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Attempts to Regulate AI’s Hidden Hand in Americans’ Lives Flounder in US Statehouse

AP

May 23, 2024

The first attempts to regulate artificial intelligence programs that play a hidden role in hiring, housing and medical decisions for millions of Americans are facing pressure from all sides and floundering in statehouses nationwide.

Only one of seven bills aimed at preventing AI’s penchant to discriminate when making consequential decisions — including who gets hired, money for a home or medical care — has passed. Colorado Gov. Jared Polis hesitantly signed the bill on Friday.

Colorado’s bill and those that faltered in Washington, Connecticut and elsewhere faced battles on many fronts, including between civil rights groups and the tech industry, and lawmakers wary of wading into a technology few yet understand and governors worried about being the odd-state-out and spooking AI startups.

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While anti-discrimination laws are already on the books, those who study AI discrimination say it’s a different beast, which the U.S. is already behind in regulating.

“The computers are making biased decisions at scale,” said Christine Webber, a civil rights attorney who has worked on class action lawsuits over discrimination including against Boeing and Tyson Foods. Now, Webber is nearing final approval on one of the first-in-the-nation settlements in a class action over AI discrimination.

“Not, I should say, that the old systems were perfectly free from bias either,” said Webber. But “any one person could only look at so many resumes in the day. So you could only make so many biased decisions in one day and the computer can do it rapidly across large numbers of people.”

When you apply for a job, an apartment or a home loan, there’s a good chance AI is assessing your application: sending it up the line, assigning it a score or filtering it out. It’s estimated as many as 83% of employers use algorithms to help in hiring, according to the Equal Employment Opportunity Commission.

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Webber’s class action lawsuit alleges that an AI system that scores rental applications disproportionately assigned lower scores to Black or Hispanic applicants. A study found that an AI system built to assess medical needs passed over Black patients for special care.

Studies and lawsuits have allowed a glimpse under the hood of AI systems, but most algorithms remain veiled. Americans are largely unaware that these tools are being used, polling from Pew Research shows. Companies generally aren’t required to explicitly disclose that an AI was used.

“Just pulling back the curtain so that we can see who’s really doing the assessing and what tool is being used is a huge, huge first step,” said Webber. “The existing laws don’t work if we can’t get at least some basic information.”

That’s what Colorado’s bill, along with another surviving bill in California, are trying to change. The bills, including a flagship proposal in Connecticut that was killed under opposition from the governor, are largely similar.

Colorado’s bill will require companies using AI to help make consequential decisions for Americans to annually assess their AI for potential bias; implement an oversight program within the company; tell the state attorney general if discrimination was found; and inform to customers when an AI was used to help make a decision for them, including an option to appeal.

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