Artificial intelligence · Article
How algorithmic bias in AI hiring tools can replicate workplace discrimination
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In brief
Algorithmic bias in hiring AI happens when models trained on historical workforce data, resumes, or online images absorb and repeat existing patterns of gender, race or age skew. Documented cases — from Amazon's scrapped recruiting tool to a University of Washington study on large language models — show the bias is not hypothetical, which is why New York City and California have introduced specific legal rules for employers using these systems.
Companies increasingly use software built on machine learning to screen résumés, rank candidates and even conduct early-stage interviews. Researchers and regulators have found that several of these systems produce different outcomes for applicants of different genders, races or ages, even when the underlying qualifications are identical.
What is algorithmic bias in hiring?
Algorithmic bias occurs when a machine-learning system's outputs systematically favor or disadvantage certain groups, independent of job-relevant qualifications. Public comments on a draft standard from the U.S. National Institute of Standards and Technology (NIST), SP 1270, 'Towards a Standard for Identifying and Managing Bias in Artificial Intelligence,' published on NIST's website, describe this as a socio-technical problem: bias can enter not only through the statistical design of an algorithm but through the historical data it is trained on and the human and institutional context in which it is deployed.
In hiring specifically, a model is usually trained on past résumés, past hiring decisions, or text generated by a large language model (LLM). If the workforce that produced that historical data was itself skewed by gender, race or age — a common feature of many industries — the model can learn to reproduce that skew as if it were a measure of merit.
A documented case: Amazon's scrapped recruiting engine
One of the earliest and most widely cited examples involves an experimental recruiting tool Amazon built starting in 2014 to score job applicants from one to five stars, according to the American Civil Liberties Union (ACLU). The system was trained by observing patterns in résumés the company had received over roughly a decade, a pool that was overwhelmingly male, reflecting male dominance in the technical roles involved.
The ACLU reports that the tool penalized résumés containing the word 'women's' — for example, 'women's rugby team' — and downgraded graduates of two all-women's colleges, while favoring resumes that used verbs more common in men's technical résumés, such as 'executed' and 'captured.' Amazon's engineers attempted to fix the pattern but, according to the ACLU's account of reporting on the project, concluded the underlying problem could not be guaranteed away and shut the tool down in 2015, about a year after it began being tested.
What recent research on AI resume screening found
Newer research has tested the large language models now embedded in many commercial hiring products. A University of Washington study presented in October 2024 at the AAAI/ACM Conference on Artificial Intelligence, Ethics and Society tested three open-source LLMs — from Mistral AI, Salesforce and Contextual AI — by assigning 120 names associated with white and Black men and women to more than 550 real résumés and ranking them against over 500 real job postings across nine occupations, producing more than three million résumé-to-job comparisons.
Lead author Kyra Wilson and co-author Aylin Caliskan, both at the University of Washington's Information School, found that résumés with white-associated names were favored 85% of the time compared with 9% for Black-associated names, and male-associated names were preferred 52% of the time compared with 11% for female-associated names. The models never favored Black male-associated names over white male names, a pattern the researchers said became visible only when race and gender were analyzed together rather than separately.
Key findings at a glance
| Source | What was tested | Key finding |
|---|---|---|
| Amazon (reported by ACLU) | Internal résumé-scoring tool, 2014–2015 | Penalized the word "women's" and women's-college graduates; project scrapped in 2015 |
| University of Washington, Oct. 2024 | 3 open-source LLMs, 3M+ résumé-job comparisons | White-associated names favored 85% vs. 9% for Black-associated names; male names 52% vs. 11% for female names |
How the bias mechanism works
In each documented case, the pattern traces back to training data or associations the model absorbed from text it was trained on, rather than to an explicit instruction to discriminate. The Amazon tool learned from a historically male applicant pool. The LLMs tested by University of Washington researchers carried name-based racial and gender associations from the broader text corpora on which they were trained.
