Eightfold AI sued for job candidate reports without their consent (www.hrdive.com)

Eightfold AI Inc. is facing a proposed class-action lawsuit from job applicants, alleging that the company used artificial intelligence to generate candidate reports without their knowledge or consent. The lawsuit claims that Eightfold AI's software gathered personal data from unverified third-party sources—such as social media and internet activity—assessing candidates' "likelihood of success" through a proprietary large learning model. Plaintiffs contend this practice resulted in unfair job screenings and violated consumer protection laws set out in the Fair Credit Reporting Act, which mandates transparency and the right to dispute evaluations. This case is significant for the AI/ML community as it raises critical questions about the ethical use of AI in recruitment processes. As more companies adopt AI tools to streamline hiring (with a reported 93% of talent acquisition professionals planning to increase their AI usage by 2026), compliance with existing legal frameworks becomes essential. The implications of this lawsuit could lead to stricter regulations governing how AI technology is employed in hiring practices, emphasizing the importance of safeguarding candidates' rights and ensuring transparency in AI-driven evaluations.