Executive Order on Artificial Intelligence

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APPLIES TO

All Employers

EFFECTIVE

October 30, 2023

  

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Quick Look

  • President Biden issued an “Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” to address growing concerns surrounding the use of artificial intelligence in various areas, including labor and employment.
  • Federal agencies are called to create new guidance and training and to develop best practices to combat AI-related concerns.

Discussion

On October 30, 2023, President Biden issued  an “Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” to address growing concerns surrounding the use of artificial intelligence in various areas, including labor and employment. The Executive Order calls to action many federal agencies, and tasks them with developing guidance, trainings, and best practices that can be implemented to minimize potential harms from the use of AI technology.

Key components of the Executive Order applicable to employers include:

  • The Secretary of Labor is ordered to develop principles and best practices to mitigate the harms and maximize the benefits of AI for workers by addressing job displacement, labor standards, workplace equity, health, and safety, and data collection. Once these best practices are identified, the agencies are expected to adopt these guidelines as part of their programs.
  • The Secretary of Labor is also responsible for issuing guidance emphasizing that employers must ensure that employees are appropriately compensated for all hours worked under the Fair Labor Standards Act when using AI tools to monitor or augment employees’ work.
  • The Chairman of the Council of Economic Advisors is required to prepare a report outlining AI’s potential impacts on the labor market, and the Secretary of Labor must produce a report identifying options for strengthening federal support for workers facing labor disruptions caused by AI.
  • The U.S. Department of Justice is directed to increase coordination efforts with federal civil rights offices on AI and algorithmic discrimination issues.
  • The Federal Trade Commission is encouraged to use the agency’s rulemaking authority to “ensure fair competition in the AI marketplace and to ensure that consumers and workers are protected from harms that may be enabled by the use of AI.”

Most agencies have between 30 to 365 days to fulfill their respective requirements under the Executive Order. Even though the text of the document largely focuses on federal workers, private employers may be impacted by any developing guidance. Employers should continue to monitor developments related to AI in the workplace, and ensure that their policies and procedures for using such technologies are compliant with applicable federal, state and local laws.

Action Items

  1. Review workplace policies and procedures regarding the use of AI technology for compliance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2023 ManagEase