Job applicants file lawsuit after AI tool scanned resumes and rejected them

Job applicants who were turned down after being screened by an AI service have filed a lawsuit, asking the court to change how the service is categorized.

Finding a new job can be challenging. You need a polished resume and a compelling cover letter to stand out, and that’s just the first step before interviews and any skills tests.

It’s frustrating to be turned down for a job simply because of your experience, particularly when employers don’t offer helpful feedback to guide your future applications.

With artificial intelligence becoming more common, many companies are now using it to check work for AI-generated content. But recently, people have been upset to find their own work incorrectly flagged as being created by AI.

Eightfold AI sued over job applications tool

According to the New York Times, job seekers are suing Eightfold AI over its applicant scoring tool.

The lawsuit aims to have these tools treated like the Fair Credit Reporting Act, which would require them to disclose the data they collect and how it’s used to evaluate applicants.

Erin Kistler, who is involved in a lawsuit about data collection, said she believes she has the right to know what information is being gathered about her and shared with potential employers. She also stated that she isn’t receiving any feedback, making it impossible for her to correct any problems with the information being shared.

David Seligman, who leads the non-profit Towards Justice in Denver, stated simply: “The law doesn’t make exceptions for artificial intelligence.”

All too frequently, companies introduce new technologies with a lot of hype, but ultimately use them in ways that infringe on people’s rights.

This isn’t the only lawsuit involving AI that’s been filed recently, and it’s not the newest attempt to regulate it either.

A novel created by artificial intelligence lost its awards in Japan after it was discovered it wasn’t eligible for the competition. Meanwhile, NVIDIA is facing claims that it used copyrighted content to develop its AI technology.

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2026-01-26 18:53