Comments on NIST's draft bias standard note that because these systems operate within existing social and institutional structures, removing bias from the dataset alone does not guarantee a fair outcome — a conclusion that matches Amazon's own experience, as described by the ACLU, when engineers' repeated fixes failed to resolve the underlying pattern.
How regulators are responding
New York City's Local Law 144, enforced by the Department of Consumer and Worker Protection since July 2023, requires employers using an 'automated employment decision tool' for hiring or promotion to commission an independent bias audit annually, publicly post a summary of the audit results, and give candidates at least ten business days' notice before the tool is used, according to the law firm Pivot Point Security's summary of the measure. Violations can draw civil penalties ranging from $500 to $1,500 per violation, according to the same summary.
California's Civil Rights Council adopted new regulations under the state's Fair Employment and Housing Act, effective October 1, 2025, clarifying that an employer's use of an 'automated-decision system' can violate state law if it harms applicants or employees based on protected characteristics such as race, gender or disability, according to the Council's own June 2025 announcement. The regulations require employers to retain automated-decision data for at least four years and note that certain automated assessments eliciting disability-related information may count as unlawful medical inquiries.
These new regulations on artificial intelligence in the workplace aim to help our state's antidiscrimination protections keep pace.
What this means for job applicants and employers
- Bias found in hiring AI to date has tracked existing social patterns in training data — historical résumés, online images, or general-purpose text — rather than appearing at random.
- Documented effects include favoring résumés from historically dominant demographic groups and producing systematically different outcomes for identical underlying qualifications.
- New York City and California now impose specific legal obligations — audits, record-keeping, or both — on employers using these tools, though requirements differ by jurisdiction.
- University of Washington researchers say bias identified in one demographic category (e.g., race alone) can mask different effects visible only when categories are combined, such as race and gender together.
Questions
- What is algorithmic bias in hiring, in simple terms?
- It is when AI software used to screen or rank job candidates produces systematically different results for people of different genders, races or ages, even though their qualifications are the same, usually because the system learned patterns from biased historical data.
- Did Amazon's AI recruiting tool actually discriminate against women?
- According to the ACLU's account of the case, Amazon's internal tool penalized résumés containing the word 'women's' and downgraded graduates of two all-women's colleges, after being trained on a decade of résumés from a largely male applicant pool. Amazon scrapped the project in 2015.
- Do large language models used in hiring show racial bias?
- A University of Washington study presented in October 2024 found that among three open-source LLMs tested, résumés with white-associated names were favored 85% of the time versus 9% for Black-associated names across more than three million résumé-to-job comparisons.
- What laws currently regulate AI hiring tools for bias?
- New York City's Local Law 144 (enforced since July 2023) requires independent annual bias audits and candidate notice for automated employment decision tools, while California's Civil Rights Council regulations, effective October 1, 2025, clarify that automated-decision systems can violate the state's Fair Employment and Housing Act if they produce discriminatory outcomes.
- Can removing bias from training data fully fix an AI hiring tool?
- Not necessarily. Comments on NIST's draft AI bias standard note that bias is a socio-technical issue tied to the context in which a system is used, and Amazon's engineers, according to the ACLU, found that repeated attempts to fix its tool's bias did not guarantee a fair outcome, leading to the project's cancellation.
Sources
- ACLU — Why Amazon's Automated Hiring Tool Discriminated Against Women
- University of Washington News — AI resume screening shows racial and gender bias, study finds
- California Civil Rights Council — Secures Approval for Regulations to Protect Against Employment Discrimination Related to Artificial Intelligence
- Pivot Point Security — What is NYC's AI Bias Law and How Does It Impact Firms Using HR Automation?
- NIST — stm comments on NIST SP 1270, Towards a Standard for Identifying and Managing Bias in Artificial Intelligence
This piece was prepared with artificial intelligence and passed an automated source check before publication. If you see an error, ask for a correction. Request a correction or reply · How we make this
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