determining which AI tools used within your organization fall within the definition of AEDTs.
Data Collection
Gathering relevant data on the use and outcomes of the tool, including demographic information.
Bias Assessment
Analyzing the data according to the required regulatory process to assess potential bias against protected groups. This may involve comparing selection rates, analyzing impact on different groups, and examining any disparities.
Remediation
If we find biases, we can recommend steps for mitigation through our knowledge of best practices and expert channel partner resources. Possible corrections may include but are not limited to, adjusting the algorithm of the tool, refining the criteria, or providing additional training.
Reporting
We’ll prepare a detailed audit report summarizing our findings, methodology, and recommendations. In certain instances, the report may be required for compliance or public disclosure.
Importance of AEDT Compliance Audits
- Intentional Decisions: Audits help identify and address biases in automated employee decision-making tools, promoting effective and equitable decisions for your workforce talent.
- Mitigating Legal Risks: Comply with state legislation that regulates the use of AI systems. We’ll help you proactively condiser possible legal challenges and penalties.
- Building Trust: Transparent audits and public disclosure of results can enhance public trust in the workforce talent processes used by your organization.
Our AIEquality Compliance Audit is a high-touch, professional service offering, leveraging resources from our team of scientists and equality experts. AIEquality analyzes the results of your AEDT and each participant’s demographic profile, in order to ensure the relevant decisioning tool or application adheres to legal requirements and industry best ethical practices. We review compliance of your tool for each protected classification in accordance with relevant laws, (e.g., New York City’s Local Law 144, Illinois’ HB3773, and Colorado’s SB 24-205) to check fairness, bias mitigation, and transparency. Our detailed Compliance Audit provides you with a comprehensive report, which includes actionable recommendations to maintain legal compliance and to promote ethical hiring practices on a go-forward basis. Our Audit report can be delivered in digital and hard format and can easily be uploaded to the client’s website or otherwise published in those jurisdictions where such publication or public posting is required. In an attempt to mitigate the annual costs associated with legal compliance in certain jurisdictions, our Audit process is designed to be seamlessly updated each year.
If your company uses AEDTs as a standard practice, it’s crucial to understand and comply with local, state, and federal laws that regulate the use of AI in recruiting, hiring, developing and promoting talent. Conducting regular AEDT compliance audits is a key step in maintaining accurate, effective and unbiased tools used in talent related decisions, and helps to protect your business from potential fines and litigation. Reach out to us today to schedule a compliance audit to discuss the effective and proper use of AEDTs in your organization.
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