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ANALYSIS
8 AUG 2026
AI · hiring

AI models sorted fictional ethnic groups into job types more sharply than people did

A peer-reviewed study ran 16 language models through a 40-round hiring game in which four made-up demographic groups were equally likely to succeed at everything. Frontier models funnelled the groups into particular job types at 1.39 on a 0–2 scale, against 0.84 for human players — and the models that score best on the standard bias benchmark stratified worst.

1.39
Mean stratification index across frontier models, on a scale where 0 is an even spread across job types and 2 is complete separation
0.84
Human participants playing the same game in the psychology study the baseline is drawn from
26.3%
How often models named the genuinely best-suited group after 40 rounds of feedback, in a variant where groups really did differ. Chance is 25%
The experiment

Four made-up groups, twenty jobs, no real differences

Researchers at Princeton and the University of Chicago gave language models a job: act as a hiring consultant for a fictional city and fill twenty posts — doctors, lawyers, childcare aides, janitors and others — drawing candidates from four invented demographic groups called the Tufa, Aima, Reku and Weki. Each round presented one vacancy and one applicant from each group. The model chose, learned immediately whether the hire had worked out, and moved on.1

The design's central feature is that there was nothing to find. Every candidate from every group had an identical 90 per cent chance of succeeding at every job. Any pattern a model settled on was noise. Sixteen models were tested — GPT, Claude, Gemini, Llama and Qwen families plus two reasoning models, OpenAI's o3 and DeepSeek-R1 — at 30 runs of 40 rounds each, under both direct and chain-of-thought prompting.1

The paradigm is borrowed from psychology, where human participants played the same game and built stereotypes out of the same noise: having seen one Tufa succeed as a doctor, they kept placing Tufas in similar roles rather than testing alternatives, and afterwards rated the groups as differing in warmth and competence.2 The question this study asked was whether models do the same thing, and how much.

What the data shows

Every frontier model separated the groups more than people did

The authors measure the outcome with a stratification index: 0 if each group is spread evenly across the four job types, 2 if each group is confined entirely to one. Fair random assignment scores 0.25. Human participants scored 0.84. The mean across frontier models was 1.39 — 65 per cent above the human figure, and roughly 70 per cent of the way to the scale's ceiling.1

Exhibit 01
Stratification index in the hiring game, 0–2 scale
Source: Wu, Liu, Bai and Griffiths, ICML 2026. Shows only the four models whose scores the paper states numerically, plus the frontier-model mean and the two baselines; the remaining models appear in the paper's figures but not as printed values, and are not reproduced here.1
Key finding. Every frontier model tested scored above the human baseline of 0.84. The lowest — Qwen 2.5-72B under chain-of-thought prompting, at 0.89 — was the only one to come within the human range.

One claim that does not survive the numbers is that reasoning models are the worst offenders. o3 posts the highest single score at 1.83, close to the theoretical maximum. But Claude Sonnet 4 under direct prompting reaches 1.79, with a confidence interval of 1.70 to 1.87 that contains o3's figure outright, and the second reasoning model, DeepSeek-R1, sits at 1.41 — within 0.02 of the frontier average. Two reasoning models, one at the top and one in the middle, is not a pattern.

The inversion

The models that pass the bias benchmark fail this test

The trend that does hold is about capability. Within every model family tested — Claude, GPT, Gemini, Llama 3.2, Llama 4 and Qwen 2.5 — newer and larger models stratified statistically significantly more than their predecessors. Claude Sonnet 4's score under direct prompting was more than eight times Claude 3 Haiku's.1

That runs against the direction of travel on the standard measure. BBQ, the widely used bias benchmark, poses single-turn questions designed to catch stereotyped answers, and successive model generations have steadily improved on it.3 Plotted against this study's results, the relationship inverts: the models that score better on BBQ produce the more stratified allocations.1 A separate preprint auditing fourteen models with paired résumés reports the same directional shift on the conventional test, finding that models released from 2024 onwards show either no callback gap or one favouring Black applicants, where a 2023-vintage model reproduced the pro-White gap seen in field experiments.5

Read together, one interpretation is that single-turn fairness tests and multi-turn behaviour are measuring different things, and that improvement on the first carries no guarantee about the second. That is an interpretation, not a finding: no study here isolates why the two diverge.

