Workers Take on ‘Invisible’ AI Hiring Tools in Landmark Class Action with Significant Regulatory Implications.

A class action lawsuit has been filed against Eightfold AI, alleging violations of federal and state fair credit and consumer reporting laws, as well as unfair competition practices. The complaint asserts that the company collects applicant data and sells reports to businesses, impacting job-seekers nationwide. Marketed as the “world’s largest, self-refreshing source of talent data,” Eightfold boasts over 1.5 billion data points covering various job titles and professionals. With clients like Microsoft, Morgan Stanley, and Starbucks, the lawsuit highlights concerns about Eightfold’s proprietary technology, including its large language model (LLM) and deep learning systems, which analyze data from multiple sources like job boards, social media, and résumé databases. Notably, personal data points are not included in job applications, raising ethical questions about data usage in employment decisions. This case underscores the critical importance of transparency and fairness in recruitment technologies.

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