scale ai unveils new tools as microsoft ships new models

Key Takeaways

• A class-action lawsuit was filed against Eightfold AI on January 22-23, 2026, alleging its AI hiring tools collect hidden, inaccurate data and violate the Fair Credit Reporting Act.
• Companies like Microsoft and Starbucks utilize Eightfold AI's technology, which is now under legal scrutiny for its applicant rating system.
• At the World Economic Forum on January 23, 2026, Nvidia CEO Jensen Huang expressed optimism about AI creating higher-paying jobs, particularly in energy and chips.
• A WEF paper from January 23, 2026, warns of a growing AI investment gap, disadvantaging smaller economies due to the high cost and limited access to essential AI infrastructure.
• Amazon CEO Andy Jassy highlighted the importance of custom AI chips like Trainium for performance and cost benefits.
• Salesforce CEO Marc Benioff reported strong AI growth for his company and called for increased AI regulation.
• Security experts discovered vulnerabilities in Model Context Protocol (MCP) servers from Anthropic and Microsoft, with Anthropic fixing issues in its Git MCP server (update to 2025.12.18+ recommended) and a flaw found in Microsoft's MarkItDown MCP server.
• Microsoft CEO Satya Nadella announced LinkedIn is creating a "full-stack builder" role, consolidating multiple positions to accelerate product development using AI coding assistants.
• The creator of the Sarco Pod revealed a new model on January 23, 2026, which may include an AI-powered psychological evaluation feature.
• Local governments face new challenges in AI governance, needing strong institutional design and clear oversight as AI systems take on tasks requiring human judgment.

Lawsuit challenges Eightfold AI hiring tool

Erin Kistler and Sruti Bhaumik filed a class-action lawsuit against Eightfold, an AI hiring platform, on January 23, 2026. They claim Eightfold uses AI to collect public data from sites like LinkedIn and social media to rate job applicants. This system creates "phantom reports" that may contain inaccurate information, which applicants cannot see or correct. The lawsuit argues that Eightfold violates the Fair Credit Reporting Act and California's Unfair Competition Law. This case aims to ensure job seekers have a chance to correct their information and have a person review their applications.

Workers sue Eightfold AI over hidden hiring tools

A class-action lawsuit was filed in California on January 22, 2026, against Eightfold AI by Erin Kistler and Sruti Bhaumik. The lawsuit claims Eightfold AI uses "hidden" tools to collect sensitive and often inaccurate information about job applicants from public sources like LinkedIn and social media. Eightfold AI then ranks candidates on a 0-5 scale, but applicants cannot see or dispute these reports. The plaintiffs argue this violates the Fair Credit Reporting Act and state laws, demanding AI hiring tools meet the same standards as credit bureaus. Companies like Microsoft and Starbucks use Eightfold AI's technology.

Davos leaders say AI will create many jobs

Business leaders at the World Economic Forum in Davos on January 23, 2026, mostly expressed optimism about AI creating new jobs. Nvidia CEO Jensen Huang stated that AI will lead to higher pay and more jobs in areas like energy and chips. However, some, like UNI Global Union's Christy Hoffman, worried that AI could mean "doing more with fewer workers." Cloudflare CEO Matthew Prince also warned that AI might harm small businesses. Bill Gates believes AI makes the economy more productive and that any problems are solvable.

WEF paper warns of growing AI investment gap

A new paper from the World Economic Forum on January 23, 2026, warns about a growing gap in AI investment between large and small economies. AI infrastructure, like data centers and computing power, is becoming essential for a country's success. Smaller and mid-sized countries face a disadvantage because these resources are expensive and hard to get. Nvidia CEO Jensen Huang agrees that every country should see AI as vital. The paper also points out challenges like limited land, energy, water, and a shortage of skilled workers.

Top CEOs share insights on AI and economy at Davos

Six CEOs from major companies shared their views on AI, credit card rates, and housing at the World Economic Forum in Davos on January 23, 2026. Amazon CEO Andy Jassy explained that custom AI chips like Trainium are important for better performance and lower costs. Salesforce CEO Marc Benioff noted strong AI growth for his company and called for more AI regulation. Cisco CEO Chuck Robbins discussed AI's use in customer service and manufacturing, with Cisco partnering to bring these services to businesses. Honeywell CEO Vimal Kapur talked about educating clients on quantum computing and working with Nvidia. Wells Fargo CEO Charles Scharf also commented on President Trump's idea to cap credit card interest rates.

AI security risks found in Anthropic and Microsoft servers

Security experts found serious flaws in Model Context Protocol (MCP) servers from Anthropic and Microsoft. MCP acts like a universal connector for AI, but it does not have built-in security features, making it risky. Cyata researchers found three vulnerabilities in Anthropic's Git MCP server that could let attackers run code remotely or steal sensitive data. Anthropic fixed these issues late last year, and users should update to version 2025.12.18 or newer. BlueRock Security found a flaw in Microsoft's MarkItDown MCP server that could allow attackers to access internal files and even gain control of AWS account data.

New suicide pod model may use AI evaluation

The creator of the controversial Sarco Pod, a "suicide pod," revealed a new model on January 23, 2026. This updated pod could allow two people to use it at once. It might also include an AI-powered feature to perform psychological evaluations of users. The creator believes that a piece of software could assess patients more effectively than a human psychiatrist.

Local leaders face AI governance challenge

A special report on January 23, 2026, explains that artificial intelligence creates a new challenge for city and county leaders. AI systems are now doing tasks like analysis and planning that used to require human judgment. This means local governments must rethink how they manage accountability, performance, and their workforce. Effective AI use depends on strong institutional design, not just technical ability. Leaders need clear rules and oversight before using AI widely to ensure it helps the public and maintains trust.

LinkedIn creates new full-stack builder role with AI

Microsoft CEO Satya Nadella announced that LinkedIn has combined several job roles into a single "full-stack builder" position. Previously, LinkedIn had separate product managers, designers, frontend engineers, and backend engineers. This change aims to increase the speed of product development and adapt to new AI workflows. Nadella explained that AI coding assistants now allow individuals to handle tasks that once needed multiple specialists. This strategy helps Microsoft grow its revenue without increasing its total number of employees.

Sources

• Proposed Class-Action Lawsuit Targets Eightfold’s AI Hiring Platform
• Workers challenge ‘hidden’ AI hiring tools in class action with major regulatory stakes.
• 'Jobs, jobs, jobs' the AI mantra as fears take back seat in Davos
• WEF paper warns of widening AI investment gap
• AI, credit card rates, and housing — what 6 of our portfolio name CEOs said in Davos
• Anthropic, Microsoft MCP Server Flaws Shine a Light on AI Security Risks
• Controversial 'suicide pod' could potentially use AI-powered feature
• Why AI Poses a Governance Test for City and County Leaders
• LinkedIn Combined Product Manager, Designer, Frontend And Backend Engineer Roles Into A Single “Full-stack Builder” Role: Satya Nadella