Employers seek to share AI bias liability with Vendors

Employers Find Openings to Share AI Bias Liability With Vendors

Developers of artificial intelligence-based hiring tools have avoided discrimination lawsuits over use of the software so far, but that could change in light of new state AI laws and novel theories of vendor liability.

AI vendors could be liable as agents of employers, a federal judge in California found July 12 in allowing a job seeker to pursue some discrimination claims against HR software company Workday. The applicant alleged that automated tools created by Workday unlawfully rejected him from dozens of roles based on his race, age, and disability.

“Workday ...