Many companies use AI to read resumes, rank candidates, or score interviews. But HR teams can no longer treat these tools like simple software. In New York City, employers that use an automated employment decision tool must have a recent bias audit, make information about that audit public, and give notice to job candidates or employees. Colorado has also moved forward with a statewide rule: after a 2025 delay, its AI law is now scheduled to take effect on June 30, 2026. (nyc.gov)
Colorado’s law is especially important for HR because it covers high-risk AI used in “consequential decisions,” including employment decisions. The law says deployers should use reasonable care to reduce algorithmic discrimination, complete impact assessments, review systems every year, notify people when AI is a substantial factor in a decision, and offer a chance to appeal an adverse decision with human review when technically feasible. (leg.colorado.gov)
Europe is moving in the same direction. Under the EU AI Act, AI used for recruitment, CV filtering, candidate evaluation, promotion, termination, task allocation, and worker monitoring is classed as high-risk. The law’s AI literacy duties started on February 2, 2025, and the main high-risk rules are currently set to apply on August 2, 2026. Those rules focus on better data quality, documentation, human oversight, traceability, and accuracy. (digital-strategy.ec.europa.eu)
US federal law already matters too. The EEOC says Title VII applies when employers use automated systems to make, or help make, hiring decisions. ADA guidance also says employers should check hiring technology before using it and while using it, tell applicants what technology is being used, and provide reasonable accommodations when needed. Regulators are also challenging bold AI claims: in January 2025, the FTC finalized an order against IntelliVision over unsupported claims that its facial-recognition software was free of gender or racial bias. For HR, the lesson is clear: do not trust the vendor’s sales talk alone. Ask for evidence, test results, and clear explanations, and keep people—not machines—in charge of the final hiring decision. (eeoc.gov)
