Factorial
Factorial is a Barcelona-based all-in-one HR, finance and IT platform for small and mid-sized businesses. Its applicant tracking system has optional AI matching, which shows a percentage fit for applicants it recommends interviewing, plus CV summaries, AI-written job posts and AI Calls, where a voice agent phone-screens candidates and gives each a match label that can move them to the next stage automatically.
HireAIScore rates Factorial 46 out of 100 (grade F, Substantial gaps) under rubric v1.0, last reviewed September 25, 2026. Factorial ranks 38 of 77 vendors rated in ATS-integrated AI, against a category average of 47. That score is drawn from 34 evidence items across 7 rubric criteria for Factorial — 27 with a cited source, 7 recording that nothing was located.
§ 01 - Company facts
- Legal name
- Everyday Software, S.L.
- Founded
- 2016
- Headquarters
- ES
- Pricing tier
- Low
- Market side
- Employer-side (AEDT)
- Categories
- ATS-integratedScreening
- Website
- factorialhr.com
These are company details, not findings. They are editable by a verified representative and carry no weight in the score, which is built only from the cited evidence below.
§ 02 - Score breakdown
§ Score breakdown
Category scoring
Weighted contribution shown to the right of each bar.
- 01
Article 11 Technical Documentation
Weight 20%52
+10.4 · category avg 51
- 02
Bias Audit Transparency
Weight 18%25
+4.5 · category avg 41
- 03
FRIA Support
Weight 15%35
+5.3 · category avg 32
- 04
Data Governance Disclosure
Weight 15%57
+8.5 · category avg 54
- 05
Human Oversight Design
Weight 12%58
+7.0 · category avg 57
- 06
Post-Market Monitoring
Weight 12%48
+5.8 · category avg 42
- 07
Customer Documentation
Weight 8%60
+4.8 · category avg 59
Category avg is the mean raw score on that criterion across the 77 ATS-integrated AI vendors in scope of this rubric, this one included.
§ 03 - Strongest · weakest
Strongest category
Customer Documentation
Raw score 60 · contributes 4.8 to total.
60 against a 59 category average
Weakest category
Bias Audit Transparency
Raw score 25 · contributes 4.5 to total.
25 against a 41 category average
§ 04 - Cited evidence
Download diligence record→§ Evidence
Cited per category
Every score is backed by at least one cited piece of evidence.
Evidence ledger
- Items
- 34
- Documentation
- 24
- Audit report
- 1
- Public statement
- 2
- Absence
- 7
- With a source URL
- 27 of 34
- Source hostnames
- 5
- Fewest items
- 4
- Bias Audit Transparency
These figures measure how thoroughly Factorial was reviewed, not how Factorial performed — an absence row, recording that nothing was located, is counted like any other item.
Article 11 Technical Documentation
5 items52
- DocumentationCaptured Sep 25, 2026
The trust center's public AI section says AI use is governed by an internal AI Policy aligned with the EU AI Act (Regulation 2024/1689) and GDPR that expressly bans prohibited practices, including inferring emotions in the workplace. A Responsible AI Statement lists transparency, non-discrimination, privacy by design, human oversight and continuous monitoring.
- DocumentationCaptured Sep 25, 2026
The trust center's AI Feature table names the models behind Factorial's AI (private Azure OpenAI GPT-4/GPT-4o in Sweden, Google Gemini, Cloudflare AI). Its AI Risk Management entry says DPIAs and the 'required assessments' for features that may be high-risk happen before deployment, followed by regular accuracy evaluations.
- DocumentationCaptured Sep 25, 2026
The help center says AI matching compares job requirements and company values with the candidate's application and, where the AI recommends an interview, shows a percentage fit, a summary and highlights, but it does not explain how the percentage is calculated.
- DocumentationCaptured Sep 25, 2026
The AI Calls documentation walks through the whole flow: role criteria, then an AI screening call, then a structured report with a match label, then an optional automatic move to the next stage. It explains what the system does but gives no technical documentation.
https://help.factorialhr.com/en_US/ai-calls-ai-reports/how-ai-calls-and-ai-reports-work-in-the-ats
- AbsenceCaptured Sep 25, 2026
No model or system card, explainability statement, EU AI Act instructions for use, ISO 42001 certificate or copy of the internal AI Policy was found on factorialhr.com, the help center (ATS, AI Calls and One sections) or the trust center, where the AI Overview documents require a 'Get access' request.
Bias Audit Transparency
4 items25
- AbsenceCaptured Sep 25, 2026
No NYC LL 144 bias audit, independent fairness audit or disparate-impact results for AI matching or AI Calls were found on factorialhr.com, in the help center, or in the trust center's AI, Compliance and Reports sections. Warden AI dashboards at trust.warden-ai.com/factorial, /factorialhr and /factorial-hr return 404.
