Eightfold AI, a Silicon Valley-based artificial intelligence recruitment platform backed by SoftBank Vision Fund and General Catalyst, is facing a proposed class-action lawsuit in the United States over allegations that it secretly evaluates job candidates without their knowledge, potentially violating federal consumer protection laws.
The lawsuit, filed on January 21 in California, was brought by job seekers Erin Kistler and Sruti Bhaumik. The plaintiffs allege that Eightfold compiles detailed “talent profiles” of candidates, including personality assessments and “fit scores,” which they argue function as consumer reports under the Fair Credit Reporting Act (FCRA).
According to the complaint, Eightfold allegedly fails to notify candidates that such profiles are being created or provide them access to review and dispute the information. Under the FCRA, companies that furnish consumer reports for employment purposes are required to inform individuals and allow them to challenge inaccuracies that could affect hiring outcomes.
Citing a Reuters report, the plaintiffs claim that Eightfold’s assessments influence recruitment decisions at major employers, effectively placing the company in the role of a consumer reporting agency—without complying with the regulatory obligations that accompany that designation.
Eightfold was co-founded in 2016 by Ashutosh Garg and Varun Kacholia, both alumni of the Indian Institute of Technology. Garg, the company’s chief executive officer, previously held research roles at Google and IBM, while Kacholia, its chief technology officer, served as an engineering director for Facebook’s News Feed.
The company has a significant presence in India, with its Noida-based Global Centre of Excellence playing a key role in product development and operations. Eightfold’s Indian partnerships include a collaboration with Tata Consultancy Services in 2021 and Wipro in 2024.
Eightfold counts several Fortune 500 companies among its customers, including Microsoft and PayPal, and promotes its platform as a tool that helps employers automate hiring by analysing large volumes of resume and job-market data to predict candidate suitability.
Responding to the allegations, an Eightfold spokesperson denied any covert practices. “We do not scrape social media and the like. We are deeply committed to responsible AI, transparency, and compliance with applicable data protection and employment laws,” spokesperson Kurt Foeller said, according to Reuters. He added that the platform relies on data voluntarily shared by candidates or provided by client companies.
The lawsuit comes amid growing regulatory and public scrutiny of AI-driven decision-making systems, particularly in sensitive areas such as hiring, lending and housing, where concerns around algorithmic bias and opaque scoring models have intensified.
Eightfold has not yet filed a formal response to the lawsuit in court.
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