Where automated decisions went wrong

These workers say an AI hiring platform discriminated against them. But who should pay?

The system screened out Black and other applicants, denying them job opportunities.

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AI weeds out older and minority job applicants, lawsuit against Workday claims

Job applicants were automatically screened out by AI, allegedly discriminating against older, minority, and disabled applicants.

Company involved

Workday

AI system involved

Workday AI recruiting tools

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Job seeker asks First Circuit to revive class action over AI interviewing tool

Massachusetts financial consultant Mozart Saint Cyr leads a proposed class of job applicants who say JPMorgan Chase's use of HireVue one-way video interviews amounted to a lie detector test banned by state law. After a federal judge dismissed the case, they asked the First Circuit to revive it.

Company involved

JPMorgan Chase

AI system involved

HireVue one-way video interview

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CVS settles lawsuit alleging it used AI 'lie detector' in interviews

CVS reached a tentative settlement of a proposed class action by a Massachusetts job applicant who said his 2021 HireVue video interview was analysed with Affectiva's AI to track facial expressions without notice, amounting to a lie detector test banned by state law. He could not opt out or challenge the assessment, and was not hired.

Company involved

CVS Health

AI system involved

HireVue video interview with Affectiva analysis

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AI Hiring Platform Faces FCRA Class Action Over Data Use | Kistler et al. v. Eightfold AI Inc.

The AI platform screened job applicants, affecting their hiring prospects.

Company involved

Eightfold AI

AI system involved

Eightfold AI

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AI rejected a job candidate — and no one explained why. A look at how it works

ИИ отказал кандидату в работе — и никто не объяснил почему. Разбираем, как это устроено - Sostav.ru

In 2026, AI-driven recruitment systems often automatically reject candidates without human review. Algorithms scan resumes, rank applicants, and send template rejections to those who don't score high enough, while recruiters typically only see the top-ranked profiles. The criteria used by these systems are often opaque, and many managers cannot explain the logic behind the AI's decisions.

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AI Lawsuit Pushes the Boundaries of AI Litigation—and May Signal a New Wave

Ranked job applicants' likelihood of success, affecting their hiring prospects.

Company involved

Eightfold AI Inc.

AI system involved

Eightfold AI Hiring Platform

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Resume prompt injection tricks AI hiring - moneywise.com

AI screening system determined which job applicants to advance to the next stage of recruitment.

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HireVue, Facing FTC Complaint From EPIC, Halts Use of Facial Recognition

Scored job candidates based on facial analysis and other biometric data, affecting their hiring prospects.

Company involved

HireVue

AI system involved

HireVue

1 source article · read the reporting →

Federal Judge Questions Workday's Liability Under California Discrimination Law

連邦判事がWorkdayにカリフォルニア差別法の適用を問う - Межа. Новини України.

A San Francisco federal judge expressed skepticism over Workday's claim that California's anti-discrimination law does not apply when its AI screening software is used by out-of-state employers. The case could set a precedent for algorithmic hiring liability.

Company involved

Workday

AI system involved

Workday

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US Federal Court Rejects Workday's Arguments, Allows AI Hiring Lawsuit to Proceed

米連邦地裁がWorkdayの主張を退け、AI採用訴訟の継続を認める - Межа. Новини України.

A federal court in San Francisco declined Workday's request to dismiss a lawsuit alleging its AI-powered hiring software discriminates against applicants with disabilities and other protected groups. Judge Rita Lin ruled that California anti-discrimination law may apply and allowed claims that the software screens candidates using proxy indicators such as employment gaps to move forward. Workday maintains its tools evaluate only qualifications and do not make hiring decisions.

Company involved

Workday

AI system involved

Workday

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South Africa's Supreme Court of Appeal Considers Sassa Algorithm Case

Верховный апелляционный суд ЮАР рассмотрел дело об алгоритмах Sassa - UA.NEWS

The Supreme Court of Appeal heard an appeal on 25 August about Sassa's digital application system for the SRD grant. The system only accepts online applications and uses automated bank account checks that may deny grants to people whose accounts receive deposits that are not regular income. The Global Center on AI Governance submitted that automated decisions must uphold constitutional rights and be fair, non-discriminatory, and suited to South Africa's informal economy.

Company involved

South African Social Security Agency (Sassa)

AI system involved

Sassa digital application system

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SEC Charges Delphia and Global Predictions for False AI Claims

The SEC charged Delphia (USA) Inc. and Global Predictions Inc. for making false and misleading statements about their use of artificial intelligence. Delphia claimed from 2019 to 2023 that it used AI and machine learning to predict investments, while Global Predictions falsely claimed in 2023 to be the 'first regulated AI financial advisor'. Both firms settled the charges without admitting or denying the findings, agreeing to pay a total of $400,000 in civil penalties and to cease and desist from further violations.

Company involved

Delphia (USA) Inc. and Global Predictions Inc.

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CFPB Acts Against Hello Digit for Faulty Savings Algorithm Causing Overdrafts

Hello Digit, a fintech company, used an automated savings algorithm that made transfers from consumers' checking accounts, falsely guaranteeing no overdrafts. The algorithm caused customers to incur overdraft fees, and the company often denied reimbursement requests. The CFPB found that Hello Digit engaged in deceptive practices and ordered the company to pay redress to harmed consumers and a $2.7 million fine.

