This article is general information, not legal advice. The rules below change often and depend on where your stores and your candidates are. Confirm how they apply to you with your own counsel.
More dealerships are using AI to screen and interview applicants, and lawmakers have noticed. The good news: the rules so far mostly ask for things a well-run hiring process should do anyway: tell candidates what's happening, keep people in charge of decisions, avoid bias, and protect the data. Here's the landscape at the time of writing.
United States
No single federal AI hiring law, but existing law still applies. Anti-discrimination laws such as Title VII, the ADA and the ADEA apply to hiring decisions no matter what tools you use. If a tool screens out people in a protected group at a higher rate, or can't accommodate a candidate with a disability, the employer can still be responsible.
New York City (Local Law 144). Employers using an "automated employment decision tool" for candidates for jobs in NYC must have the tool independently audited for bias each year, publish a summary of the audit, and notify candidates in advance.
Illinois. The Artificial Intelligence Video Interview Act requires employers that use AI to analyze video interviews to tell applicants, explain how the AI works, get their consent, limit who sees the videos, and delete them on request. Illinois has also amended its Human Rights Act to address discriminatory use of AI in employment decisions and to require notice when AI is used.
Colorado. Colorado's AI Act covers "high-risk" AI systems, including those used in employment decisions, with duties for both developers and the businesses that use them (risk management, impact assessments and notices). Its effective date has been pushed back before, so check its current status.
California. California's civil rights regulations now address automated decision systems in employment, and the state's privacy regulator has adopted rules on automated decision-making technology under the CCPA, with compliance dates phased in over time.
Recording consent. Several states require every party's consent to record a call. Whatever tool you use, candidates should be told clearly, before the interview starts, that it is recorded.
Canada
Federal privacy law (PIPEDA) applies to personal information collected in the course of commercial activity in most provinces: collect only what you need, be open about how you use it, get meaningful consent and protect it.
Quebec (Law 25). Organizations must inform people when a decision about them is based exclusively on automated processing, and let them ask about it and have it reviewed by a person. Privacy impact assessments and strict consent rules also apply.
Ontario. Employment standards changes require larger employers to disclose in publicly advertised job postings when AI is used to screen, assess or select applicants.
Other provinces (such as Alberta and British Columbia) have their own private-sector privacy laws that cover employee and applicant information.
Practices that hold up almost everywhere
- Tell candidates up front that an AI interviewer is involved, that the interview is recorded, and what happens with it.
- Keep a person in charge of decisions. Use AI to gather and summarize information; have your managers decide who moves forward.
- Ask job-related questions only. Stay away from protected characteristics, health and family status, and anything unrelated to the role.
- Be consistent. Every applicant to a role should get the same interview and be scored on the same criteria.
- Protect and limit the data. Keep it secure, keep it only as long as you need it, and delete it on request where the law gives candidates that right.
- Know your vendor. Ask how the tool is tested for fairness, where data is stored, and whether your data is used to train AI models.
How Cenivoz approaches it
Cenivoz is built around those practices. Candidates see who is interviewing them and that it's recorded before they start. Every applicant to a job gets the same structured interview, scored on what they actually said. The interviewer never asks about protected characteristics, pay or a candidate's driving record. Your team reviews the transcript and recording and makes every decision. And your data and your applicants' data are never used to train AI models.
Questions about how that fits your stores? Book a demo and we'll walk you through how candidates are informed and how recording works.
See every applicant interviewed the day they apply.
Cenivoz interviews your dealership's applicants by phone or web, 24/7, and gives your managers a scorecard, transcript and recording.
