In short
- Two job candidates have filed a class-action lawsuit towards Eightfold AI for allegedly violating federal and California client safety legal guidelines with secret AI-generated studies.
- The lawsuit alleges that Eightfold pulls knowledge from LinkedIn, GitHub, and job boards to generate “Match Scores” that rank candidates and filter out lower-scored candidates earlier than human overview.
- The submitting says the platform’s AI is educated on greater than 1.5 billion knowledge factors, with out letting candidates overview or appropriate errors.
Two job seekers filed a federal class-action lawsuit Tuesday towards AI hiring platform Eightfold, alleging that the corporate makes use of hidden synthetic intelligence to secretly rating candidates with out their data or consent, thereby violating client safety legal guidelines enacted within the Nineteen Seventies.
The grievance, filed in California’s Contra Costa County Superior Court docket, alleges that Eightfold violated the Honest Credit score Reporting Act and California’s Investigative Client Reporting Businesses Act by assembling client studies on job candidates with out offering required disclosures or dispute rights.
Plaintiffs Erin Kistler and Sruti Bhaumik declare Eightfold’s platform collects delicate private knowledge, together with social media profiles, location knowledge, web exercise, and monitoring cookies, from public sources like LinkedIn, GitHub, and job boards to guage candidates making use of to firms together with Microsoft, PayPal, Starbucks, and Morgan Stanley.
The plaintiffs search precise and statutory damages between $100 and $1,000 per violation beneath federal legislation, plus as much as $10,000 per violation beneath California legislation, together with punitive damages and injunctive reduction requiring Eightfold to vary its practices.
The lawsuit alleges that Eightfold’s AI makes use of “greater than 1.5 billion international knowledge factors” to generate “Match Scores” that rank candidates from 0 to five based mostly on their “chance of success,” with lower-ranked candidates typically “discarded earlier than a human being ever appears at their utility.”
Kistler, a pc science graduate with 19 years of product administration expertise, utilized for senior PayPal roles by way of Eightfold in December with out touchdown an interview, whereas Bhaumik, a mission supervisor with levels from Bryn Mawr and the College of Pittsburgh, was robotically rejected from a Microsoft function two days after making use of.
The lawsuit claims that just about two-thirds of huge firms now use AI know-how like Eightfold’s to display candidates, whereas 38% deploy AI software program to match and rank candidates.
“This case is a couple of dystopian AI-driven market, the place robots working behind the scenes are making selections about a very powerful issues in our lives: whether or not we get a job or housing or healthcare,” David Seligman, Government Director at In the direction of Justice and one of many attorneys representing the plaintiffs, tweeted.
“There isn’t a AI exemption to the legislation—regardless of how fancy-sounding the tech or how a lot enterprise capital is behind it,” he famous.
🧵Yesterday, we filed a first-in-the-nation class motion towards Eightfold AI—an organization most individuals have by no means heard of, however that performs a hidden function in deciding who will get employed at among the largest firms within the nation. /1https://t.co/23kGFUXMyl
— David Seligman (@daveyseligman) January 21, 2026
The grievance alleges that Eightfold’s proprietary Giant Language Mannequin incorporates knowledge on “greater than 1 million job titles, 1 million expertise, and the profiles of greater than 1 billion folks working in each job, career, [and] business,” plus “inferences drawn” to create profiles reflecting candidates’ “preferences, traits, predispositions, conduct, attitudes, intelligence, talents, and aptitudes.”
Through the utility course of, neither plaintiff acquired a standalone disclosure that client studies can be generated, nor did they obtain summaries of their client safety rights or details about Eightfold’s function as a client reporting company, the lawsuit alleges.
Decrypt has reached out to Eightfold for remark and can replace this text ought to they reply.
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