December 23, 2024

FTC Complaint Filed Regarding AI-powered Hiring Tools

The American Civil Liberties Union (ACLU) filed a complaint with the Federal Trade Commission (FTC) on May 30, 2024, claiming that three hiring tools developed by Aon Consulting target certain racial backgrounds and unlawfully discriminate against individuals with disabilities. The ACLU claims that the developer’s marketing of the tools as fair, bias-free, and without adverse impact misleads the consumer and amounts to deceptive marketing tactics.

The three tools use artificial intelligence (AI) to perform assessments and screening:

  • ADEPT-15 assesses an applicant’s work styles, the way the applicant performs tasks, and how the applicant adapts to change. The ACLU claims that the tool assesses general personality traits that are not job-related or necessary for a specific job. In doing so, the tool screens out applicants with mental disabilities.
  • vidAssess is a video interview tool that identifies positive and negative responses to selected questions. The ACLU complaint alleges flaws similar to those identified in ADEPT-15, resulting in alleged discrimination against individuals with disabilities.
  • gridChallenge is a gamified cognitive assessment tool that tests how well an applicant can process information under stress or when exposed to distractions. The ACLU points to data showing that the tool has a disparate impact on Asian, Black, and Latino applicants. 

The complaint requests that the FTC investigate whether the developer is engaging in unfair and deceptive practices. It also requests that the agency stop the developer from selling or administering the assessments until the investigation is complete.

The FTC has yet to respond regarding the steps it will take to address the complaint. The FTC complaint is the second federal agency complaint pending regarding the use of ADEPT-15 and gridChallenge. A charge has been filed with the Equal Employment Opportunity Commission alleging that a biracial job applicant with autism who was required to take these assessments was discriminated against in violation of Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act.

The agency complaints remind employers of their responsibility to evaluate AI-powered processes and tools independently and not solely rely on vendors’ assurances that the tools are non-discriminatory. The EEOC and the National Institute for Standards and Technology are among the federal agencies that have issued guidance for employers in choosing and implementing AI in the workplace:

https://www.eeoc.gov/newsroom/eeoc-releases-new-resource-artificial-intelligence-and-title-vii

https://www.nist.gov/artificial-intelligence/ai-standards-federal-engagement