Bill > A03930

This bill establishes comprehensive regulations for the use of artificial intelligence (AI) and algorithmic tools in rental housing and lending decisions across New York State. The bill requires landlords and banks using automated decision tools to conduct annual "disparate impact analyses" to assess whether these AI systems unfairly discriminate against applicants based on characteristics like race, sex, or ethnicity. When using such tools, landlords and banks must notify applicants that an AI system is being used, explain what characteristics the tool evaluates, disclose data sources and retention policies, and provide specific reasons for any application denials. Applicants must be notified at least 24 hours before an AI tool is used and must be given an opportunity to request an alternative selection process or opt out. The bill also prohibits landlords from using pricing algorithms that incorporate non-public competitor data and mandates transparency about how personal data is collected, processed, and shared. Additionally, the bill requires state agencies to conduct a comprehensive study on how AI and machine learning might contribute to housing discrimination and redlining, with findings to be reported to the governor and legislature within one year. The attorney general is empowered to investigate potential violations and take legal action to ensure compliance with these new regulations.