Artificial Intelligence Employment Discrimination Lawsuit Proceeds

In Mobley v. Workday, Inc., Case No. 23-CV-770 (N.D. Cal. July 12, 2024) (ECF No. 80), Judge Rita F. Lin of the U.S. District Court for the Northern District of California granted in part and denied in part Workday’s Motion to Dismiss Plaintiff’s Amended Complaint concerning allegations that Workday’s algorithm-based screening tools discriminated against applicants on the basis of race, age, and disability. This litigation has been closely watched for its novel case theory based on artificial intelligence use in making personnel decisions. For employers utilizing artificial intelligence in their hiring practices, tracking the developments in this cutting-edge case is paramount.  This ruling illustrates that employment screening vendors who utilize AI software may potentially be liable for discrimination claims as agents of employers.

Read the full post on the Duane Morris Class Action Defense Blog.

Suit Involving Artificial Intelligence-Powered Hiring Tools Heads to Discovery

A closely watched discrimination lawsuit over software provider Workday’s artificial intelligence-powered hiring tools is headed into discovery after a California federal court ruled the company may be subject to federal antidiscrimination laws if its products make decisions on candidates. […]

Alex W. Karasik, a management-side attorney who is a partner at Duane Morris LLP and a member of the firm’s workplace class action group, said companies using or selling workplace-related AI tools need to track the Workday proceedings closely.

“This is definitely a case to watch, as it’s a landmark case involving the use of artificial intelligence and the hiring process,” he said. “Both employers and technology vendors, particularly those involved with artificial intelligence or algorithmic decision-making tools, absolutely need to pay attention to this case.”

He said [the] decision sets out critical guidelines for courts’ evaluations of who may be on the hook when a vendor of AI-based hiring tools faces allegations that its product churns out biased results. […]

Read the full article on the Law360 website (subscription may be required).

The Age of Artificial Intelligence and Commercial Transactions

The pervasiveness of artificial intelligence (AI) is transforming the commercial transactions landscape. Providers across industries are looking to utilize third-party AI tools, or utilize customer data to train AI models, in connection with providing services or implementing use cases proposed by their customers to create efficiencies and cost savings. The intellectual property (IP) stakes are heightened, and parties on either side of a transaction will need to carefully leverage agreements to maintain IP rights in their own data, secure IP rights in resulting products, and protect themselves against claims of infringement.

Read the full Landslide article by Duane Morris’ Ariel Seidner.  (ABA membership required.)

The Use of Artificial Intelligence Tools Before Pennsylvania Courts

By now, litigators appreciate that a degree of technological expertise is needed to practice law effectively. Everyone has heard about the unfortunate attorney in Texas who appeared at a Zoom hearing as a worried kitten. But in the past year, attorneys have become more attuned to the potential and risks of artificial intelligence (AI). Last June, lawyers in New York made headlines after relying on a chatbot’s research skills, leading to sanctions for unknowingly submitting fictitious caselaw. One journalist even found himself in a love triangle with a chatbot bent on ending his marriage. In spite of these cautionary tales, the use of AI in the legal profession is on the rise as trusted legal research services like LexisNexis and Westlaw roll out AI-assisted research functions and major tech companies integrate AI into their products.

Read The Legal Intelligencer article by Rachel Good on the Duane Morris website.

How AI Tools Can Affect E-Discovery

Artificial intelligence use cases are expanding at a rapid rate, and the pressure is mounting for businesses to leverage that technology or risk being left behind by their competitors. In addition to open-source applications, businesses are using enterprise-specific tools that enable employees to use generative AI technology at work. This includes licensed versions of the open-source models or business-specific tools developed alongside the applications the business is already using.

Read the article by Sarah O’Laughlin Kulik on the Duane Morris website.

Employment Discrimination and Artificial Intelligence

Artificial intelligence took the employment world by storm in 2023, quickly becoming one of the most talked about and debated subjects among corporate counsel across the country. Companies will continue to use AI as a resource to enhance decision-making processes for the foreseeable future as these technologies evolve and take shape in a myriad of employment functions. As these processes are fine-tuned, those who seek to harness the power of AI must be aware of the risks associated with its use. This featured article analyzes two novel AI lawsuits and highlights recent governmental guidance related to AI use. As the impact of AI is still developing, companies should recognize the types of claims apt to be brought for use of AI screening tools in the employment context and the implications of possible discriminatory conduct stemming from these tools. Read the full featured article here.

Artificial Intelligence Updates – 04.23.24

#HelloWorld. In this issue, we zoom in on the world of AI model training, looking at both dataset transparency and valuation news. Then we zoom out, highlighting Stanford’s helpful summary of 2023 AI regulations and hot-off-the-press ethical guidance on AI use for lawyers from the New York State Bar. It may be a grab bag, but it’s one worth grabbing. Let’s stay smart together.

Read more on The Artificial Intelligence Blog.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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