In a guest column, these lawyers explain the pros and cons of using AI for hiring. Photo via Getty Images

Workplace automation has entered the human resource department. Companies rely increasingly on artificial intelligence to source, interview, and hire job applicants. These AI tools are marketed to save time, improve the quality of a workforce, and eliminate unlawful hiring biases. But is AI incapable of hiring discrimination? Can a company escape liability for discriminatory hiring because, "the computer did it?"

Ultimately, whether AI is a solution or a landmine depends on how carefully companies implement the technology. AI is not immune from discrimination and federal law holds companies accountable for their hiring decisions, even if those decisions were made in a black server cabinet. The technology can mitigate bias, but only if used properly and monitored closely.

Available AI tools

The landscape of AI technology is continually growing and covers all portions of the hiring process — recruiting, interviewing, selection, and onboarding. Some companies use automated candidate sourcing technology to search social media profiles to determine which job postings should be advertised to particular candidates. Others use complex algorithms to determine which candidates' resumes best match the requirements of open positions. And some employers use video interview software to analyze facial expressions, body language, and tone to assess whether a candidate exhibits preferred traits.

Federal anti-discrimination law

Although AI tools likely have no intent to unlawfully discriminate, that does not absolve them from liability. This is because the law contemplates both intentional discrimination (disparate treatment) as well as unintentional discrimination (disparate impact). The larger risk for AI lies with disparate impact claims. In such lawsuits, intent is irrelevant. The question is whether a facially neutral policy or practice (e.g., use of an AI tool) has a disparate impact on a particular protected group, such as on one's race, color, national origin, gender, or religion.

The Equal Employment Opportunity Commission, the federal agency in charge of enforcing workplace anti-discrimination laws, has demonstrated an interest in AI and has indicated that such technology is not an excuse for discriminatory impacts.

Discrimination associated with AI tools

The diversity of AI tools means that each type of technology presents unique potential for discrimination. One common thread, however, is the potential for input data to create a discriminatory impact. Many algorithms rely on a set of inputs to understand search parameters. For example, a resume screening tool is often set up by uploading sample resumes of high-performing employees. If those resumes favor a particular race or gender, and the tool is instructed to find comparable resumes, then the technology will likely reinforce the existing homogeneity.

Some examples are less obvious. Sample resumes may include employees from certain zip codes that are home to predominately one race or color. An AI tool may favor those zip codes, disfavoring applicants from other zip codes of different racial composition. Older candidates may be disfavored by an algorithm's preference for ".edu" email addresses. In short, if a workforce is largely comprised of one race or one gender, having the tool rely on past hiring decisions could negatively impact applicants of another race or gender.

Steps to mitigate risk

There are a handful of steps that employers can take to use these technologies and remain compliant with anti-discrimination laws.

First, companies should demand that AI vendors disclose as much as possible about how their products work. Vendors may be reticent to disclose details about proprietary information, but employers will ultimately be responsible for discriminatory impacts. Thus, as part of contract negotiations, a company should consider seeking indemnification from the vendor for discrimination claims.

Second, companies should consider auditing the tool to ensure it does not yield a disparate impact on protected individuals. Along the same lines, companies should be careful in selecting input data. If the inputs reflect a diverse workforce, a properly functioning algorithm should, in theory, replicate that diversity.

Third, employers should stay abreast of developments in the law. This is an emerging field and state legislators have taken notice. Illinois recently passed regulation governing the use of AI in the workplace and other states, including New York, have introduced similar bills.

AI can solve many hiring challenges and help cultivate a more diverse and qualified workforce. But the tools are often only as unbiased as the creators and users of that technology. Careful implementation will ensure AI becomes a discrimination solution — not a landmine.

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Kevin White is a partner and Dan Butler is an associate with Hunton Andrews Kurth LLP, which has an office in Houston.

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Venus Aerospace closes $91 million Series B to scale hypersonic engine

flight funding

Houston-based Venus Aerospace has closed a $91 million Series B round and plans to scale the production of its hypersonic engine.

