New Jersey AG, Division of Civil Rights Issue Guidance on Application of Law Against Discrimination to AI

By Samuel Howie

In response to the proliferation of artificial intelligence (AI), the New Jersey Attorney General and the Division on Civil Rights (DCR) recently issued guidance concerning the application of the New Jersey Law Against Discrimination (LAD) to AI. The guidance suggests that employers can be held liable under the LAD even if the alleged discrimination resulted from AI decision-making tools.  In other words, claims of algorithmic discrimination are assessed the same way as other LAD claims. 

The guidance also provides an overview of the way AI decision-making tools are used in employment, housing, places of public accommodation, credit, and contracting. Additionally, the DCR announced the creation of a new Civil Rights Innovation Lab, which will aim to develop blueprints for employers to deploy AI-powered tools and educate the public about their rights under the law considering those tools. As a result, employers should exercise caution when implementing AI decision-making tools and, as always, stay aware of how the law impacts the adoption of new technologies.