EEOC AI Audits

EEOC has identified the issue of bias in AI algorithms as one of its top 3 enforcement priorities in its 2023-2027 enforcement plan.

EEOC has made it clear that employers are liable for disparate impact of their automated and AI-powered hiring tools — and that this legal burden falls on employers, not the vendors of the tools.

EEOC has recommended regular audit of autoamted hiring tools to make sure they do not violate the “80% rule” and other bias metrics.

Proceptual provides the audit reports needed to create assurance that employers are not out of compliance.

Contact Us For a Free Consultation

Our Proven Process

Proceptual’s technology-driven, proven process produces data governance and compliance quickly and accurately.

Step 1

SCOPING

Is an audit necessary?
Which tools must be audited?

DATA COLLECTION & CLEANING

Collect data and clean
Comply with internal and external prviacy requirements

Step 2

Step 3

COMPLETE AUDIT

Complete the audit of the tool in question and generate reports

INTERNAL REVIEW

Review audit results with internal stakeholders and identify next steps

Step 4

Step 5

REMEDIATION

If disparate impact is identified, Proceptual recommends specific remediation options.

Chat with a compliance expert

What has EEOC published regarding their intentions on regulating AI?

EEOC has released a substantial document addressing the issue of AI bias and discrimination. While it should be read in its entirety, it strongly makes the point that AI hiring systems will be treated the same way as more traditional systems; it also makes clear that an employer using an AI system is responsible for compliance – not the vendor.

EEOC also began training its enforcement staff to be able to identify AI bias.

How does the EEOC action interact with other municipal and state regulations?

EEOC’s statements dovetail with the regulations that are currently enacted by NYC Local Law 144. Additionally, several other states including New Jersey, California, Connecticut, as well as Washington DC have proposed bills requiring independent audit of AI hiring systems.

Has EEOC said anything specific about the content or methodology of bias audits?

Commissioner Sonderling has said that employers cannot be sure that their audit regime makes them compliant with EEOC just because that audit complies with local regulations. Employers should be sure that whatever audit methodology signs up for captures the requirements of municipal, state, and federal regulators.

Has EEOC begun enforcement of AI regulations?

Yes. In August 2023, EEOC settled its first claim of AI bias with a tutoring company for $365,000. As an editorial note, this amount is an order of magnitude larger than the cost of an audit.