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'Workforce Intelligence' startup Eightfold sparks litigation over AI use for hiring

By Mike Swift ( January 24, 2026, 00:23 GMT | Comment) -- The Consumer Financial Protection Bureau warned in 2024 of the threat of “unchecked digital tracking” by AI systems making employment decisions, saying such practices could violate a 1970s-era federal financial data privacy law. That digital tracking for employment decisions is now a growing business for a Silicon Valley startup called Eightfold AI, according to a lawsuit filed in a California state court this week. The sea change in US federal regulatory philosophy between the Biden and Trump administrations may mean that disputes over the limits of AI's use for employment decisions will play out in US courts rather than through regulatory decisions.A federal regulator warned 15 months ago of the threat of “unchecked digital tracking” by AI systems to make employment decisions, saying such practices could violate a key US financial data privacy law....

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