Research by: Prabal Mahanta, Manish Kumar, & Sandeep Puri
WINNER OF THE 2024 FOX INTERNATIONAL CASE WRITING COMPETITION
Abstract
In February 2023, Derek Mobley filed a lawsuit against Workday Inc. (Workday), claiming the company’s artificial intelligence (AI) hiring tools discriminated against Black candidates. Mobley alleged that Workday’s screening tools frequently rejected his job applications, often within an hour of his applying. The lawsuit accused Workday of violating civil rights laws and aiding discrimination under California’s Fair Employment and Housing Act. The case gained attention when the Equal Employment Opportunity Commission supported Mobley with an amicus brief, raising concerns that AI tools might perpetuate workplace discrimination, even at companies known for ethical practices. While AI was increasingly being incorporated in hiring practices, legal challenges were rare, partly because candidates were often unaware of algorithmic evaluations and such lawsuits were complex. How could AI hiring tools be adjusted to balance efficiency with fairness and prevent the reinforcement of existing biases or creation of new forms of discrimination? This case study can be used in human resource (HR) management and organizational behaviour courses in a Master of Business Administration program to discuss the use of AI technologies in the recruitment process. It can also be used in data analytics courses to emphasize the importance of ethics in decision-making. This case offers an opportunity for students to learn about the power and challenges of AI-based recruitment tools. It would be especially useful in courses on AI that address the societal impact of AI technologies, especially in combination with HR issues or ethical considerations.
Learning objectives
Working through the case and assignment questions will allow students to do the following:
- Explore the legal and ethical challenges of AI recruitment bias.
- Analyze how to adapt AI tools for efficient and fair hiring.
- Analyze strategies to communicate transparently to different stakeholders about AI bias in recruitment.
- Develop crisis management strategies for dealing with public and legal concerns related to AI.
- Assess future AI innovations in recruitment and responsible integration strategies.
To cite this case: Mahanta, P., Kumar, M., & Puri, S. (2025). Workday: Navigating the artificial intelligence bias dilemma. Ivey ID: W42546. London, Canada: Ivey Publishing
To access this case: https://www.iveypublishing.ca/s/product/workday-navigating-the-artificial-intelligence-bias-dilemma/01tOF000007PEJtYAO
