Adverse Impact Analysis in Applicant Flow: The Challenge of Artificial Intelligence Tools

Artificial intelligence (AI) is reshaping how organizations recruit talent with speed and efficiency at scale. As AI-driven tools become embedded in applicant screening, they also introduce significant compliance and litigation risks. Regulators and courts are increasingly examining whether these systems unintentionally discriminate against protected groups.

Benjamin Shippen examines a recent lawsuit, Mobley v. Workday, and argues that regulators may set a new precedent for how liability is assigned in AI‑assisted hiring. He explains that employers cannot treat AI as a black box because it inserts new decision points into the applicant flow, such as automated qualification screens, video interview scoring, and algorithmic candidate‑ranking. With legal challenges emerging and the US Equal Employment Opportunity Commission (EEOC) intensifying scrutiny, proactive analysis is no longer optional—it is essential for fairness, accuracy, and risk management. Dr. Shippen explains that Mobley v. Workday could redefine accountability by targeting an AI vendor directly rather than the employers who use the system.