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Partnership Testimony on the Impact of Artificial Intelligence on the Workforce

October 19, 2024

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Impact of Artificial Intelligence on the Workforce
New York State Assembly Standing Committees Labor, Science & Technology

Over the next two decades, Artificial Intelligence (AI) will enable the most significant technological advances in human history. The potential of AI is a source of both hope and trepidation, leading to calls to limit AI’s use and slow the pace of its application, especially with respect to machines replacing people in the workforce. Those with the greatest understanding of AI urge caution in its applications and efforts to regulate it.

Given the infancy of this technology and the growing importance of the tech sector to New York’s economy and tax base, state and local government should proceed carefully with policies intended to manage the use of AI and must work closely with experts in the private sector and academia to understand its potential benefits to society, as well as its threats.

One of the most significant advantages that AI could provide is closing the skills gap in our workforce. It could provide individuals the support they need to supplement their skills and increase productivity. AI’s ability to automate aspects of a job’s routine and repetitive tasks will enable professionals to focus on other essential aspects of their jobs, ranging from collaborative problem solving to creative thinking and strategy, and more robust communication. AI tools and applications such as ChatGPT and Generative AI will democratize opportunities typically reserved for those with more resources or education.

The Biden administration and Congress are making a significant investment in understanding the implications of AI and determining how it can and should be regulated. For New York or any state to get ahead of these federal efforts is not likely to be productive.

New York City has already made a mistake in passing premature legislation, which is essentially impossible to implement. In 2021, the New York City Council passed a bill to eliminate bias when an employer uses “automated employment decision tools.” This legislation was rushed through without consultation with employers and before any guidance had been developed by the federal government or nationally recognized standard-setting entities that likely would have helped us understand how to regulate these tools.

The resulting law has caused substantial confusion for employers and city agencies. It is still unclear, for example, what tools are subject to the law and who is qualified to conduct a bias audit. Most importantly, it is far from certain that this law will do anything to prevent discrimination in employment decisions. We hope the state will take a more thoughtful approach and not move ahead of the federal government as research and regulatory guidance advances.

This year, the National Science Foundation announced $140 million in funding to launch seven new National AI Research Institutes. The White House also established an independent committee from leading AI developers to evaluate AI systems, and the Office of Management and Budget is crafting policy guidance on the use of AI systems by the U.S. government, which will inform both the private and public sectors.

Additionally, the U.S. Equal Employment Opportunity Commission has provided guidance on using AI and machine learning tools to ensure they comply with federal civil rights laws regarding hiring and discrimination.

With extensive federal work underway and so much unknown in this space, we recommend New York establish a task force with representatives of government, business, labor, and academia to track the development of AI and its regulation with the goal of ensuring that our state is maximizing the benefits of this emerging field for our workforce and our economy.

New York should not adopt overly prescriptive or broad legislation that could curtail the tech industry’s growth in our state or that might disadvantage New York companies applying AI in their businesses. New York should position itself to adapt to this technology productively and responsibly.

The Partnership and its members look forward to collaborating with you to ensure New York is a leading place to invest and grow a business with a workforce ready for the future.