A class action lawsuit has been filed in California against Eightfold AI, a Silicon Valley company that develops hiring software. The lawsuit, filed in January, claims that the company's automated screening functions as an undisclosed consumer report, ranking job applicants on their likelihood of success without allowing them to see or challenge the results.
Erin Kistler, a product manager with nearly 20 years of experience, is leading the lawsuit. She applied for thousands of jobs at companies including Paypal, Microsoft, and Netflix, which use Eightfold AI's software, but never received an interview.
This case is one of several new legal challenges regarding companies' use of AI in employment decisions. Other lawsuits include allegations against Meta for an internal AI system reportedly targeting workers for layoffs due to parental or medical leave, and a lawsuit against IBM alleging AI tools discriminated against older workers.
Ifeoma Ajunwa, a professor at Emory University School of Law, noted that there is no law requiring disclosure of AI hiring systems, meaning companies are not always informing workers when AI is used for evaluation. A World Economic Forum report indicated that 90% of employers used some form of automation in hiring last year.
Eightfold AI denied the allegations, stating they believe the claims are without merit. IBM also denied using AI to automatically screen out candidates and affirmed it does not condone discrimination.