
A 20-year veteran product manager applies for a job. Gets rejected in hours — before any human ever saw her resume.
That's what happened to Erin Kistler when she applied through a platform powered by Eightfold AI. A hidden algorithm scored her behind the scenes using data she never submitted, then filtered her out automatically.
She never got to tell her story. Never got to make her case. Never even knew the score existed.
In January 2026, she and another applicant filed a class-action lawsuit. Their argument is straightforward: if an AI system is building secret profiles on people and deciding who gets hired, it should follow the same rules as a background check company.
The enterprises using that tool? Microsoft. PayPal. Morgan Stanley. Starbucks.
This is why our team has been so focused on what we call "deep engineering" versus the quick-and-easy approach most AI vendors take. There's a real difference between an AI system that can explain exactly why it made a decision — step by step, with receipts — and one that just spits out a number between 0 and 5 with no explanation.
The first kind can survive a courtroom. The second kind is what's in trouble right now.
We wrote a detailed breakdown of what went wrong architecturally, what the new 2026 state laws actually require, and how companies can build AI hiring tools that are both powerful and transparent.
Here's what we keep asking ourselves, and we'd genuinely love your take:
If an AI rejects you for a job, should you have the right to see exactly what data it used and why?
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