New Jersey antidiscrimination law applies to AI bias

Guidance on Algorithmic Discrimination and the New Jersey Law Against Discrimination makes clear that the LAD protects individuals from algorithmic discrimination stemming from the use of AI and other automated decision-making tools. The guidance is intended to help ensure that companies’ use of AI complies with existing law but does not create any new legal obligations. A note clarifies that automated decision-making tools implicate the LAD only when that use results in unlawful discrimination.

“Responsible use of artificial intelligence technologies offers the potential to enhance government’s ability to deliver services and administer policy,” said Dr. Beth Simone Noveck, New Jersey State Chief AI Strategist. “Government also has a duty to ensure that both the public and private sector use these tools effectively and securely.” 

The guidance explains that the use of automated decision-making tools may result in disparate treatment, disparate impact or failure to provide a reasonable accommodation if the tools are not carefully designed, trained, evaluated and tested to prevent bias. It also points out that some automated decision-making tools offer the promise of reducing bias and discrimination.

Finally, the guidance reiterates that employers may be liable for algorithmic discrimination resulting from their use of AI or an automated decision-making tool, even if the tool is developed by a third-party.