Many humans believe that they know how to hire the best candidate, but they may be wrong and different humans disagree. How would you evaluate AI? How would you know if it is making good or bad decisions? Is the NBA biased against whites? Just because you hire a disproportionate number of people from one group, that doesn't mean that the hiring system is unbiased.

One problem with cities passing laws like this is that cities are easy to flee. If bankers flee NYC, then there will be fewer people eating at NYC restaurants which will lay off restaurant workers. A city can go into a death spiral where it tries to fund everything with fewer taxpayers.