Job applicants have filed a lawsuit after being rejected by an AI-powered hiring system, arguing that the technology should be subject to stricter regulation.
Applying for jobs is already demanding, requiring tailored resumes and cover letters long before interviews begin. Rejections can be frustrating, especially when companies offer little or no feedback. That frustration has grown as more employers rely on AI to screen applications.
According to The New York Times, applicants are suing Eightfold AI, a company whose software scores candidates using various data points. The lawsuit seeks to have such tools regulated similarly to credit reporting systems under the Fair Credit Reporting Act, which would require greater transparency about what data is collected and how decisions are made.
One plaintiff, Erin Kistler, said she believes applicants deserve to know what information is being gathered and shared with employers, especially when AI decisions come with no explanation.
David Seligman of the nonprofit Towards Justice, which is handling the case, added that existing laws still apply to AI and warned that new technologies are too often used in ways that undermine individual rights.
The case is part of a broader wave of legal and regulatory scrutiny around AI, following recent controversies involving AI-generated content and allegations of improper training data use.