AI is more likely than humans to form biases when hiring

TL;DR

LLMs can develop their own biases from experience, not just their training data.
In a simulated hiring game, LLMs stereotyped job applicants more than human participants.
LLMs tend to generalize rapidly from limited data, which can lead to premature stereotyping.
Newer models with higher reasoning capabilities showed stronger biases.
Incentivizing diverse hiring and providing relevant personal information reduced bias in LLMs.
The real-world implications are significant as AI is increasingly used in hiring, loan, and parole decisions.

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