Job seekers are suing an AI hiring tool used by Microsoft and Paypal for allegedly compiling secretive reports that help employers screen candidates | Fortune
Job seekers are suing Eightfold, an AI hiring tool used by companies like Microsoft and PayPal, alleging secretive data collection and inaccurate candidate screening.Summary
A class-action lawsuit has been filed against Eightfold, an AI hiring tool utilized by major companies such as Microsoft and PayPal, claiming the tool violates the Fair Credit Reporting Act and California consumer protection laws. Plaintiffs allege Eightfold compiles secretive reports on candidates using data collected from sources like social media and internet activity without providing applicants access to this information or the ability to correct inaccuracies. Eightfold denies these claims, stating it only uses data intentionally shared by candidates or provided by customers.
The lawsuit centers on Eightfold’s AI-driven scoring system, which ranks candidates based on their fit for a given job. Experts note a growing trend of companies using AI tools in hiring, often outpacing the development of necessary compliance and governance structures, leading to potential inaccuracies and discrimination. While some states and cities have begun regulating these tools, transparency remains a significant issue.
If successful, the lawsuit could compel AI hiring tools to be more transparent about their data collection practices and ensure greater accuracy. However, legal scholars suggest the existing 55-year-old law may not fully address the complexities of modern AI usage, and even a favorable ruling might only provide limited transparency.
(Source：Fortune)