In this discussion, Eric Felsberg and Joseph Lazzarotti explore the complex question of whether a given AI tool qualifies as “AI” under various legal frameworks, emphasizing its critical implications for workplace compliance. They highlight that while many technologies used daily incorporate AI, not all fall under regulatory scrutiny. From a federal perspective, laws like Title VII and the Uniform Guidelines on Employee Selection Procedures require employers to monitor AI tools for potential disparate impact, especially when used in hiring. However, state and local laws—such as those in New York City, California, and Colorado—offer differing definitions and requirements, creating a challenging patchwork for employers to navigate. These laws may mandate bias audits, transparency, and specific notices, but their applicability depends heavily on the tool’s function and jurisdiction.

The conversation also underscores the importance of understanding AI’s use context, as the same technology might trigger compliance obligations in employment decisions but not in other business functions. Additionally, contractual agreements may impose further restrictions on AI use beyond legal requirements. Both experts stress the necessity of conducting thorough legal and operational assessments before deploying AI tools to manage risks effectively and ensure compliance. Given the evolving regulatory landscape and limited litigation precedent, employers must remain vigilant and proactive in addressing AI governance in the workplace.