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Tuesday, March 10, 2026

When Artificial Intelligence Discriminates: Employer Compliance in the Rise of AI Hiring (US) - The National Law Review

Job applicants often worry about what sorts of things may prevent them from obtaining a position. Although applicants may understand that a lack of qualifications or experience can work against them, they might not be as aware that recruitment and hiring tools used by employers may be working against them as well. The processes employers use to narrow applicant pools and ultimately select candidates are becoming increasingly automated; indeed, the World Economic Forum reported in 2025 that approximately 88% of companies are already utilizing some form of artificial intelligence (AI) in candidate screening.

AI can be an incredibly useful tool for employers to streamline and customize hiring processes, but its use is not without risks. Consider an online platform that matches an employer’s job posting with an applicant’s credentials and prioritizes candidates for the employer’s review based on an algorithmic assessment of how strong the match is, or a machine learning mechanism that observes existing hiring practices and adjusts its recommendations to be best suited to the employer. Although these sound like convenient and logical ways to sift through a candidate pool and identify potential employees that will best meet the needs of the position to be filled, they are exactly the tools at issue in Mobley v. Workday, Inc., a lawsuit filed in a California federal court in 2023 alleging that these AI-based hiring systems unlawfully discriminate against job applicants.

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