Technology (Artificial Intelligence)

Provides for the use of automated employment decision-making tools and artificial intelligence systems by a county, city, town, village, school district, board of cooperative educational services, county vocational education and extension board, district corporation, the state university of New York, the city university of New York, or community college; amends the effectiveness thereof.

Implements transparency requirements for developers of AI models; requires the establishment of an office for oversite of AI model developer transparency and reporting; makes related provisions.

This bill requires businesses to clearly tell customers when artificial intelligence (AI) is used in customer interactions, such as chatbots, automated support, or personalized ads. It applies to all companies, including those using AI for hiring tools or product decisions. Businesses must disclose AI use at the exact point of customer contact (like a chat window) using plain language in 12-point bold text, plus instructions on how to get human help. The law defines "AI" as systems that perform tasks requiring human-like intelligence, like understanding language or making decisions. It takes effect 120 days after enactment.

Prohibits the use of a wage-fixing algorithm in combination with personal or behavioral data to set or recommend wages or compensation; defines terms; establishes penalties for violations of such prohibition.

Creates penalties for likenesses altered or created by artificial intelligence being used for commercial gain; establishes a private right of action for the unlawful dissemination of still or video images generated by artificial intelligence.

Enacts the New York Artificial Intelligence Civil Rights Act establishing protections for individual rights with respect to computational algorithms; establishes protections against the use of algorithms involved in consequential decisions, such as those that impact people's rights, civil liberties, and livelihoods, including employment, banking, health care, the criminal justice system, public accommodations, and government services; prohibits developers and deployers from offering, licensing, or using covered algorithms that discriminate based on protected characteristics or that cause a disparate impact; requires developers and deployers of covered algorithms to complete independently audited pre-deployment evaluations and post-deployment impact assessments to identify, evaluate, and mitigate any potential biased use or discriminatory outcomes; requires developers and deployers to mitigate any harms identified by the pre-deployment evaluations and impact assessments and ensure that any covered algorithm performs reasonably well and is consistent with its publicly-advertised purpose; increases transparency around the use of covered algorithms in consequential decisions, including providing individuals a right to appeal an algorithmic decision to a human decision-maker; provides remedies for violations.

Requires covered businesses to annually report to the department of labor regarding the impact of artificial intelligence on hiring and the nature of artificial intelligence use for the previous year; requires the department of labor to file an annual report on the impact of artificial intelligence on hiring and the nature of artificial intelligence use in the state; establishes penalties for covered business that fail to submit such reports.

S 8872 prohibits employers from using automated systems (like AI or algorithms) to set individual employee wages based on surveillance data about workers' personal characteristics, behaviors, or biometrics. It directly affects employers who currently use such systems for wage decisions, requiring them to disclose data used and provide employees with the ability to correct or challenge data. Key provisions include banning algorithmic wage-setting (with limited exceptions for task-specific or cost-based wage decisions), mandating public procedures for data accuracy, and allowing private lawsuits for violations. Employers violating the law face civil penalties up to $10,000 per violation per employee, with additional damages available to affected workers.

Incorporates the 2022 Uniform Law Commission recommended amendments to the Uniform Commercial Code to provide for emerging technologies; addresses emerging technologies, providing updated rules for commercial transactions involving virtual currencies, distributed ledger technologies (including blockchain), artificial intelligence, and other technological developments.

Prohibits the use of any automated or algorithm-driven process by which the price charged for an essential good or service is adjusted on a real-time basis substantially in reference to any non-cost-based factor.