Why it happens

The models never actually learned who was best

The mechanism the authors propose is a failure of exploration. A model that sees an early success locks onto it and stops testing alternatives, so random feedback hardens into a rule. Two pieces of evidence support this. First, the group-to-job pairings a model landed on differed from run to run — the models' stochasticity score was 0.52 against 0.47 for humans, meaning the patterns were being generated fresh in each run rather than carried in from training data.1

Second, when the researchers ran a variant in which the groups genuinely did differ in aptitude, and then asked models which group was best suited to each job type, the answers were close to random.

Exhibit 02
Which group did the model name as best suited to a job type?
Source: Wu, Liu, Bai and Griffiths, ICML 2026, appendix J. Success rates set at 0.90, 0.85, 0.80 and 0.75 by group and job type. GPT-4o and Gemini 2.5 Flash, direct and chain-of-thought prompting, 30 trials per setting. With four groups, chance is 25 per cent.1

After 40 rounds, models identified the genuinely best-performing group 26.3 per cent of the time — 1.3 points above chance — and named the worst-fitting group 23.3 per cent of the time. Doubling the evidence to 80 rounds, and telling the models they would have 80, moved the figure by −0.1 points. The stratification is not the residue of learning something real. It is early noise, locked in and never revisited.1

The effect was not confined to hiring. Rebuilt as refugee resettlement and as military conscript assignment, with the game's points system removed entirely, the same models produced mean stratification indices of 1.13 and 1.26 — lower than in the hiring frame, but still well above the human baseline.1

Ryan Liu, a Princeton doctoral student and joint first author, attributes the pattern to the same capacity that makes the models useful: they really are eager to create generalizations from limited data. Angelina Wang, a Cornell computer scientist who did not work on the study, has argued the finding matters more as chatbots gain memory and personalisation, because those features are what let a model carry a belief from one interaction into the next.6

What helped

Telling models to be fair did little; changing what they were paid for worked

The study tested three families of intervention. Adjustments to the model itself largely failed: chain-of-thought prompting reduced stratification in most frontier models but usually not to statistical significance, and raising the sampling temperature to 1.5 produced no significant reduction for Gemini 2.5 Flash, GPT-4o or Llama 4 Maverick. It did for Qwen 2.5-72B, whose resulting score of 0.91 was still above the human baseline.1

Giving models more to go on helped, but only when the extra detail was relevant to the decision.

Exhibit 03
Fall in stratification when candidates carried extra details
Source: Wu, Liu, Bai and Griffiths, ICML 2026. Mean reduction in the stratification index, measured in the refugee resettlement version of the task across five frontier models. Longer bars are better. Cosmetic attributes were assigned to candidates at random, as were the job-relevant ones.1

Age and education together cut the index by 0.70; hair colour and tattoo shape together by 0.42. The authors read this as models being sensitive to whether a feature plausibly explains an outcome — which means the benefit in a real system depends on the quality of the data it holds. Even with the best features supplied, Gemini and Claude retained indices around 0.7.1

The intervention that worked was neither of these. Of four prompt steers — instructing the model to be fair, invoking its own stated values, describing a community norm of valuing diversity, and adding an explicit diversity term to the bonus it was maximising — only the last was robustly effective, pushing almost all models below both the random baseline and the human score. The first three were partially successful at best. Claude Sonnet 4 declined to respond at all under the internal-values steer, under both prompting styles.1 The authors' reading is that models align with a value far more reliably when it is written into the objective they are scored against than when it is stated as a principle.

What we don't know

This is a simulation, and it does not measure discrimination in any real hiring process. The groups are invented, the success rate is a fixed 90 per cent, the reward is points, and no actual candidate is affected. Whether the same dynamic appears in deployed systems is untested here.

