A
AEDT(Automated Employment Decision Tool)
Any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for employment decisions that impact natural persons.
Adverse Action Notice(Adverse Action Notification)
A notification provided to a candidate or employee when a negative employment decision is made based wholly or partially on information obtained through automated means. The notice typically must explain the decision, the data used, and appeal rights.
AIVI(Artificial Intelligence Video Interview Act (Illinois))
Illinois law requiring employers to notify applicants and obtain consent before using AI to analyze video interviews. Employers must explain how AI works and what characteristics it evaluates.
Algorithmic Discrimination(Algorithmic Discrimination / Algorithmic Bias)
Any condition in which the use of an AI system results in an unlawful differential treatment or impact that disfavors individuals based on their actual or perceived membership in a protected class.
Algorithmic Accountability(Algorithmic Accountability)
The principle that organizations deploying AI systems must be responsible and answerable for their algorithms' outcomes, including discriminatory impacts. Encompasses transparency, auditability, bias testing, human oversight, and remediation of algorithmic harms.
AI Risk Management(AI Risk Management Program)
Structured processes and governance to identify, assess, mitigate, and monitor risks associated with AI system deployment. Includes technical testing, bias audits, impact assessments, human oversight, incident response, and continuous monitoring.
B
Bias Audit(Independent Bias Audit)
An impartial evaluation by an independent auditor that includes testing an AEDT for disparate impact based on race, ethnicity, and sex. The audit examines selection rates, scoring rates, or other outputs to identify potential discrimination.
BIPA(Biometric Information Privacy Act (Illinois))
Illinois law that regulates the collection, use, storage, and destruction of biometric identifiers and biometric information. Requires informed written consent before collecting biometric data and prohibits sale or profit from biometric information.
C
Consequential Decision(Consequential Decision)
Under Colorado AI Act, a decision that has a material legal or similarly significant effect on a consumer. In employment, this includes decisions that affect terms of employment, hiring, firing, promotions, and compensation.
CCPA ADMT(California Consumer Privacy Act - Automated Decision-Making Technology Regulations)
California regulations under CCPA/CPRA governing automated decision-making technology that uses personal information to make or facilitate decisions that produce legal or similarly significant effects. Requires businesses to provide opt-out rights, transparency about logic, and access to information used in automated decisions.
Consent Withdrawal(Right to Withdraw Consent)
The right of candidates and employees to withdraw previously-given consent for AI processing of their data at any time. Under laws like Illinois BIPA and AIVI, individuals can revoke consent and require deletion of biometric data or AI analysis.
Compliance Certification(AI Compliance Certification)
Formal certification or attestation that an AI system meets specific fairness, accuracy, or compliance standards. May be self-certified by vendors, validated by third-party auditors, or required by regulations. Certifications provide evidence of compliance for deployers.
F
Four-Fifths Rule(Four-Fifths Rule (80% Rule))
A guideline for determining adverse impact in employment selection. If the selection rate for a protected group is less than 80% (or 4/5ths) of the selection rate for the group with the highest rate, adverse impact may be indicated.
Facial Recognition Ban(Facial Recognition Technology Bans)
Legal prohibitions on using facial recognition technology in employment contexts. Some jurisdictions ban facial recognition entirely, others restrict it for hiring/screening, and some require consent and regulation. Bans aim to prevent biometric surveillance and discrimination.
H
High-Risk AI System(High-Risk Artificial Intelligence System)
Under the Colorado AI Act, any AI system that makes or is a substantial factor in making a "consequential decision" affecting consumers. In employment, this includes decisions about hiring, firing, promotions, compensation, and job assignments.
Human Review(Human Review / Human-in-the-Loop)
The requirement that a human being review and have meaningful involvement in employment decisions that are informed by AI systems. May include the right to appeal automated decisions to a human reviewer.
Human Oversight(Human Oversight of AI Systems)
The requirement that humans maintain meaningful control, supervision, and decision authority over AI systems used in employment. Human oversight ensures AI assists rather than replaces human judgment and provides accountability for outcomes.
I
Impact Assessment(AI Impact Assessment / Algorithmic Impact Assessment)
A systematic evaluation of how an AI system may affect individuals and groups, particularly regarding potential discrimination, privacy, and civil rights implications. Assessments typically document the system's purpose, data inputs, decision logic, and safeguards.
Impact Ratio(Impact Ratio / Selection Rate Ratio)
The ratio comparing the selection rate of one demographic group to another, typically expressed as the rate for the lower-selected group divided by the rate for the higher-selected group. Used to quantify potential disparate impact.
Informed Consent(Informed Consent for AI Use)
The requirement to clearly disclose AI use to candidates/employees and obtain their agreement before processing their data with AI systems. Must include explanation of what AI is used, what it evaluates, and how decisions are made.
N
NIST AI RMF(NIST Artificial Intelligence Risk Management Framework)
A voluntary framework developed by the National Institute of Standards and Technology to help organizations design, develop, deploy, and use AI systems in ways that minimize negative impacts and maximize trustworthiness.
NLP in Hiring(Natural Language Processing in Hiring)
Use of NLP and large language models to analyze text in resumes, cover letters, applications, interview transcripts, or performance reviews. NLP extracts meaning, sentiment, skills, and qualifications from human language to evaluate candidates or employees.
P
Predictive Analytics(Predictive Analytics in Employment)
Use of statistical models and machine learning to predict future employment outcomes such as job performance, turnover risk, promotion readiness, or hiring success. Predictive models analyze historical data to forecast which candidates/employees will succeed or fail.
Protected Class(Protected Class / Protected Characteristics)
Groups protected from employment discrimination under federal and state laws. Federal protected classes include race, color, religion, national origin, sex, age (40+), disability, and genetic information. States add additional protections for sexual orientation, gender identity, marital status, and others.
R
Right to Explanation(Right to Explanation of Automated Decisions)
The right of individuals to receive meaningful information about the logic, significance, and consequences of automated decision-making systems that affect them. Includes understanding what data was used, how it was processed, and why a particular outcome was reached.
Right to Opt-Out(Right to Opt-Out of Automated Decision-Making)
The right to refuse or withdraw from AI-driven employment processes and receive alternative human-based evaluation. Some jurisdictions require employers to offer non-AI alternatives when candidates opt out of automated screening.
Reasonable Accommodation(Reasonable Accommodation (ADA + AI Context))
Employer obligation under ADA to modify application processes, assessments, or working conditions to enable individuals with disabilities to participate equally. AI hiring tools must provide accommodations such as extra time, alternative formats, or assistive technology compatibility.