AI Screening Tech Lands Company in Legal Battle with Job Seekers

AI Screening Tech Lands Company in Legal Battle with Job Seekers

A group of job seekers has initiated a class-action lawsuit against Eightfold AI, challenging the use of its AI-driven screening technology. This legal action claims that the company’s software, which evaluates applicants on a 1-to-5 scale, should conform to regulations similar to those governing credit bureaus outlined in the Fair Credit Reporting Act.

Details of the Lawsuit Against Eightfold AI

Filed in California, the lawsuit argues that Eightfold AI’s screening process is opaque, employing a “black box” approach. This method aggregates data from various sources, such as LinkedIn, to score applicants. As a result, many job seekers can be excluded from consideration without any clear reasoning or means to rectify potential errors in their applications.

  • Plaintiff: Erin Kistler, an experienced tech worker.
  • Application success rate: 0.3% of applications led to follow-ups.
  • Legal support: Nonprofit firm Towards Justice and former federal officials.
  • One-third of clients: Fortune 500 companies, including Salesforce.

Concerns Over AI Bias and Transparency

The plaintiffs and their attorneys argue that there should be no exemption for AI technologies from consumer protection laws. They emphasize that decades of regulations have been crucial in safeguarding job applicants against the potential exploitation by third-party organizations.

David J. Walton, an employment attorney not affiliated with the lawsuit, points out the complexities involved when companies utilize AI for hiring. He notes that these tools tend to favor specific applicant profiles, leading to inherent biases in their functionality.

The Path Forward for Job Seekers and AI Technologies

The outcome of this lawsuit may significantly impact how AI screening technologies are regulated in the hiring process. It could also enforce greater transparency in the data usage and scoring mechanisms employed by firms like Eightfold AI.

As the legal battle unfolds, it will be essential for job seekers and employers alike to stay informed about developments regarding AI ethics and application in the workforce.