New Automated Decision-Making Laws: Four Tips For Compliance

With the widespread adoption of artificial intelligence ("AI") and other complex algorithms across industries, many business decisions that used to be made by humans are now being made (either solely or primarily) by algorithms or models. Examples of automated decision-making ("ADM") include determining:

• Who gets an interview, a job, a promotion, or employment discipline;
• Which ads get displayed for a user on a website or a social media feed;
• Whether someone's credit application should be approved, and at what interest rate;
• Which investments should be made;
• When a car should break or swerve to stay in a lane;
• Which emails are spam and should not be read; and
• Which transactions should be flagged or blocked as possibly fraudulent, money laundering, or in violation of sanctions regulations.