A growing wave of US lawsuits is challenging the use of artificial intelligence in hiring and firing decisions, with critics arguing the technology enables discrimination while operating without transparency or accountability. Product manager Erin Kistler is leading a class action against Eightfold AI, a hiring software maker used by hundreds of companies including PayPal, Microsoft and Netflix, after applying to thousands of roles over four years without ever landing an interview. Her lawyers argue that automated screening effectively creates undisclosed applicant dossiers that rank candidates without allowing them to see or contest the results, and separate cases against Meta and IBM allege AI systems were used to target workers for layoffs or discriminate against older employees.

The scale of AI adoption in recruitment is significant: a World Economic Forum report found 90% of employers used some form of hiring automation last year, ranging from basic degree-requirement filters to AI-driven skills assessments and even initial phone interviews. Eightfold, which describes itself as holding data on over a billion workers drawn from résumés, LinkedIn and social media profiles, scores applicants from 0 to 5 to predict job performance, a rating that can determine who gets interviewed. Legal experts, including Emory University's Ifeoma Ajunwa, note that no US law currently requires employers to disclose when AI is used to evaluate candidates, and lawyers such as Rachel Dempsey argue job seekers deserve the same transparency rights over these assessments that already apply to credit reports.