Content for this Newsletter:
- AI and Employment Law
- AI Surveillance
- AI and Political Ads
- AI and Privacy
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Now, let’s move on to the latest developments in AI law.
1. AI and Employment Law
a. CVS “Lie Detector” Lawsuit
CVS is settling a lawsuit alleging it used AI to analyze job applicants’ facial expressions during video interviews. A Massachusetts resident claimed CVS violated state law by using HireVue and Affectiva technology to assign “employability scores” based on facial expressions such as “smiles, surprise, contempt, disgust, and smirks,” without notifying applicants or allowing them to opt out. The lawsuit alleges the AI assessed candidates’ “conscientiousness and responsibility,” including “innate sense of integrity and honor.” While the settlement terms are confidential, it raises serious concerns for companies using AI in hiring practices.
b. ACLU vs AON
The ACLU has filed a complaint with the FTC accusing Aon, a major hiring technology vendor, of deceptively marketing its AI-powered hiring tools as bias-free and effective at improving diversity. The complaint alleges that Aon’s personality assessments, video interviewing tools, and cognitive ability tests discriminate against job applicants based on race and disability. The ACLU
argues that these tools assess traits unrelated to job performance, such as positivity, emotional awareness, and liveliness, and disproportionately impact individuals with autism, mental health conditions, and Black job candidates. In addition to the FTC complaint, the ACLU has filed a class-action lawsuit against Aon and an employer for alleged discrimination based on race and
disability.
In my article published by the American Bar Association, I provide practical strategies for companies to prevent potential government investigations, lawsuits, fines, class actions, or reputational damage: https://www.americanbar.org/groups/business_law/resources/business-law-today/2024-april/navigating-ai-employment-bias-maze/
2. AI Surveillance
The Paris Olympics are utilizing extensive AI surveillance to detect potential threats. While authorities claim it enhances security, privacy advocates express concerns about civil liberties infringements, potential biases, and the creation of a precedent for widespread surveillance.
Despite French assurances that the AI surveillance system during the Olympics will not process biometric information, privacy advocates remain concerned. They argue that identifying individuals in crowds, even without facial recognition, constitutes unique identification and triggers data protection regulations. Additionally, experts believe that detecting the intended threats requires analyzing behavioral data, which inherently involves processing biometric information.
California will be hosting the 2028 Summer Olympics. Will it adopt AI surveillance as well? Depending on the scope of the surveillance, CCPA and CPRA may place certain limitations on it.
3. AI and Political Ads
The FCC is considering a new rule that would require political ads containing AI-generated content to disclose that fact to viewers and listeners. This proposal comes in response to growing concerns about the potential misuse of AI to
spread misinformation. The FCC aims to increase transparency and allow voters to make informed decisions.
Key points of the proposal:
Disclosure requirement: Political ads using AI would need to include an on-air announcement stating the use of AI.
Definition of AI: The FCC is seeking public input on a definition for AI-generated content.
Potential impact: The rule could affect political campaigns and advertising strategies.
Opposition: Some commissioners and the FEC have expressed concerns about the FCC’s authority and potential impact on the election.
The FCC will now gather public feedback before finalizing the rule.
4. AI and Privacy
The Texas Attorney General has secured a $1.4 billion settlement with Meta (formerly Facebook) to halt the company’s unauthorized collection and use of Texans’ biometric data, which violated the Capture or Use of Biometric Identifier Act (CUBI) and the Deceptive Trade Practices Act. Meta’s facial recognition feature, an AI technology introduced in 2011 as Tag Suggestions, automatically captured facial geometry from photos without users’ knowledge or consent.
This landmark settlement, the largest ever obtained by a single state, surpasses the $390 million settlement reached by 40 states with Google in 2022. It marks the first lawsuit and settlement under Texas’s CUBI and sends a strong warning to companies violating privacy rights.
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