A China-based coaching company has agreed to settle a US government new lawsuit against the agency that claims it used hiring software powered by artificial intelligence to illegally fire older job applicants.
The 2022 case against iTutorGroup Inc is the first by the US Equal Employment Opportunity Commission (EEOC) involving a company’s use of AI to make employment decisions.
The commission, that enforces workplace bias laws, in 2021 launched an initiative to ensure that AI software used by US employers complies with anti-discrimination laws. The EEOC has warned that it will focus its enforcement efforts on companies that abuse AI.
TutorGroup agreed to pay $365,000 to more than 200 job applicants who were allegedly passed over because of their age, according to a joint filing filed in New York federal court on Wednesday. The settlement must be approved by a federal judge.
The company, which provides English-language instruction to students in China, has denied wrongdoing in the settlement.
The EEOC alleges that iTutorGroup in 2020 programmed its online recruitment software to target women age 55 or older and men age 60 or older.
ITutorGroup, a unit of Ping An Insurance Group Co of China 601318.SS, did not immediately respond to a request for comment. An EEOC SPOKESMAN said the agency would not comment until the settlement is approved.
At least 85% of large US employers are using AI in some aspect of employment, according to recent surveys.
That includes software that screens job applicants before a human reviews any applications, human “chatbots,” and programs that conduct performance reviews and make recommendations for promotions.
Many advocates and advocates of workers WORRIED about the potential for existing biases to be baked into AI software, even unintentionally.
In a pending proposed class action in California federal court, Working day is charged with designing the hiring software used by many large companies that screen out Black, disabled and older applicants. Labor Day denies wrongdoing.
Experts expect a growing number of lawsuits accusing employers of discrimination through their use of AI software.
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Cases in InsurTech Data Driven by Artificial Intelligence
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