Workday, the human resources software company, is facing a collective action lawsuit alleging discrimination in its job screening technology, raising new concerns about the usage of artificial intelligence.

The lawsuit claims the company's algorithms and AI tools systematically rejected older job applicants. It could potentially set a precedent for how companies can use certain types of automated hiring systems.

Derek Mobley initiated the lawsuit against Workday in 2023, claiming the tech firm's software caused him to be rejected from more than 100 jobs on the platform over seven years.

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The rejections, he claims, are because of his age, race and disabilities.

Four additional plaintiffs — all over the age of 40 — have since joined the lawsuit with age discrimination allegations.

Together, the group claims they submitted hundreds of job applications through Workday and were rejected each time, sometimes within minutes or hours.

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The case comes as companies have been increasingly adopting AI technology for hiring processes.

Workday has denied the allegations in a statement provided to multiple outlets. “We continue to believe this case is without merit,” the company said.

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