A recent class action lawsuit has been filed in California state court, aiming to bring clarity to the use of artificial intelligence in hiring processes. This legal action, initiated by two women in STEM fields, challenges the way AI-generated applicant scores are utilized, arguing they should be treated similarly to credit checks under consumer protection laws.
The plaintiffs, including Erin Kistler, contend that AI screening tools have unjustly disqualified them from job opportunities they were qualified for. According to the World Economic Forum, approximately 88% of companies now employ AI for initial candidate evaluations, highlighting the increasing reliance on technology in recruitment.
Central to the lawsuit is the AI firm Eightfold, which provides tools for managing hiring processes and assigns a numerical match score to candidates. This score, derived from various data sources, is claimed to function as a “consumer report” under the Fair Credit Reporting Act. The lawsuit seeks to enforce regulations that would require Eightfold to notify applicants when such reports are created, obtain their consent, and allow them to contest any inaccuracies.