INNOVAREModule 9 · AI in Human Resources & Organisational Processes

Case 1: The Hiring Machine

How AI enters HR through the front door — recruiting, performance and engagement — and what happens when the screening is done by a model nobody can question.

August 2026 · Case 1 of 6
As you read — hold this question

If an algorithm rejects you before a human ever reads your name, who is accountable for the decision — the employer, or the software vendor?

1 in 4
Roughly 1 in 4 organisations already use AI in hiring; among large employers it is the majority. Most candidates never know a model screened them first.

Human Resource Management (Oracle, 2024) is the strategic work of hiring, supporting and motivating people to meet business goals. The course says AI lands in three places first — recruiting, performance management, employee engagement. This case is the front door: recruiting. It is also where the first lawsuits landed.

The three application areas
The textbook versionQuiz: the 3 HR areas + benefits

Where AI enters HR — and the benefits the course lists

HRM (Oracle, 2024): recruiting, hiring, training, compensating and developing people to meet organisational goals. AI's three most prominent HR application areas are recruiting, performance management and employee engagement.

The course's benefit list (IBM n.d.; IMD 2025): enhanced recruitment, improved employee experience, increased efficiency and administrative productivity, better decision-making, reduced errors, improved engagement, personalised learning & development, enhanced workforce planning, and better talent retention.

The named platforms
Workday ("the AI platform for people, money, and agents") · HireVue (video interviewing / assessment) · Eightfold.ai (talent intelligence). All three appear in the deck as vendor homepages.
The pitch
Faster sourcing and screening, predictive analytics on who will stay, generative-AI self-service for policy questions. The promise is speed and consistency at scale.
Carry this

Three areas: recruiting, performance, engagement. Name the platforms — Workday, HireVue, Eightfold — and remember AI's first HR job is screening people.

What the slides skip
The rest of the story

The real cases: when hiring AI went to court

The deck shows the vendors; it does not show the lawsuits. Mobley v. Workday (N.D. Cal., No. 3:23-cv-00770) is a class action alleging Workday's AI screening tools discriminated by age, race and disability. In 2024 the court let it proceed — and crucially allowed the theory that a software vendor can be liable as an employer's agent. In May 2025 it was allowed to advance as a nationwide age-discrimination collective action.

EEOC v. iTutorGroup (2023): a $365,000 settlement after recruiting software was set to auto-reject female applicants 55+ and male applicants 60+. And Amazon scrapped its own experimental recruiting engine in 2018 (Reuters) after it taught itself to downgrade CVs containing the word "women's".

The mechanism
A model trained on a company's past hires learns the company's past preferences. If the history is biased, the model launders that bias through a maths process that looks objective — and scales it to every applicant at once. Bias in one recruiter is a problem; bias in the screening model is a policy.
The accountability question
The other side

“It's people, not the AI”

The defence employers reach for is that the algorithm decided. The through-line of this module rejects that: accountability cannot be delegated to a model. Someone chose to buy the tool, chose the training data, and chose not to keep a human in the loop. The Mobley agent theory is the law catching up to that idea.

The practical fix is not a smarter model but governance: bias audits before deployment (New York City's Local Law 144 now mandates them for automated hiring tools), disclosure to candidates, and a human who can be named as responsible for the outcome.

The other side

The question is never "was the AI accurate?" It is "who is accountable when it is wrong?" — and the answer is always a person.

Quick recall — without looking back

Test yourself on this case

Question 1 of 3

Name the three HR areas AI enters first, and two of the platforms the course names.

Recruiting, performance management, employee engagement. Platforms: Workday, HireVue, Eightfold (any two).
Question 2 of 3

What made Mobley v. Workday legally significant?

The court allowed the theory that an AI vendor can be liable as the employer's agent for discriminatory screening (No. 3:23-cv-00770), and in 2025 let it proceed as a nationwide age-discrimination collective action — a direct answer to “the algorithm decided.”
Question 3 of 3

Why does a hiring model trained on past hires reproduce bias?

It learns the organisation's historical preferences from the data. If the history is biased (as with Amazon's scrapped 2018 tool downgrading “women's”), the model launders and scales that bias behind a veneer of objectivity.

Module 9 Videos

Module 9 · Short · The Algorithmic Boss
Module 9 · Long Form · The Algorithmic Boss (Short-Doc)

Sources

Module content
BUSN9049 Module 9 — lecture deck & videos (HRM definition, three areas, benefits, platforms). Flinders University, 2026.
Hiring litigation
Mobley v. Workday, Inc., No. 3:23-cv-00770 (N.D. Cal.); EEOC v. iTutorGroup settlement (2023); Reuters, “Amazon scraps secret AI recruiting tool” (2018).
Regulation
NYC Local Law 144 (automated employment decision tools, bias-audit mandate).