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Will AI give you the job? Automated hiring tools spark discrimination and secrecy lawsuits

Will AI give you the job? Automated hiring tools spark discrimination and secrecy lawsuits

Summary

A class action lawsuit accuses Eightfold AI of using automated hiring software that ranks job applicants without letting them see or challenge the results. This legal case is part of a growing concern about how AI tools in hiring might discriminate against candidates and operate without transparency.

Key Facts

  • Erin Kistler, a product manager with 20 years of experience, has applied for thousands of jobs but never received an interview.
  • Kistler sued Eightfold AI, a company whose hiring software is used by many companies, including those where she applied.
  • The lawsuit claims the AI hiring system acts like an undisclosed report on candidates and doesn’t let them know or dispute their scores.
  • Other lawsuits target Meta and IBM for allegedly using AI systems that discriminated against employees or applicants based on leave or age.
  • About 90% of employers used some form of automated hiring tools last year, from filtering resumes to AI conducting interviews.
  • Eightfold AI collects data from resumes, LinkedIn, and social media to score candidates on a scale from 0 to 5 predicting job success.
  • Experts say these AI tools could introduce or worsen bias and companies usually do not disclose when AI is used in hiring decisions.
  • Eightfold AI denies the lawsuit’s claims and says it will defend itself; IBM also denies using AI to exclude candidates.
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