Description: Two California job applicants reportedly filed a proposed class action alleging that Eightfold AI's hiring platform secretly gathered personal data, generated candidate reports, and scored applicants for employers without required notice or dispute rights. The complaint says Eightfold's Evaluation Tools ranked applications submitted to companies including PayPal and Microsoft; both named plaintiffs alleged they were evaluated and rejected or not advanced.
Editor Notes: Timeline notes: The incident ID date is 01/20/2026, based on the filing of the public class-action complaint in Kistler et al. v. Eightfold AI Inc. The complaint alleges earlier applicant-evaluation episodes, including applications in July and December 2025, but describes the underlying conduct as an ongoing practice rather than a single fully dated event. The incident ID was created on 07/08/2026. See also: https://www.classaction.org/media/kistler-et-al-v-eightfold-ai-inc-complaint.pdf.
Entities
View all entitiesAlleged: Eightfold AI and Algorithmic employment screening system developers developed an AI system deployed by Eightfold AI , PayPal , Microsoft and Employers using algorithmic employment screening systems, which harmed Job applicants , Erin Kistler and Sruti Bhaumik.
Alleged implicated AI systems: Eightfold Talent Intelligence Platform , Eightfold Evaluation Tools , Eightfold Match Score , Candidate ranking systems and Algorithmic employment screening systems
Incident Stats
Incident ID
1575
Report Count
1
Incident Date
2026-01-20
Editors
Daniel Atherton
Incident Reports
Reports Timeline
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Jan 21 (Reuters) - Eightfold AI, a venture capital-backed artificial intelligence hiring platform used by Microsoft, PayPal and many other Fortune 500 companies, is being sued in California for allegedly compiling reports used to screen job…
Variants
A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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