HackerRank Services and AI Laws FAQs
Last updated: August 12, 2025
These FAQs provide some background on HackerRank’s approach to the New York City Local Law related to employer usage of the Automated Employment Decision Tool (AEDT) as it relates to HackerRank customers using HackerRank services that use artificial intelligence or machine learning.
What is an AEDT?
The NYC Law defines an AEDT as 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 making employment decisions that impact natural persons.
Does the NYC Law cover HackerRank services AEDTs?
Screen/Interview
HackerRank’s Screen and Interview services are not classified as AEDTs. These services do not involve artificial intelligence (AI), machine learning (ML), or similar technologies, nor do they generate outputs through any AI-based processing. As such, these tools fall outside the scope of the AEDT law.
Plagiarism Detection/Image Analysis
HackerRank’s Plagiarism Detection and Image Analysis functionalities, collectively referred to as AI Tools, use AI-based methods and produce simplified scoring outputs. These tools are optional features that customers can enable as part of their test integrity setup.
Whether these AI Tools are deemed AEDTs under the NYC Law depends on how the customer uses them, whether the customer uses HackerRank’s AI Tools to assist or replace discretionary decision-making substantially.
Access your Test Integrity settings to make appropriate changes based on your requirements.
The option is available under the Proctoring settings in the Test Integrity tab of a Test.
If a HackerRank customer uses the results of our Automated Tools to “substantially assist or replace” human decision-making by, for example, automatically rejecting candidates for whom plagiarism or image anomalies are flagged, then our Automated Tools will likely be considered AEDTs. But, if the customer uses the results as one of many factors in determining a candidate's fitness, they likely won’t be considered AEDTs.
What does the NYC Law require when using AEDTs?
If a HackerRank customer uses our AI Tools as AEDTs, the NYC Law requires the customer to provide New York City candidates subject to the AEDT with certain notices and the option to request an alternative selection process or accommodation.
The NYC Law also requires that our AI Tools undergo a bias audit and that the customer make that bias audit available to its candidates.
A bias audit of such a tool was conducted no more than one year before its use, and a summary of the results of the most recent bias audit of such a tool, as well as the distribution date of the tool to which such audit applies, was made publicly available on the employer or employment agency's website prior to its use.
How does HackerRank assist customers with their NYC Law compliance obligations?
If a customer uses our Automated Tools as AEDTs, HackerRank is taking multiple steps to help them comply with their obligations under NYC Law.
Defaulted Off: Within the HackerRank product, our automated tools are defaulted to off. They will not be enabled unless the customer turns them on. This gives the customer a choice as to whether they want to use our tools that could qualify for AEDTs.
Customer Reminder: When a customer user turns on our Automated Tools, the user will receive a pop-up reminding the user that these automated tools use automated processing based on AI and that the customer may need to comply with applicable laws related to automated processing.
Consent: If the customer enables an Automated Tool, HackerRank will secure the candidate's consent prior to using it. If the candidate does not give consent, the candidate will not be able to participate in the feature using the Automated Tool. This consent is not intended to replace the 10-day advanced notice and alternative method request the customer must offer the candidate. Still, it is an added precaution (based on GDPR, not necessarily the NYC Law).
Bias Audit: Our Automated Tools have undergone a bias audit. For this first year, we are using test data for our bias audit. Customers will likely need to provide us with their historical data to conduct the bias audit in future years.
HackerRank's AI-powered plagiarism solutions have undergone an independent bias audit that is consistent with NYC AI Law.