U.S. HR compliance faces rapid regulatory changes regarding AI

Businesses are facing a rapidly evolving compliance landscape, with over 200 HR-related laws enacted in the United States through mid-summer. This surge in regulatory change includes several new laws governing the use of artificial intelligence in employment contexts, such as hiring, promotions, compensation, and performance management.

The increasing volume of regulations is creating fragmentation across federal, state, and local levels, complicating human capital management (HCM). While AI can assist in tracking these changes, experts at ADP advise that AI is not a standalone solution. Because HR processes are intricate, AI-enabled tools must be paired with human judgment and accountability to navigate ambiguity and ensure compliance.

New regulations often require companies to disclose the use of AI to candidates and employees, conduct bias audits, and perform risk assessments. These requirements may vary significantly depending on industry, company size, and geographic location.