Algorithmic Software Faces Growing State And Local Regulation – What Companies Should Do Now

With advancements in artificial intelligence, the use of algorithmic software has increased across a variety of industries. So too has scrutiny by antitrust agencies, private plaintiffs, and state and local governments across the country. In recent months, laws aimed at curbing the use of algorithmic software to recommend residential rental rates have been enacted in jurisdictions spanning from Hoboken to Minneapolis to Washington. Most recently, New York Governor Kathy Hochul signed into law legislation that prohibits New York landlords from setting or adjusting rents, lease terms, or occupancy targets based on recommendations from software or data analytics services that perform a "coordinating function."