Workday: Navigating The Artificial Intelligence Bias Dilemma

Prabal Mahanta, Manish Kumar, Sandeep Puri

Product #:W42546

Supplier:Ivey/Temple

Discipline:Human Resource Management, Information Systems

Setting:United States, 2023

Details:Case (PDF) • 4 pages • 2025-03-10

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United States North America

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$10.54

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AWARD WINNER - 2024 Fox International Case Writing Competition

In February 2023, Derek Mobley filed a lawsuit against Workday Inc., claiming its AI hiring tools discriminated against Black candidates. The lawsuit accused Workday of violating civil rights laws and aiding discrimination under California’s Fair Employment and Housing Act. While AI was increasingly being used in hiring, legal challenges were rare, partly because candidates were often unaware of algorithmic evaluations, and such lawsuits were complex. What were the possible implications of Mobley’s lawsuit for a company like Workday? What steps could companies take to ensure fairness in AI-powered recruitment processes, and how could AI hiring tools be adjusted to prevent the reinforcement of existing biases or the creation of new forms of discrimination?

Learning Objectives

This case study can be used in HR management and organizational behaviour courses at the graduate level 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.

Working through the case and assignment questions will give students the opportunity 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.