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Our office in North Carolina was asked about AI policy, based on information provided to them at an AI presentation this week:
North Carolina does not have specific, universal AI policy requirements for private employers, but existing and emerging regulations still apply. Private employers must ensure their AI use does not violate workers’ rights, such as those related to organizing, health, safety, wages, and anti-discrimination. The state also has a separate, specific requirement for healthcare providers to disclose AI use in patient care, effective July 1, 2025. Employers should also be aware of general principles like transparency, data protection, and ethical considerations, and may be subject to future legislation as AI use expands.
Existing and emerging requirements and considerations
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No discrimination: AI systems cannot violate or undermine workers’ rights to organize or obstruct health, safety, wage, anti-discrimination, and anti-retaliation protections, according to guidance from the Department of Labor.
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No excuse for violations: An employer is still responsible for the outcome of decisions made with AI, even if AI was the “responsible” part. Employers cannot use AI as an excuse for a decision that would otherwise be illegal.
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Transparency: Employers should be transparent about the AI systems they are using and have a clear governance system to evaluate them.
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Data protection: Employers must understand what information is being collected by AI and how it is being used before making decisions.
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Healthcare-specific rules: Healthcare providers in North Carolina must notify patients when AI is involved in scheduling, billing, or treatment recommendations, starting July 1, 2025.
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State government framework: The state’s framework for AI is focused on government use, but provides a good example of the principles being considered, such as safety, accuracy, reliability, and responsible use.
Best practices for private employers
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Develop a policy: Create a clear AI policy to guide employee use, ensure compliance, and build customer trust.
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Establish a governance system: Implement a governance structure to evaluate the AI systems your company uses.
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Be transparent: Be open with employees and the public about your company’s use of AI.
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Prioritize data privacy: Understand and communicate how employee and customer data is collected and used by AI.
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Ensure human oversight: Maintain human oversight in key decision-making processes, and don’t rely on AI as the sole decision-maker.