iTutorGroup Inc, a tutoring firm from China, has come to an agreement with the U. Equal Employment Opportunity Commission (EEOC) in the initial case of bias linked to AI-based hiring software. The EEOC asserted that iTutorGroup deployed AI to unfairly discriminate against older job candidates. This legal action formed part of the EEOC's campaign to ensure that the use of AI by US employers complies with regulations against discrimination.

To settle the matter, iTutorGroup has consented to pay$365,000 to over 200 job seekers who claim to have been overlooked due to their age. Although the company, which delivers English tutoring services in China, refuted any misconduct, the settlement requires the approval of a federal judge.

Why does this matter?

This case marks one of the first instances of a company settling a lawsuit involving bias in AI-driven hiring software and highlights concerns regarding potential biases inherent in AI systems employed for hiring choices, a matter expected to generate more AI-related discrimination lawsuits in the future. As AI becomes more integrated into various aspects of society, addressing bias and ensuring fairness in its applications is crucial to prevent systemic discrimination. This case could set a precedent for future legal actions.