As the battle to regulate A.I. begins, some cities are moving forward with policies that’ll place parameters on use cases within the workplace. New York City is one of them. 

Some might be surprised to find that the city’s government passed a law as early as 2021 stipulating that employers using A.I.-enhanced tools in hiring and promotion decisions must make candidates aware. Employers must also give candidates the option to request and learn what personal data is collected and are required to hire independent auditors to review their A.I. tools once a year for potential bias. Bias will be determined via an “impact ratio,” calculating the technology’s impact on hiring according to race and ethnicity, sex, and other intersectional categories. 

The law will go into effect in July, and violations will result in a fine. 

Much like the pay transparency bills that New York put into effect late last year, the A.I. law is expected to influence other states to take action. Illinois and Maryland have already enacted laws regulating A.I. in the workplace, and California, New Jersey, Vermont, and Washington, D.C., are in the process of doing the same.

New York City’s law has received mixed feedback, with some arguing that enforcing such laws for a rapidly advancing technology is impractical. But public interest advocates fear the rules don’t go far enough to protect workers. “My biggest concern is that this becomes the template nationally when we should be asking much more of our policymakers,” Alexandra Givens, president of the Center for Democracy & Technology, told the New York Times.

Even tech leaders are asking for more oversight. “A.I. needs to be regulated in a way that balances innovation and potential harms,” Google CEO Sundar Pichai wrote in the Financial Times this month. “I still believe A.I. is too important not to regulate and too important not to regulate well.”

In a speech last week, Microsoft’s president Brad Smith called for the U.S. to create a regulatory agency to oversee A.I. development.

And as CHRO Daily previously reported, the Equal Employment Opportunity Commission recently warned employers that they would be held responsible for any discrimination in hiring, firing, or promotions borne out of A.I. use.

Amber Burton
amber.burton@fortune.com
@amberbburton

Reporter's Notebook

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Women still face a “motherhood penalty” at work. A Harvard study found that women with children are less likely to be hired than women without children and are more likely to receive lower salaries. 

“Moms were six times less likely than non-mothers and 3.35 times less likely than childfree men to be recommended for hire. And if they did land the role, moms were more likely to be passed up for a promotion,” writes Fortune’s Ivana Pino.

Around the Table

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- The jobs most threatened by A.I. are typically held by women, according to a study from HR analytics company Revelio Labs. Bloomberg 

- The debt ceiling deal reached this weekend includes stricter work requirements for food stamps. New York Times

- Nvidia's CEO says generative A.I. will turn everyone into a programmer, including creative professionals. "We have closed the digital divide." CNBC

- Generative A.I. can already do much of the entry-level work in media and advertising, but adoption will be slow because consumers still consider it to be riddled with mistakes. Insider

Watercooler

Everything you need to know from Fortune.

Uber bill vetoed. Minnesota Gov. Tim Walz vetoed a bill that would have given the state's Uber and Lyft drivers a minimum wage. —AP

Replaced. The National Eating Disorder Association will replace the employees who operate its hotline with an A.I. chatbot. —Chris Morris

Office wipeout. A group of researchers studying remote work’s effects on commercial real estate estimate it could wipe out $506 billion in property values nationwide. —Alena Botros

Dollar and a dream. Inflation and the cost of living crisis mean that even salaries of $100,000 a year might not be enough to live the American Dream, according to the CEO of SoFi. —Chloe Berger

Mom-and-pop A.I. Artificial intelligence could help small businesses fill their staffing shortages. But just 11% of small business owners have tried it, according to a GoDaddy survey. —Tristan Bove