If you use an applicant tracking system, resume screening software, or any digital tool in your hiring process, there is a reasonable chance AI is already involved — even if you didn't specifically choose it. And in an expanding list of jurisdictions, that now comes with legal obligations.
New York City's Local Law 144, which has been in effect since 2023 and is now being actively enforced, requires employers that use automated employment decision tools (AEDTs) to conduct annual bias audits of those tools and notify candidates that AI is being used in the hiring process.
Illinois passed a law requiring employers to disclose when AI is used in video interviews and to inform candidates of the traits being analyzed. Maryland requires disclosure when facial recognition or similar AI tools are used in hiring. Colorado's AI Act, taking effect in 2026, establishes broader obligations around high-risk AI systems including those used in employment.
The definition is broad. If a software tool uses machine learning to score, rank, or filter candidates, it likely qualifies. This includes resume screening features built into popular ATS platforms, video interview analysis tools, and AI-assisted job matching features. The tool doesn't need to make the final decision — it just needs to influence the screening or ranking process.
The safest assumption is that if your ATS has any "smart" filtering or ranking feature, it may be covered by emerging AI hiring laws in the jurisdictions where you operate. Check before you assume you're exempt.
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