FOLLOW US

New Jersey's attorney general clarified that the state’s discrimination law applies to algorithmic discrimination and bias-based harassment stemming from artificial intelligence and similar technologies. In a joint statement, Attorney General Matthew J. Platkin and the state Division of Civil Rights announced guidance to help companies ensure their use of AI and automated decision-making tools complies with the law.

The tools, used in employment, housing, credit, and public accommodations, risk causing disparate treatment discrimination, disparate impact discrimination, or failing to provide reasonable accommodations if improperly designed or tested. The guidance states regulated entities may be liable for algorithmic discrimination even when the tools are developed by third parties.

While AI is a new technology, the Law Against Discrimination (LAD) applies to algorithmic discrimination the same way it applies to traditional discriminatory conduct. The law prohibits discrimination in employment, housing, credit, and contracting based on race, religion, national origin, gender identity, disability, and other protected characteristics.

To address these risks, the state launched a Civil Rights Innovation Lab to develop technology that prevents discrimination and more efficiently processes complaints. The lab will collaborate with experts and stakeholders to ensure AI use aligns with civil rights protections.

Platkin emphasized the potential of technological innovation to revolutionize industries but underscored the importance of considering the needs of diverse communities. Gov. Phil Murphy echoed the sentiment, highlighting the state’s dual efforts to detect discrimination through advanced technologies and mitigate risks of misuse.

The Federal Trade Commission recently issued similar warnings about the potential harms of AI, including privacy violations and discrimination. Other states, including Colorado and Illinois, are also advancing laws to regulate AI’s role in decision-making processes. Colorado’s S.B. 205 mandates measures to avoid algorithmic discrimination, while Illinois’ new legislation amends the Human Rights Act to address AI-related workplace discrimination.

New Jersey’s proactive approach ensures its discrimination law remains robust and relevant in addressing challenges posed by emerging technologies.