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AI hiring tools can be biased, new study finds

Marketplace, May 2026

About 90% of companies are now using AI in the hiring process, according to the World Economic Forum. A new study from the Stanford Institute for Human-Centered AI finds that one AI hiring tool used by lots of companies is often biased against Black and Asian applicants. Anyone who’s been job searching knows it’s rough out there. Companies aren’t posting many jobs, and when they do, they get tons of applications. “They almost have to use an algorithm in some way to be able to look through the number of applications that are coming in,” said Sarah Bana, an assistant professor at Chapman University and one of the co-authors on the Stanford study.

The AI tool that she and her study co-authors looked at is from a company called Pymetrics; Marketplace was unable to reach them for comment by publication time. The tool screens applicants by having them play behavioral video games. She said the company behind it actively tries to eliminate bias, “but what we find is they still end up with racial bias in the algorithm.”

Continue reading at Marketplace.

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