A group of job applicants filed a lawsuit against AI-powered hiring platform Eightfold AI this month, arguing that certain AI-powered résumé screening capabilities and the candidate scoring tools violate consumer protections afforded to job applicants by federal and state laws.

The suit alleges that Eightfold’s AI résumé screening and candidate scoring tools “collect sensitive and often inaccurate information about unsuspecting job applicants and to score them from 0 to 5 for potential employers based on their supposed ‘likelihood of success’ on the job,” similar to the personal and financial files developed and used by credit reporting agencies to score consumers’ creditworthiness and thus should be governed by the Fair Credit Reporting Act and, at least in California where the lawsuit was filed, the California Investigative Consumer Reporting Agencies Act.

“I’ve applied to hundreds of jobs, but it feels like an unseen force is stopping me from being fairly considered,” Erin Kistler, one of the two named plaintiffs in the class action, said in a statement after the suit was filed. “I know I’m not alone in feeling this way.”

The Fair Credit Reporting Act hasn’t been used this way before, according to reporting from the New York Times, but it defines what purposes credit reporting agencies can develop their reports, requires them to disclose information in credit reports used to score to consumers, and requires companies to allow consumers to dispute inaccuracies.

For more on the case against Eightfold AI, keep reading here.—AD

Industries from tech to banking to education are being impacted by the rise of AI. And as companies like Amazon, Salesforce, and Workday invest less in hiring and more in the new technology, new research finds that some economies have been hit harder than others.

Where in the world? Japan, Germany, Australia, and the UK saw jobs decline due to AI over the last year, with the latter being hardest hit, according to a recent report from Morgan Stanley, shared with Bloomberg. Some companies in the UK are cutting back on hiring so they can invest in AI and benefit from its efficiencies. As a result, open roles are being left unfilled, compounding the country’s already suffering job market, Bloomberg reported.

Employers in the UK are already navigating a tricky economy: Overall growth has slowed, and the minimum wage has increased. The unemployment rate is approaching its highest level since 2020, and younger, white-collar workers have seen their job prospects increasingly replaced by AI. Software developers, consultants, and HR professionals are among those experiencing a decline in job opportunities, a Bloomberg analysis found.

Satellite view. The US is the only country that has seen an increase in roles as a result of AI, according to the Morgan Stanley report seen by Bloomberg. However, the unemployment rate of new college graduates is climbing, CNBC reported.

For more on how AI is affecting employment around the world, keep reading here.—KP

Are generational clashes the biggest problem your company isn’t paying attention to? While older folks have had to adapt to a rapidly changing tech space over the last couple of decades, a younger cohort has been born into it.

A study from newly-formed revenue orchestration company Clari + Salesloft is diving into the topic—specifically AI usage—and finding the generational divide comes at a pretty penny. According to the report, companies are on average losing $56 billion in productivity annually due to growing generational divides based on AI usage.

The survey shows that 85% of respondents using AI-enabled tools think the technology is improving their performance, however 64% say they aren’t using the full capabilities available to them—that number jumps to 75% among the baby boomers surveyed.

“Employees in revenue-generating roles should be one of the biggest beneficiaries of AI, but right now it’s becoming a divider instead of a multiplier,” said Clari + Salesloft CEO Steve Cox in a statement. “When AI is implemented intentionally, it aligns how work gets done and raises the floor for everyone, not just the early adopters.”

For more on the generation gap for AI usage, and how much it’s costing companies, keep reading on Revenue Brew.—LI