A new bill filed in Washington, D.C. aims to regulate algorithmic decision making tools.

The bill, which comes on the heels of another one filed in New jersey and a law already in effective in New York City, could have far reaching effects.

Points to note:

• The bill applies not only to companies using AI tools, but also to the service providers providing them. Companies also are required to contractually require the service providers to ensure compliance.
• The bill uses a very broad definition of personal information that includes postal address, IP address, MAC address, unique device identifier, VIN, race, gender identity, products or services purchased, consumer histories or tendencies, real time or historical geolocation data more specific than a 50 mile radius, education records and inferences drawn from that information.
• The bill applies to decisions that affect things like the approval or offer of credit, education, employment and housing.
• An annual audit for discrimination is required with annual reporting requirements.
• The audit needs to be carried out by a third party.
• A clear notice is required to be provided, and the bill names how to provide it (including a just in time pop-up).