Employers are increasingly integrating artificial intelligence (AI) into the hiring process, deploying AI hiring tools across multiple stages of the employment funnel, including to manage application volume.

These tools promise efficiency, but they also raise potential legal risks related to disparate impact discrimination and compliance with other legal requirements when automated systems influence employment outcomes. Use of these technologies is also ripe for novel lawsuits, raising litigation risks for employers.

Below we lay out key state, local, and federal approaches to regulating AI in hiring and provide practical guidance for employers to navigate and manage growing risk in this area.