Deploying AI while regulations are pending

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The use of artificial intelligence in the workplace is on the rise, but in what was described as a “Wild West” scenario today at the Tech Forward NJ conference in Edison, protecting the use of AI through government regulation means developing policies that are adaptable. Because today’s AI technology is very different from tomorrow’s AI technology.

Hosted by the New Jersey Chamber of Commerce, the session, moderated by NJBIA Government Research Analyst Jack Ramirez, brought together state legislators, lawyers, and information technology experts to discuss the challenges businesses and government face in the rush to implement regulations.

Mr. Ramirez asked about S-4075, a pending bill introduced by Sen. Andrew Zwicker (D-16). The bill seeks to establish regulations and guardrails regarding the use of AI-based systems for electronic surveillance in employment and public services. The bill would ensure that workers and benefit applicants are protected from error-prone or discriminatory automated decisions.

Zwicker said the bill seeks to bridge the gap between companies and employees on how AI surveillance should be implemented in the workplace. “We know who is a good employee and who is a problem employee, but what does it mean to use AI to monitor employees?” Zwicker asked. He said the bill seeks to ensure the human element is reflected in hiring, firing and discipline decisions.

Rep. Christopher DePhillips, a 40-year-old Republican who is also a partner at Bernstein DePhillips & Calosi, said it’s difficult as a lawyer to advise clients on a regulatory environment that doesn’t fully exist yet.

“Senator Zwicker’s new bill seeks to create a regulatory framework that we don’t have,” DePhillips said.

He said there are some good ideas in the bill, but he is concerned that the government in general will not always act efficiently. “We don’t always stay ahead of the curve while issues develop. Sometimes we sit and wait to see how things turn out. We’re starting to see a scenario where we end up going through a regulatory framework, but what happens is the technology is going to be very different than it is now. That’s going to be one of the challenges both as lawyers and as legislators,” he said.

Chris Rascalzewski, chief transformation officer at technology services provider Integris, said his company provides IT security services, among other things, to small and medium-sized business customers across the country. He called Entegris’ cybersecurity department a “no” department when it comes to AI, but his department says “yes” to its implementation.

His team’s job is to ensure that AI is more than just a cost center and generates a return on investment for Integris customers. He advises companies not to act like a “No Department” because of the risk of employees taking AI underground. “Then that would be even more of a problem for you, you’re talking about the whole concept of shadow AI. [the risk of data] It’s leaking,” Rascalzewski said.

Discussing the use of AI in the hiring process, Kate Sherlock, partner at Archer & Greiner, said companies are liable when they use AI tools that result in algorithmic discrimination. “Third-party tools do not absolve you,” she said, explaining that the company would defend against New Jersey anti-discrimination laws.

Overall, Sherlock said private sector customers are deploying AI responsibly. “Companies are working internally with their IT and legal teams, and if they are too small to have in-house resources, they are hiring outside consultants to advise them on how to responsibly, quickly and efficiently deploy these powerful tools,” she said. “They also recognize that there is a good business case for taking responsibility for the deployment and use of AI, even if it is not currently regulated by specific legislation.”

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