SYDNEY, March 30, 2026, 05:15 (AEDT)
Woolworths Group Ltd, listed in Australia, is under renewed pressure over its use of AI in hiring after additional applicants in New Zealand complained that the tech wrongly judged their personalities, blocking them before any human got involved. The retailer insists its process is “fair and accessible,” saying there’s a manual review step following the initial automated screen. Newstalk ZB
Why does this latest controversy hit home? Woolworths, a major employer in both Australia and New Zealand, has relied on the Sapia AI platform since 2020, the company confirms. A Sapia case study puts Woolworths’ recruitment challenges in sharp relief: around 1 million job applications pour in each year for 40,000 positions. That volume explains the retailer’s move toward automation for faster in-store hiring.
Steve Holt, 51, says he’s been knocked back six times by Woolworths and didn’t talk to a single human—he calls the hiring system an “AI bouncer”. For Auckland’s Lucy Scott, her 16-year-old son was told by the feedback that his self-belief risked putting people off, even though she describes him as respectful, reliable, and already used to long hours. Newstalk ZB
Suzanne—who used to work in airline customer service and is now semi-retired—recalled being flagged by the tool as introverted, resistant to change, and too relaxed. Woolworths said the screening system has processed over 1 million applicants in Australia and New Zealand since it rolled out. The company also noted that demographic data are kept anonymous and reviewed for bias.
Woolworths has previously turned to the technology to help manage large-scale recruitment. In a case study from Sapia, Keri Foti—who was then head of advisory and talent acquisition services at Woolworths—noted the team valued the tool’s “mobile” and “interactive” features. According to the vendor, some applicants could get from job ad to offer in less than 24 hours. Sapia
Quick AI screening isn’t a shield against legal exposure. Giuseppe Carabetta, associate professor of workplace and business law at the University of Technology Sydney, pointed out last year that while AI hiring tools promise “faster screening,” they’re prone to repeating entrenched bias—and most candidates can’t insist on a human interview. This month, Lander & Rogers made it clear: employers are still liable if an outside AI tool leads to discriminatory practices. 9News
Still, these grievances voiced this week fall short of proving systemic bias by themselves. Woolworths pointed to its existing checks and balances, saying most responses to the system were favorable. New Zealand’s Ministry of Social Development also noted it hadn’t received concrete complaints.
Woolworths is under the microscope right as it’s trying to win shoppers back. In February, Reuters reported the supermarket chain beat first-half profit forecasts thanks to price cuts that boosted sales. Then, in March, the company’s AI assistant, Olive, came under fire for giving bizarrely humanlike responses—a misstep that highlighted just how quickly automation can trip up a brand.
