California’s Senate Bill 7 (SB 7) aims to regulate AI in employment by prohibiting employers from using automated decision systems (ADS) to infer criminal or credit history, including through AI-powered social media screening tools. The bill introduces transparency requirements, mandates human oversight, and restricts AI from analyzing sensitive characteristics. Employers relying on AI for background checks may face challenges in risk assessment and need to adjust practices to comply with the new regulations.
California SB 7: How AI Hiring Rules Could Impact Background Checks
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