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Garg and Kacholia's Eightfold AI sued for opaque hiring profiles
Job seekers Sruti Bhaumik and Erin Kistler blamed Eightfold's AI generated profiles for repeated rejections from companies.
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Jeffin T. Kaleekal - Fri, 23, Jan 2026
- 01:48 EST
- 31
Varun Kacholia and Ashutosh Garg, the cofounders of Eightfold AI / Varun Kacholia via LinkedIN
AI hiring platform, Eightfold AI, was sued in California for allegedly compiling reports on job applicants and sharing them with companies without explicit consent from the applicants, on Jan. 20.
Founded by IIT alumni Ashutosh Garg and Varun Kacholia, Eightfold has been named in a class-action suit filed by job seekers Sruti Bhaumik and Erin Kistler. The complainants allege that the company is compiling detailed talent profiles, including personality descriptions and 'fit scores' without notifying the applicants or giving them access to their own profiles and thereby denying them the opportunity to flag errors in the AI tool's assessment, which affects job prospects.
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Bhaumik submitted applications to companies such as Microsoft and Kistler applied to positions at multiple companies that use Eightfold’s platform, including PayPal. Both individuals hold science or technology degrees and possess over 10 years of professional experience. Neither was hired, and both allege that Eightfold’s AI-driven tools contributed to their rejection.
Eightfold boasts of ties with top hirers like MM Group, Vodafone, Eaton, Coca-Cola Europacific Partners (CCEP), EY, Amdocs, and Forvia, resulting in a huge number of people being impacted by Eightfold AI's profile screening.
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