Dem lawmakers want to regulate how companies use AI in hiring

A pair of Democratic lawmakers has introduced a bill to regulate how companies use artificial intelligence to hire people.

State Reps. Ismail Mohamed, D-Columbus, and Veronica Sims, D-Akron, introduced House Bill 828 to establish requirements for companies that use AI when hiring, as well as for automated tools used in promotion and disciplinary decisions.

According to the bill, an “automated employment decision tool” is a “computational process derived from machine learning, statistical modeling, data analytics, or AI” that provides scores, classifications, and recommendations to assist or replace human decisions in the hiring process.

If the bill becomes law, companies would be prohibited from relying entirely on AI when hiring, and even when using AI, its output would need to be verified by a real human.

The bill would also require companies to notify workers or job applicants in writing at least 10 days before using AI and to accept workers’ and job applicants’ requests for an alternative evaluation process that does not involve AI. Mohamed said the bill was introduced to address the fact that AI has become a widely used tool in the average American workplace, according to NBC 4.

“As workplaces continue to rely more heavily on artificial intelligence for hiring, promotions, discipline, and other employment decisions, it is important that safeguards are in place to protect workers,” he said. “The concern is not technology itself, but the lack of transparency and accountability when algorithms are allowed to make decisions that directly affect someone’s livelihood.”

Mohamed also told the news source that AI can discriminate against employees and job applicants, NBC 4 reported.

As of Thursday, the bill has not yet been assigned to a House committee.

“Most companies are writing job descriptions with AI — and now they’re even using AI to determine if the resumes coming in were done by AI,” Tom Johnston, founder of Synova Talent Solutions, told Spectrum News 1. “It’s a great tool, but it’s actually making it far more difficult for both the candidate and the companies to come together.”

Ohio lawmakers previously supported addressing the issue, with the House Technology and Innovation Committee announcing it will study how AI is used in the Buckeye State, according to the news source. Though not directly related to the job market, Ohio lawmakers have also introduced bills to penalize AI systems that encourage self-harm and to target pricing algorithms that use non-public competitor data.

Mohamed told the news source that similar AI-related laws have been introduced in other states, such as Colorado and Illinois. He said that Ohio should follow their lead by pushing back against the use of AI tools, which could eventually hurt Ohioans in job market.

“H.B. 828 is focused on ensuring human oversight remains part of the process and that workers have transparency and options when automated systems are involved,” he said, NBC 4 reported.

Multiple news outlets and publications, including the BBC, Harvard Business Review, and the ACLU, previously reported that companies using AI tools negatively affected people trying to find a new job.

“The problem that we’re finding with these applicant tracking systems is they pick up bias, and that’s what makes them potentially illegal,” Sharon DeLay, owner and managing consultant of GO-HR, told Spectrum News 1. “If the system is set up to always kick out people that don’t have a bachelor’s degree — that’s potential bias. There are truly very few jobs that actually require a college degree.”

Ohioans are no different, according to Spectrum News 1. An Ohio veteran with many years of experience told the news source that he can’t find a job because he doesn’t have a college degree, and that all AI tools currently used by companies automatically exclude job applicants who don’t mention a college degree on their resumes.

“There’s a lot of weeding out. And AI is just really making it easier,” Chris White, a Navy veteran and IT professional with 14 years of experience, told Spectrum News 1. “A lot of entry-level jobs require a two-year degree. Four-year degrees are kind of the norm. I’ve got almost 15 years of experience — but without a degree it all, you know, amounts to zero.”