The international HR software provider Workday is facing a class action lawsuit in the U.S. over alleged systematic discrimination against job applicants. This is one of the first major legal cases concerning the use of artificial intelligence in recruiting.
What happened?
A Black man over the age of 40, who says he suffers from depression, has filed a lawsuit. Over the past few years, he applied for more than 100 jobs at companies using Workday’s AI recruiting tool – and was rejected every time. A US federal court has now granted class action status, allowing other affected individuals to join the lawsuit.
How does the tool work?
Thousands of companies worldwide use Workday’s AI-powered applicant screening tools. These systems analyze resumes and applicant qualifications using algorithms. Candidates can be automatically rejected or advanced in the hiring process.
What does the EU AI Act say?
Under the EU AI Act, almost all AI applications in HR are classified as high-risk systems and must meet strict requirements. These include: Implementing an ethics policy; Establishing data governance and a risk management system; Bias detection and mitigation measures.
These rules aim to ensure that AI systems in recruiting are fair, transparent, and non-discriminatory