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ARTICLE · 21 MAY 2025

Powering Progress: Key Legal Considerations For Using AI Systems In-house

CMS INDUSLAW
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Last year, the American Equal Employment Opportunity Commission ("EEOC") settled its first lawsuit against discrimination in hiring by an AI tool.

IndiaTechnology
Namita Viswanath
Namita Viswanath
Naqeeb Ahmed Kazia
Naqeeb Ahmed Kazia
Tanvi Chaturvedi
Tanvi Chaturvedi
Aditya Subarno
Aditya Subarno
Author LinkedIn connections

1. INTRODUCTION

Last year, the American Equal Employment Opportunity Commission ("EEOC") settled its first lawsuit against discrimination in hiring by an AI tool.1 The EEOC sued 3 (three) companies that provided tutoring services under the "iTutorGroup" brand name ("iTutorGroup") alleging that iTutorGroup violated the Age Discrimination in Employment Act, 1967 ("ADEA"), as its AI software automatically rejected over 200 (two-hundred) female applicants aged 55 (fifty-five) years and above and male applicants aged 60 (sixty) years and above, due to their age. The parties eventually signed a consent decree according to which iTutorGroup agreed to pay USD 365,000 (United States Dollars Three Hundred and Sixty-Five Thousand) to the group of automatically rejected applicants, adopt anti-discrimination policies, and conduct internal trainings to ensure compliance with equal employment opportunity laws.This case illustrates a critical challenge in the field of

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