The round was led by Houston-based Mercury Fund with participation from Lockheed Martin Ventures, MESH, PEAK6, Draper Associates, Starboard Star Venture Capital, Green Sands Equity and other investors, according to a news release.

The investment comes about a year after Venus completed the first U.S. flight test of its high-thrust rotating detonation rocket engine (RDRE). The engine is expected to enable vehicles to travel four to six times the speed of sound from a conventional runway and is about 15 percent more efficient than traditional alternatives, according to the company.

Venus Aerospace says the latest round of funding will allow it to move the RDRE from demonstration to deployment and meet customer requirements for the near-term defense and space industries. The company says that the reusable RDRE is designed with a "common propulsion architecture" that can work for multiple industries and mission types.

“This financing marks an important step in moving Venus from breakthrough demonstration to scaled capability,” Sassie Duggleby, co-founder and CEO, said in the news release. “Our customers need propulsion systems that go farther, can be produced reliably and are built on supply chains they can trust. We are advancing that capability with American engineering and manufacturing talent to strengthen U.S. defense, expand space access and support the future of high-speed flight.”

Venus Aerospace raised a $20 million Series A in 2022, led by Wyoming-based Prime Movers Lab. At the time, the company said it would put the funding toward three main technologies: a next-generation rocket engine, aircraft shape and leading-edge cooling system.

The company also picked up an investment from Lockheed Martin Ventures, the investment arm of aerospace and defense contractor Lockheed Martin, in November 2025—in addition to funding from other investors over the years.

“Since our initial investment, Venus has progressed very quickly in its technology development," Chris Moran, vice president and general manager of Lockheed Martin Ventures, added in the release. "Our reinvestment in Venus recognizes Venus’ accomplishments to date and focus on speed to manufacture, cost management and reduction of supply chain constraints. Venus is working effectively to position its propulsion system for the production scale required by defense programs.”

"Venus is exactly the kind of company Houston capital should be backing," Blair Garrou, co-founder and managing partner at Mercury Fund, added in the release. "It combines multiple frontier technologies, domestic manufacturing and clear commercial and national security relevance. We believe this team is positioned to lead an important new chapter in defense and space, and we are proud to support a company building breakthrough technology here in Texas."

Venus Aerospace and Houston clean tech startup Vaulted Deep were named to the World Economic Forum's Technology Pioneers community earlier this summer. Read more here.

Intuitive Machines lands $148M as part of NASA Moon Base funding

to the moon

Houston-based Intuitive Machines has been awarded $148.3 million to deliver its Nova-C lander to the moon by 2028. The funding is part of $600 million that NASA recently awarded to three companies as part of the agency’s Moon Base Program.

The contracts aim to support sustained human presence and commercial operations on the Moon. Austin-based Firefly Aerospace was awarded $144.2 million by NASA for one mission and Pittsburgh-based Astrobotic netted $297.9 million for two lunar landings. Intuitive Machine's award is the company's sixth task order under NASA's Commercial Lunar Payload Services (CLPS) program.

“We’re building a proving ground for Moon Base operations,” Ryan Stephan, NASA’s Moon Base acting director of cargo landers, said in a news release. “Accelerating our Moon mission ordering cadence and launch opportunities enable us to move quickly to learn, iterate, and improve.”

Under the latest task order, Intuitie Machines will deliver three scientific and operational payloads to the moon, which include a:

  • Linear Energy Transfer Spectrometer (LETS) radiation monitor to gather critical environmental safety data
  • Advanced stereo cameras to analyze surface-plume interactions (SCALPSS)
  • Laser retroreflector array (LRA) for precise cislunar positioning

The funding breakdown includes a $68.6 million base contract and a $79.7 million performance incentive for Intuitive Machines.

The company says the funding will allow it to create a standardized and repeatable "lunar utility pipeline" for delivering cargo to the moon.

"We are shifting the paradigm from custom aerospace engineering to commercial mass production of lunar infrastructure," Steve Altemus, CEO of Intuitive Machines, said in a separate news release. "Our flight-proven Nova-C platform allows us to build, test, and deploy multiple landers in parallel using Industry 4.0-powered manufacturing. This contract directly advances our core mission to provide persistent, reliable, and commercial baseline of transport, connectivity, and operations that allows our customers to stay longer and achieve more on the Moon."

