Axonα
Regulatory landscape

Why black-box hiring AI is already a liability.

Five jurisdictions have made AI-driven hiring decisions legally risky in the last three years. A pipeline that can't be explained fails every one of these regimes — not in theory, in active enforcement. This page is a short primer on what you owe, and how Axon is structured so you satisfy each of them by construction.

NYC · Local Law 144
Enforced since July 2023

AEDT bias audits for NYC hires.

Any automated employment decision tool (AEDT) used to substantially assist a hiring decision for a role located in or managed from New York City must:

  • Undergo an annual bias audit by an independent auditor, published publicly.
  • Disclose the use of an AEDT to candidates at least 10 business days before use.
  • Allow candidates to request an alternative non-AEDT selection process.

Penalties start at $500 per violation and escalate to $1,500 per subsequent violation per day. "We used ChatGPT to screen résumés" is a per-candidate violation.

How Axon answers

Every Axon decision carries a pipeline version hash. Auditors re-run your stored candidate-input on the stored pipeline version and verify the scoring is deterministic. Bias testing happens on the same interface, not as an afterthought PDF.

EU · AI Act Article 6 + Annex III
Obligations phase in through 2026

Hiring AI is high-risk. Treat it that way.

The EU AI Act classifies AI used in employment, worker management, and access to self-employment as high-risk (Annex III, point 4). High-risk systems must have:

  • Risk management over the full lifecycle (Art. 9)
  • Record-keeping of each operation with tamper-resistant logs (Art. 12)
  • Transparency and information to deployers and users (Art. 13)
  • Human oversight built into the design (Art. 14)

Maximum administrative fines for non-compliance reach €35M or 7% of global turnover. "The vendor's model did it" doesn't shift liability to the vendor.

How Axon answers

The audit log is append-only and hash-chained — tamper-resistant by design. Every decision records the reviewer (the human-oversight surface) next to the pipeline recommendation. The criteria UI makes it impossible to ship a rubric that hasn't been reviewed by a person.

Illinois · AIVIA
In force since 2020

AI in video interviews requires consent + disclosure.

The Artificial Intelligence Video Interview Act requires employers using AI to analyze interview videos to: notify applicants, explain how it works, obtain consent, limit sharing, and destroy copies on request.

How Axon answers

Axon doesn't touch video in the pilot, but the disclosure-and-destruction scaffolding applies equally to résumé analysis and is exposed via per-candidate data retention controls.

Maryland · HB 1202
In force since 2020

Facial recognition in hiring requires consent.

Maryland prohibits using facial recognition services during pre-employment interviews without written candidate consent.

How Axon answers

Axon's node palette does not include a facial-recognition primitive. The audit log would surface such a node immediately if introduced.

Colorado · SB 205
Takes effect Feb 2026

Colorado AI Act: duty of care + impact assessments.

Colorado will impose a duty of reasonable care on deployers of high-risk AI to prevent algorithmic discrimination, including mandatory impact assessments and documentation obligations very similar to the EU AI Act's.

How Axon answers

Axon produces impact-assessment-ready artifacts by default: pipeline version graphs, exclusion lists per criterion, distribution of scores per run, reviewer-override rates.

Fine print

This is an alpha. Not legal advice.

Axon is a portfolio pilot. It is structured to satisfy the above regimes, but any production deployment requires counsel review, real audit partners, and per-jurisdiction rollout plans. Talk to your lawyers.

Open console