Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

One of the fastest-growing workplace applications of artificial intelligence is in hiring, but imperfect algorithms leave qualified women and candidates of color out — and can ultimately build weaker teams.

Why it matters: Algorithms are most often used to make the initial applicant screening process — the resume review — more efficient. But their role cannot be underestimated, as around 95% of all job applicants are rejected based on resumes.

But, but, but: Using AI to recruit isn't inherently bad, says Danielle Li, a professor at MIT and c0-author of a new working paper on algorithmic hiring. It's about using the right kind of algorithm.

Li and her colleagues tested different types of algorithms using a Fortune 500 company's data. The AI's test was to select candidates for first-round interviews for jobs in consulting, financial analysis and data science — all of which pay well and have been criticized for lacking diversity.

One algorithm used a traditional machine learning approach, making predictions about the future based on data from the past.

  • For example, if a company had hired several white, male computer science degree-holders from Stanford and those people had been relatively successful at the firm, the algorithm would demonstrate a strong preference for those applicants.
  • "This approach works if you think history is complete," Li tells Axios. "You have to assume that the things that predicted quality in the past will predict quality in the future. But we know that that's not true."

Another algorithm used a much more exploratory approach, incorporating bonus points for applicants who had untraditional majors, came from different places or had unusual work histories. The algorithm was not instructed to prefer applicants of color or female applicants.

  • This approach treated hiring as a dynamic problem, Li says, valuing giving applicants the opportunity to show their chops.
  • This algorithm increased the share of Black and Hispanic candidates selected for first-round interviews from 10% (with human evaluators) to 23%. The share of women selected went from 35% to 39%.

The bottom line: "Lots of companies have taken interest in using AI tools in the recruiting process," Li says. "In that world, algorithms stand to have a big impact."

Go deeper

Bryan Walsh, author of Future
Nov 14, 2020 - Technology

AI talent appears open to working on defense — with caveats

An aerial view of the Pentagon. Photo: Bill Clark/CQ Roll Call, Inc. via Getty Images

A new survey offers some evidence that most artificial intelligence experts are positive or neutral when it comes to working with the Pentagon on AI-enabled projects.

Why it matters: Employee concerns have led some tech companies to pull back from working on defense-related projects in the past, but for many in the AI world, the chance to work on intellectually challenging projects — and the Pentagon's not insignificant budget — seems too good to pass up.

Dan Primack, author of Pro Rata
24 mins ago - Economy & Business

Why fears of a SPAC bubble may be overblown

Illustration: Annelise Capossela/Axios

The SPAC surge continues unabated, with 10 new ones formed since Wednesday morning. And that's OK.

Between the lines: There are growing concerns that retail investors are about to get rolled, with smart sponsors taking advantage of dumb money.

Schumer says Senate will stay through weekend to vote on COVID relief

Senate Majority Leader Chuck Schumer (D-N.Y.) accused Sen. Ron Johnson (R-Wis.) of going to "ridiculous lengths" to show his opposition to a COVID relief package widely supported by the American public, after Johnson demanded that the entire 600-page bill be read on the Senate floor.

The state of play: Johnson's procedural move will likely add 10 hours to the 20 hours already allotted for debate, during which Republicans will propose amendments to force uncomfortable votes for Democrats. Schumer promised that the Senate will stay in session "no matter how long it takes" to finish voting on the $1.9 trillion rescue package.