When filling out a job application, it may not be anyone from human resources reading your career and education history. Instead, it could be software scanning applications for the best candidates. But alongside artificial intelligence’s reported efficiency are growing reports and criticism that such algorithms can be coded with biased data that could foster discrimination in housing, loan approval and employment.

Notably, federal courts have split if disparate impact, a discriminatory policy or procedure that appears neutral but adversely affects members of a protected group, applies to job applicants. However, without disparate impact coverage, AI-backed decisions can’t run amok, management-side lawyers warn.

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