Not All AI Is Created Equal: What the Workday Lawsuit Means for the Future of Hiring
By InnoSource AI Team
The recent federal court ruling in Mobley v. Workday has sent shockwaves through the HR and talent acquisition industry. For the first time, a judge has certified a nationwide collective action alleging that an AI-based hiring tool — in this case, HiredScore, integrated into Workday’s platform — is alleged that it may have discriminated against job applicants aged 40 and over. The implications are enormous.
The Risk of General-Purpose AI in Hiring
At the heart of the lawsuit is a common issue: companies deploying AI systems they don’t fully control or understand. In this case, plaintiffs allege that the algorithms used to sort, screen, and rank candidates introduced systematic age bias. The court found enough merit to allow potentially millions of applicants to be notified and join the action — making this one of the most significant AI-related employment discrimination cases in U.S. history. This isn’t just a Workday issue. It’s a wake-up call for every employer using general-purpose, black-box AI tools in hiring.
Why InnoSource Took a Different Path
At InnoSource, we’ve always believed that AI must serve people — not replace them — and that compliance and transparency must be built in, not bolted on. That’s why we built our AI hiring solutions from the ground up for our own recruiters, clients, and processes. Our system is not a mass-market product. It’s a purpose-built, domain-specific platform designed for real-world use in contact centers, manufacturing environments, and service-oriented roles — and it’s been in production for over a year. Our approach includes:
- Auditable Algorithms — We can show exactly why one candidate was advanced over another.
- Human-AI Partnership — AI never makes final hiring decisions. Our recruiters and hiring managers do.
- Bias Monitoring — Our models are tested continuously for disparate impact across age, race, and gender.
- Domain Focus — We don’t try to be everything to everyone. Our AI is tailored to the types of jobs we know best.
Compliance Isn’t Optional. It’s Strategic.
The headlines about Workday should serve as more than just industry gossip — they’re a clear warning. Legal exposure, brand damage, and broken candidate trust are real consequences of relying on systems that lack transparency. If your team can’t explain how your AI works, you shouldn’t be using it. InnoSource clients benefit from peace of mind, knowing that our platform is:
- Built for EEOC compliance.
- Designed to be explainable to clients, and candidates.
- Used by people who understand hiring — not just code.
The Road Ahead: AI Is Here to Stay — But It Must Be Ethical
We believe in the power of AI. It’s already helping us reduce time-to-hire, improve job fit, and enhance the candidate experience. But AI doesn’t eliminate responsibility — it demands more of it. If you’re currently using a general-purpose hiring AI tool — or if you don’t know how your system works — now is the time to re-evaluate. Your risk isn’t hypothetical anymore.
At InnoSource, we’re not just responding to the future — we’re helping build it.
Let’s talk about how transparent, purpose-built AI can help your hiring team work faster, smarter, and safer. Contact us to schedule a demo or consultation.