A proposed class-action lawsuit alleges that Eightfold AI, a company whose artificial intelligence tools are used by major employers like Microsoft, Salesforce, and PayPal to screen job applicants, has been misusing applicants’ personal and credit-related information without transparency or recourse. According to the complaint, Eightfold’s AI generates predictive evaluations about candidates — such as inferred background data — but does not notify applicants that these reports exist, allow them to see what’s in the reports, or give them a way to dispute errors, as required under the Fair Credit Reporting Act (FCRA) and similar California consumer laws. The plaintiffs say errors in these hidden evaluations may have unfairly hurt their chances of getting hired. Eightfold denies scraping social media and says it complies with applicable laws, but the case could have broader implications for transparency and legal compliance in AI-driven hiring tools.
In academic partnership with Virscend University, a WASC-accredited institution in Irvine, California.