Company involved

Hello Digit, LLC

AI system involved

Hello Digit app

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Schufa's Black-Box Scoring Unfairly Penalises Consumers with Positive Credit Data

An investigation by SPIEGEL and BR Data reveals that Schufa's credit scoring algorithm often assigns poor risk scores to consumers with only positive credit information. One consumer, Sven Drewert, was denied a credit card limit increase despite having no negative entries. The algorithm uses limited data, and its secret formula can lead to arbitrary categorisations, affecting access to loans, phone contracts, and housing. The system's opacity and potential biases raise concerns about fairness and accountability.

Company involved

Schufa Holding AG

AI system involved

Schufa Score

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Durham Police uses Experian Mosaic data in HART AI risk tool

Durham Constabulary developed the Harm Assessment Risk Tool (HART), a machine learning algorithm that assesses the recidivism risk of offenders. The tool uses 34 data categories including criminal history, age, gender and two types of postcode, one sourced from Experian's Mosaic marketing segmentation system. Big Brother Watch alleges that using such commercial consumer behaviour data to inform custody decisions risks prejudice and disproportionate targeting of deprived neighbourhoods. The force has stated it is refreshing the model with an aim to remove one of the postcode predictors.

Company involved

Durham Constabulary

AI system involved

Harm Assessment Risk Tool (HART)

9 source articles · read the reporting →

UK government using AI for benefits and immigration decisions

The UK government is reportedly using artificial intelligence to make decisions on welfare benefits and immigration applications. The system automates decisions previously made by human caseworkers. Concerns have been raised about the fairness and transparency of such automated decisions.

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Predictim AI babysitter screening raises accuracy and bias concerns

Jessie Battaglia used Predictim, an online service that claims to use AI to assess babysitters' risk of drug abuse, bullying, or bad attitude. The service analyzes social media profiles and other online data. Experts have raised concerns about the accuracy and potential bias of the AI assessments. Predictim's CEO defended the service, saying it provides additional information for parents.

Company involved

Predictim

AI system involved

Predictim

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FinTech and traditional lenders discriminate against minority borrowers in mortgage pricing

A study of mortgage lending from 2012-2018 found that Latinx and African-American borrowers were charged higher interest rates than white borrowers with similar credit risk. FinTech algorithms reduced the disparity by 40% but did not eliminate it. The discrimination costs minority borrowers an estimated $765 million per year in extra interest.

10 source articles · read the reporting →

Austrian court lifts ban on AMS job-chance prediction algorithm

The Austrian Federal Administrative Court overturned a ban by the Data Protection Authority on the AMS algorithm, which predicts job chances of unemployed people. The system, trained on historical data including age, gender, and nationality, categorises individuals as high, medium or low chance of re-employment. Critics argue it discriminates against women and mothers, and that the data is now outdated due to the COVID-19 pandemic. The court ruled that the algorithm is lawful as long as a human advisor makes the final decision on training support.

Company involved

Arbeitsmarktservice (AMS)

AI system involved

AMS-Algorithmus

5 source articles · read the reporting →

Finnish recruitment company Digital Minds used AI to analyze job applicants' messages, prompting data protection investigation

Digital Minds, a Finnish recruitment company founded by psychologists, used IBM Watson AI to analyze job applicants' social media and email messages for personality assessments. The company obtained written consent but the Finnish Data Protection Ombudsman launched an investigation, suspecting violations of data protection laws and the secrecy of correspondence. The service was used on fewer than ten applicants and has been paused pending the investigation.

Company involved

Digital Minds

AI system involved

IBM Watson

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DeepScore markets facial and voice analysis app for trustworthiness scoring despite experts' doubts

DeepScore, a Tokyo-based company, is marketing an app that uses facial and voice recognition to score people's trustworthiness for lenders and insurers in Japan, Indonesia, Vietnam and the Philippines. The company says the app can detect deception with 70 per cent accuracy, but researchers and privacy advocates say there is no reliable scientific basis for such judgments and warn of discrimination and privacy harms. The chief executive said the system is only one part of lenders' and insurers' decision-making and that people can choose not to use it. Critics respond that an unequal balance of power makes consent difficult.

Company involved

DeepScore

AI system involved

DeepScore

6 source articles · read the reporting →

Retorio AI personality test swayed by candidate appearance in BR experiment

Bayerischer Rundfunk journalists conducted experiments with Retorio's AI video interview analysis tool. The AI, which assesses personality traits from short videos, produced different scores when the same actress changed her appearance (glasses, headscarf, wig) or the video background and lighting were altered. The start-up Retorio acknowledged that the AI considers external image, similar to a human interviewer. Experts warned that such software could perpetuate stereotypes and unfairly affect job candidates.

AI system involved

Retorio AI

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Study finds credit score algorithms less accurate for minorities

A study of 50 million US consumers found that credit scoring algorithms used by mortgage lenders are less accurate for minority and low-income applicants due to sparse credit data, leading to higher rejection rates. The inaccuracy is due to noise in the data, not bias, so fairer algorithms cannot fix it. The study suggests that adjusting for bias had no effect, and that addressing the inaccuracy could reduce disparities by 50%.

Company involved

Mortgage lenders (unnamed)

AI system involved

Credit scoring algorithms

6 source articles · read the reporting →