China-based tutoring company iTutorGroup settled a lawsuit with the US Equal Employment Opportunity Commission (EEOC) for $365,000 after the EEOC claimed that the company used AI-powered hiring software to discriminate against older job applicants. The settlement, which a federal judge must approve, is the first lawsuit by the EEOC involving a company’s use of AI to make employment decisions. The EEOC has warned that it will focus enforcement efforts on companies that misuse AI, as many worker advocates and policymakers are concerned about the potential for existing biases to be baked into AI software, even unintentionally.
Why do we care?
As the first case involving AI, it set a precedent. With all my interest in AI, part of the opportunity is navigating the effective use of the technology. Part of that is not getting into trouble with the law. Here’s your first precedent.