NASA also shared that it is exploring plans to send PROMISE, a rover based on the Mars Perseverance and Curiosity rovers, to the moon and it plans to seek proposals for additional lunar lander missions, technology demonstrations, a communications and navigation satellite network, and new science payloads to support its lunar outpost. NASA is developing its Moon Base near the lunar South Pole. The agency expects it to come to fruition sometime after 2032.

Intuitive Machines had received its last CLPS award for $180.4 million in March 2026. It will be the first mission to utilize the company's larger cargo lunar lander, Nova-D. The company was also recently awarded a $1 million grant from Maryland Gov. Wes Moore to expand its robotics operations in the state.

UT team develops wearable technology for atmospheric water harvesting

In The Air

Engineers at the University of Texas at Austin have developed a prototype jacket that harvests clean drinking water directly from the atmosphere, and it works even in the driest desert conditions.

The research, published in Science Advances, marks the latest milestone in nearly a decade of work by materials scientist and chair professor Guihua Yu and his team at the Cockrell School of Engineering's Walker Department of Mechanical Engineering and Texas Materials Institute. The wearable technology marks a significant leap: instead of a bulky, stationary machine, this jacket does the work.

Photo courtesy of UT Austin

"We have been working on atmospheric water harvesting technology for a number of years," Yu says. "This current version is even more wearable. We're transitioning from conventional, more stationary water harvesting to something truly portable and personal."

Yu's lab first published work on hydrogel-based water harvesting around 2019, and the jacket is the latest evolution of that platform, now called AirGel. Last year, the broader AirGel invention won the top prize in the graduate category of the National Collegiate Inventors Competition.

The jacket is woven with specially engineered hydrogel fibers; ultra-porous materials that attract and absorb moisture from the surrounding air much like a household desiccant. Unlike a desiccant, the material doesn't require intense heat to release that water. The hydrogel is thermally responsive, meaning a modest rise in temperature — even from mild solar heating — is enough to release the water it has captured.

Condenser test in AustinSo, somebody would be wearing the jacket, or perhaps carrying this gel-like textile as a blanket, as it passively absorbs moisture from the air. Then they would detach the textile panels and place them into a small, portable collector unit; essentially a compact heater. The water evaporates out of the textile, condenses inside the collector, and drips out as clean, drinkable water.

"It immediately becomes drinkable because it already goes through the distillation process," Yu explains.

In trials, the jacket produced between 400 and 900 milliliters of water per day depending on humidity, or roughly 14-30 ounces, nearly a quart, depending on the air's humidity. With one kilogram of the textile, the researchers found they could generate approximately 3.7-4 liters of water in arid conditions, and potentially double that in humid ones. So far, the team has tried the jacket out in very dry, semi-dry, and humid areas, and the jacket was able to pull water from each climate.

Lead researcher Chuxin Lei, a postdoctoral researcher on Yu's team and co-author on the paper, says the goal was to rethink who this technology could serve.

Portable bag contents

"Many current [atmospheric water harvesting] systems are still built as rigid or stationary platforms, making them less suitable for people who are moving, working outdoors, or operating in some remote environment. This lead us to ask whether we could build a water harvesting system that could become more like clothing — light, wearable, flexible, and naturally suited for personal use," Lei says.

The potential applications are wide-ranging. Yu's team has previously worked with the Department of Defense on water solutions for soldiers, where water logistics can be dangerous and costly. The technology could also serve hikers, emergency responders, disaster relief workers, and agricultural and field workers. Anyone who needs clean water on the go and far from infrastructure.

The team also sees a potential future where the technology complements large-scale centralized water systems rather than replacing them.

"Our solution cannot be a universal solution for all," Yu acknowledges. "But I think it's an extremely important alternative."

For now, the jacket is still a laboratory prototype, but Yu and Lei are optimistic. With the right industry partnerships, they say, the technology could realistically reach commercial scale within three to five years.

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This article originally appeared on CultureMap.com, written by Natalie Grigson.