The use of artificial intelligence in hiring practices is among the areas targeted by a sweeping new mandate enacted by New Jersey's Division on Civil Rights meant to shore up protections against discrimination.

The rules codified the legal standards for disparate impact liability when it comes to discrimination in not just artificial intelligence but also housing, citizenship, financial lending, contracting and more. Disparate impact discrimination is the result of seemingly neutral practices and policies that negatively affect a certain group of people, New Jersey Attorney General Matthew J. Platkin said in an announcement Wednesday.

"These landmark rules, which are the most comprehensive disparate impact rules in the country, make clear that the Law Against Discrimination prohibits discrimination in all of its forms, and they confirm New Jersey's commitment to upholding the LAD's protections and continuing our state's longstanding leadership on civil rights," he said.

Disparate impact discrimination liability is one of the most powerful tools to combat policies and practices that harm historically marginalized communities, Platkin added.

The new rules provide examples to clarify what might constitute disparate impact discrimination against protected groups based national origin, religion, gender identity or expression, disability, or sexual orientation. Unless a regulated entity can show its practices or rules have a "substantial, legitimate, nondiscriminatory interest," they are prohibited by the new state rules, Platkin said.

For example, the use of AI and other advanced technology for online applications like facial recognition may discriminate against the protected groups, Platkin said. A policy automatically stopping applicants with a low credit score from renting could also be unlawful if a less discriminatory method to determining eligibility is available, such as examining other factors like their ability to pay rent through a steady job or income, the announcement said.

Other examples include consideration of a person's criminal history in hiring, citizenship requirements not based on federal or state law, language restrictions, and law enforcement patrolling practices.

"The comprehensive rules announced today provide increased clarity on disparate impact liability and help improve the way we enforce civil rights in New Jersey," Division on Civil Rights Director Yolanda N. Melville said.

--Editing by Nick Siwek.