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Tech Journal Now > AI > Workers challenge ‘hidden’ AI hiring tools in class action with major regulatory stakes. – Computerworld
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Workers challenge ‘hidden’ AI hiring tools in class action with major regulatory stakes. – Computerworld

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Last updated: January 23, 2026 1:51 am
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The class action complaint asserts that Eightfold AI violated federal and state fair credit and consumer reporting acts and unfair competition laws by collecting data on applicants and selling reports to companies for use in employment decision-making. These practices “can have profound consequences” for job-seekers across the US, the lawsuit claims.

Eightfold markets itself as the “world’s largest, self-refreshing source of talent data” and incorporates more than 1.5 billion global data points, including job titles and worker profiles across “every job, profession, [and] industry.” It counts among its customers corporate giants including Microsoft, Morgan Stanley, Starbucks, BNY, Paypal, Chevron, and Bayer. 

The suit claims the Santa Clara-based company’s proprietary large language model (LLM) and deep learning-based technology analyze data from public resources including career sites, job boards, and resumé databases such as LinkedIn and Crunchbase. It also culls information from social media profiles, applicant locations, and behind-the-scenes tracking tools. None of these personal data points are ever included in job applications.

Read the full article here

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