In response to President Biden’s Executive Order on AI, the Office of Federal Contract Compliance Programs (OFCCP) has unveiled a comprehensive guide addressing AI in the context of Equal Employment Opportunity (EEO). With AI increasingly integrated into employment decision-making processes, the guide aims to clarify federal contractors’ legal obligations, promote EEO principles, and mitigate potential biases inherent in AI systems.
The guide starts by defining AI as a machine-based system capable of making predictions, recommendations, or decisions based on human-defined objectives. It elaborates on the role of algorithms, which serve as sets of instructions followed by computers to achieve various ends, including the evaluation and decision-making processes in human resources software and applications used by federal contractors.
While AI offers opportunities to enhance productivity and efficiency, its use in employment decisions also poses risks of perpetuating bias and discrimination. OFCCP underscores that federal contractors must uphold EEO obligations, ensuring that individuals are treated without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or veteran status, even when employing AI systems. Federal contractors are reminded of their obligations to maintain records, ensure confidentiality, and cooperate with OFCCP inquiries regarding their AI systems. Moreover, they must provide reasonable accommodations for applicants or employees with disabilities, ensuring that AI systems do not inadvertently disadvantage them in employment processes.
The guide highlights potential risks associated with AI, such as the reinforcement of existing inequalities or the unintentional exclusion of certain demographics. For instance, an AI-powered resume scanner programmed to reject applicants with employment gaps may disproportionately affect women or individuals with disabilities. Thus, federal contractors must validate AI systems to ensure compliance with EEO laws and take steps to mitigate adverse impacts.
OFCCP asserts its authority to investigate AI systems during compliance evaluations and complaint investigations. It scrutinizes all measures used by federal contractors in employment decisions, including those employing AI, to ascertain compliance with nondiscrimination laws. Federal contractors cannot delegate their EEO obligations when using third-party AI systems. They remain accountable for any discriminatory outcomes resulting from the use of such systems and must provide relevant information during OFCCP reviews or investigations.
The guide outlines promising practices for federal contractors to adopt, emphasizing transparency, engagement, and accountability in AI usage. These include providing notice to applicants and employees about AI usage, standardizing selection processes, monitoring for adverse impacts, and providing training on AI systems. Federal contractors are encouraged to verify vendors’ compliance with regulatory requirements, including recordkeeping, data quality, and fairness standards. Additionally, they should ensure that AI systems are accessible to individuals with disabilities and promote inclusive design principles.
Keeping track of the everchanging AI landscape can be tough, especially if you have questions and concerns about how it will impact you. Don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance.