The human baseline is not a control run alongside the models. It comes from a separate psychology study of 200 participants in the matching condition, recruited from a US online subject pool, who were paid real bonuses rather than nominal points.2 Humans and models were not run contemporaneously or under identical incentives, so the 1.39-against-0.84 comparison is between two studies, not two arms of one.

Exhibit 01 shows four models because those are the four whose stratification indices the paper prints as numbers. The other twelve appear only in plotted figures, and this desk does not read values off charts. The frontier-model mean of 1.39 is the paper's own stated figure, not an average of the four shown.

How much of UK hiring this could touch is not established. The Information Commissioner's Office audited AI sourcing, screening and selection tools between August 2023 and May 2024, issuing 296 recommendations and finding tools that inferred ethnicity and gender from applicants' names and others that let recruiters filter on protected characteristics. That audit explicitly excluded generative AI.4 The mechanism described in this study therefore sits outside the scope of the only UK regulatory audit of the sector to date.

By the numbers
16
Models tested, across six families
1,200
Hiring decisions per model and prompt style
1.83
Highest index recorded, by OpenAI's o3
0.25
Index produced by fair random assignment
Caveat. The strongest objection to this piece is external validity. A 40-round game with four invented ethnicities and a flat 90 per cent success rate is a long way from a résumé pipeline, and the paper's own discussion concedes that its most effective fix — rewarding diversity directly — assumes groups really are equally capable, and would reduce overall success if they were not. What the study establishes is that these models generate novel group-based rules from noise in sequential decisions, and that capability makes it worse. It does not establish the size of that effect anywhere outside the simulation.
Method. All figures are transcribed from the printed text of the source paper, not read off its plotted figures; where the paper states a value only graphically, this piece omits it and says so. Derived quantities — the 65 per cent gap between the frontier-model mean and the human baseline, the distance from chance in Exhibit 02, and the scale ceiling of 2 — were computed in Node before drafting and re-checked against the source. The stratification index is the paper's own measure: the shortfall in the entropy of each group's spread across the four job classes against a uniform spread, in bits, averaged over groups and runs. It runs from 0 to log₂4 = 2. Exhibit 03 plots reductions, not levels, and is drawn from the refugee resettlement variant rather than the hiring task. The 65 per cent figure reconciles independently with the same comparison as reported from the conference presentation.6 No projection, model or scenario appears in any headline, standfirst, hero stat or exhibit in this piece; every figure shown is a measured experimental result.
Sources. Numbered, highest tier first; each inline citation points here.
  1. T1Wu, A. J.*, Liu, R.*, Bai, X. and Griffiths, T. L., “Large Language Models Develop Novel Social Biases Through Adaptive Exploration”, International Conference on Machine Learning 2026 (oral), Seoul. Preprint at arxiv.org/abs/2511.06148 (v2). *Joint first authors. Retrieved 7 August 2026.
  2. T1Bai, X., Griffiths, T. L. and Fiske, S. T., “Costly exploration produces stereotypes with dimensions of warmth and competence”, Journal of Experimental Psychology: General, 154(2), 347–357, February 2025. The origin of the human baseline and of the hiring paradigm.
  3. T1Parrish, A. et al., “BBQ: A hand-built bias benchmark for question answering”, Findings of the Association for Computational Linguistics: ACL 2022. The single-turn benchmark against which the inversion is measured.
  4. T1Information Commissioner's Office, AI tools in recruitment: audit outcomes report, November 2024. ico.org.uk. Audits conducted August 2023 to May 2024; generative AI out of scope. Retrieved 7 August 2026.
  5. T2Gao, Z., Jiang, W. and Yan, Y., “Can LLMs Hire Fairly? Racial Bias in Resume Screening”, CUHK Business School, June 2026. arxiv.org. Preprint, not yet peer-reviewed; cited for the direction of its headline finding only. Retrieved 7 August 2026.
  6. T3“AI is more likely than humans to form biases when hiring”, MIT Technology Review, 20 July 2026. technologyreview.com. Cited for direct quotation and third-party reaction only. Retrieved 7 August 2026.
Corrections. None. Material corrections will be logged here with date.
Figures to 7 Aug 2026. Noodle News · v1.0 · llm-emergent-hiring-bias.