The White House’s newly released AI Action Plan, officially titled: “Winning the AI Race: America’s AI Action Plan,” outlines over 90 Federal policy goals aimed at securing U.S. dominance in Artificial intelligence.
While the plan promises innovation and economic growth, it also raises critical considerations for employers, especially in California, where AI regulation is already taking shape.
Understanding the Federal Framework of America’s AI Action Plan
The AI Action Plan warns that states with “burdensome” AI regulations may lose access to federal AI-related funding. While the term remains undefined, this could put California in the spotlight, as the state is actively pursuing sweeping AI regulations through the California Civil Rights Council (CRC).
California’s Proposed AI Regulations Affecting Employers
First, California’s proposed AI regulations introduce the concept of an “agent,” potentially extending liability under the Fair Employment and Housing Act (FEHA) to AI developers. Employers using third-party AI tools could be held accountable for discriminatory outcomes, even if unintentional.
Second, AI tools that assess reaction time or dexterity could inadvertently screen out candidates with physical or cognitive disabilities. Employers must make sure their tools comply with both State and Federal disability protections.
Third, developers and users of AI tools may face complex recordkeeping obligations, especially when the tools are sold or licensed to third parties as well.
HR Recommendations for California Employers
Given the intersection of America’s AI Action Plan and California’s AI regulatory environment, employers should take immediate action. The 5 crucial steps to take include:
- Audit AI tools used in hiring, screening, and performance management.
- Develop internal policies and procedures that align with the AI tools that are being used
internally - Train your internal managers and team on these AI policies, procedures, and expectations.
- Stay informed on CRC’s proposed regulations and engage with an HR Consulting firm,
like Bizhaven
To learn more about how Bizhaven can support your organization in building out AI safeguards, reach out today!
