"The complaint, filed on Jan. 20 against the Santa Clara startup Eightfold AI, which contests the claims, represents a new flashpoint in the use of AI for hiring. Filed by two California workers, the lawsuit alleges that Eightfold's technology "lurks in the background" of many companies' application processes, providing hiring managers with AI-generated reports that score candidates using personal information that they might not have included in their applications."
"The Bay Area's stream of post-pandemic tech layoffs has forced thousands to search for jobs and slog through applications. And now, newly popular artificial intelligence tools are sowing yet more discontent and uncertainty for job seekers. Companies use AI avatars to conduct screening calls. They scrape data from across the internet to hunt for candidates. They use software to scan application materials. And, according to allegations in a new and high-profile Bay Area lawsuit, they violate federal and state privacy laws."
Post-pandemic tech layoffs pushed thousands to reapply while new AI hiring tools add uncertainty. Companies deploy AI avatars for screening, scrape internet data, and scan application materials. A Jan. 20 complaint alleges Eightfold AI provides hiring managers AI-generated candidate reports using personal information not shared in applications. The suit claims violation of the federal Fair Credit Reporting Act and a California analog, arguing applicants must be allowed to authorize and review such reports. Marketing materials indicate the platform pulls public information and evaluates "current and learnable skills." Plaintiffs seek transparency to prevent automated discarding of lower-ranked candidates.
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