Introduction

The evolving landscape of artificial intelligence (AI) governance and regulation is prompting updates in policy guidelines and legal frameworks. Organizations and governments are increasingly focusing on the oversight of AI practices to ensure transparency, prevent discrimination [2] [3], and protect intellectual property rights.

Description

Glass Lewis has updated its policy guidelines for 2025 to include recommendations for board oversight of AI [1], emphasizing the necessity for effective oversight and transparency regarding AI practices. While the firm will not issue voting recommendations based solely on a company’s AI oversight [1], it may take action if there is evidence that inadequate oversight has negatively impacted shareholders. In such instances, Glass Lewis may evaluate the company’s governance practices and suggest voting against directors if the oversight or response to an AI-related incident is found lacking [1].

In New Jersey [1] [2] [3], the Attorney General and the Division on Civil Rights have affirmed that the New Jersey Law Against Discrimination (LAD) applies to algorithmic discrimination resulting from automated decision-making tools [3]. This guidance highlights that technological innovation must consider the needs of diverse communities to prevent discrimination [3]. The LAD prohibits discrimination based on protected characteristics such as race [3], religion [3], gender identity [3], and disability [3], holding employers accountable for discriminatory practices linked to AI systems [3], even without intent to discriminate [3]. Employers using AI tools [2], including those from third-party vendors [2], must ensure these systems do not yield discriminatory outcomes [2], as they will be held liable for any biased results [2]. To comply, employers are advised to conduct bias audits before implementing AI-driven decision-making tools and to perform regular assessments to ensure these tools do not disproportionately affect protected groups [2]. Additionally, AI hiring tools must accommodate accessibility needs [2], and productivity-tracking AI should not penalize employees for medical-related breaks [2].

The guidance encourages the development of AI tools to identify discrimination in hiring [2], housing [2], and credit [2], while also stressing the importance of enhancing enforcement of AI-related discrimination complaints [2]. Employers are required to notify candidates when AI is utilized in hiring processes [2], disclose AI’s role in employment decisions [2], and provide explanations for AI-driven hiring rejections [2]. New Jersey plans to offer public education sessions and compliance training on AI-related discrimination [2], which employers should leverage to stay informed about enforcement trends [2]. Other jurisdictions [1] [2], including New York City, Colorado [1] [2], and Illinois [2], have enacted similar regulations governing AI use in employment, mandating bias audits and notifications to applicants regarding AI usage [2].

Meanwhile, the UK government acknowledges that existing AI and copyright regulations are insufficient due to rapid technological advancements [1]. A recent consultation proposes a text and data mining exception with an opt-out for rightsholders [1], aiming to balance AI model development with the protection of creators’ rights [1]. The consultation also suggests practical solutions [1], such as machine-readable “Do Not Train” protocols [1], to safeguard both innovation and copyright, indicating that forthcoming regulatory changes may influence how other jurisdictions address AI and copyright issues [1].

Conclusion

The updates in AI policy guidelines and legal frameworks underscore the growing recognition of the need for robust oversight and regulation in the AI domain. These changes aim to ensure that AI technologies are developed and deployed responsibly, with a focus on transparency, non-discrimination [1] [2] [3], and the protection of intellectual property rights. As AI continues to evolve, organizations and governments must remain vigilant and proactive in addressing the challenges and opportunities presented by this transformative technology.

References

[1] https://www.jdsupra.com/legalnews/ai-legal-watch-january-2025-3660499/
[2] https://www.fisherphillips.com/en/news-insights/top-10-employer-takeaways-as-new-jersey-cracks-down-on-ai-discrimination.html
[3] https://workresearchlive.com/2025/01/17/new-jersey-steering-on-ai-employers-should-comply-with-state-anti-discrimination-requirements/