In a landmark ruling by California’s highest court, AI vendors who utilize algorithms for dealings in the employment sector, such as job advertising and application screening, would be held directly liable for any instances of discrimination under the state law. The decision was reached at a time when AI regulation is in its formative stages, and is expected to have widespread implications beyond just the state of California.
According to attorney Randy Erlewine of the San Francisco based legal firm of Phillips, Erlewine, Given & Carlin, this ruling has paramount implications on outsourcing in particular, as many companies rely upon outside firms to manage their employment-related functions.
More in-depth knowledge about the California high court’s adjudication and its potential impacts on AI companies and professionals can be obtained from the law.com report.