- Public statementCaptured Sep 25, 2026
The trust center's Responsible AI Statement commits to 'non-discrimination and measures to prevent bias', and its AI Risk Management entry says discrimination risks are identified and AI features regularly evaluated, but no method, metrics or results are published.
- Public statementCaptured Sep 25, 2026
The privacy policy (last updated January 2026) says Factorial may process data to 'prevent bias in the artificial intelligence of our Platform' but does not describe any bias testing.
- DocumentationCaptured Sep 25, 2026
The AI Calls good-practice guidance tells recruiters not to use prohibited criteria and to avoid 'sensitive or discriminatory information', which leaves bias control to customer configuration rather than vendor testing.
FRIA Support
5 items35
- DocumentationCaptured Sep 25, 2026
Factorial's EU AI Act blog (published June 2026, updated August 2026) lists deployer duties such as human oversight, monitoring, log retention and a FRIA. The guidance is generic, attributes the FRIA to Article 26 rather than Article 27, and gives the Regulation's number as 2026/1689.
- DocumentationCaptured Sep 25, 2026
A vendor-neutral EU AI Act compliance ebook covering risk classification and deployer obligations is available only after filling in a lead-capture form.
- DocumentationCaptured Sep 25, 2026
A free, partly gated video course on the EU AI Act focuses on Article 4 AI-literacy duties rather than obligations for deployers of high-risk HR systems.
- DocumentationCaptured Sep 25, 2026
The trust center's AI Risk Management entry says Factorial conducts DPIAs and pre-deployment assessments for features that may be high-risk, but these are not published or offered to deployers.
- AbsenceCaptured Sep 25, 2026
No FRIA template, Article 26 instructions for use, or deployer guide specific to AI matching or AI Calls was found in the help center, trust center, product pages or AI pages.
Data Governance Disclosure
5 items57
- DocumentationCaptured Sep 25, 2026
The trust center's AI Training Data and AI Security entries say Factorial uses pre-trained models, does not train or fine-tune on customer data, and contractually bars its providers from doing so. They also say only task-scoped data is sent, providers keep none of it, and AI processing stays in Germany and Sweden.
- Audit reportCaptured Sep 25, 2026
The trust center lists ISO/IEC 27001:2022 and Spain's ENS High certification (both audited by OCA Global) with certificates on the page, a public SOC 3 report, and a SOC 2 Type 2 report from Sensiba LLP available on request.
- DocumentationCaptured Sep 25, 2026
The sub-processor list names Microsoft's Azure OpenAI service (Sweden, under EU Standard Contractual Clauses) as the processor that helps recruiters handle candidate CVs and job postings.
- DocumentationCaptured Sep 25, 2026
The ATS GDPR article documents configurable retention for candidate data, with default erasure after 6 months for applications and 12 months for talent-pool records when erasure is turned on.
- AbsenceCaptured Sep 25, 2026
No list of excluded inputs or protected attributes for AI matching was found. There is also no disclosure of whether AI Calls are recorded or transcribed, and the public sub-processor list names no telephony or speech provider.
Human Oversight Design
5 items58
- DocumentationCaptured Sep 25, 2026
An admin enables AI matching under Settings > Recruitment > Factorial AI. Its output to recruiters is a fit percentage with a summary and highlights, not a decision.
- DocumentationCaptured Sep 25, 2026
Recruiters switch on automatic advancement stage by stage and choose the minimum match label. Candidates below it stay for manual review, and the article states 'No one is rejected automatically.'
https://help.factorialhr.com/en_US/ai-calls-ai-reports/move-candidates-forward-automatically-with-ai
- DocumentationCaptured Sep 25, 2026
Recruiters can test an AI call with 'Run agent' before publishing, and they choose whether a call stops early when a candidate fails a knockout requirement.
- DocumentationCaptured Sep 25, 2026
Terms clause 10.13 makes customers solely responsible for reviewing and validating AI outputs, which do not replace their own review, approval or decision-making.
- AbsenceCaptured Sep 25, 2026
The help center and trust center document no per-jurisdiction controls (for example, turning off AI matching or AI Calls for NYC or Illinois roles) and no explanation of how the fit percentage or match labels are derived.
Post-Market Monitoring
5 items48
- DocumentationCaptured Sep 25, 2026
Factorial runs a public Statuspage with 14 components, including a dedicated 'AI Features' component, and offers email, Slack and RSS subscriptions.
- DocumentationCaptured Sep 25, 2026
The Statuspage incidents API lists 50 incidents from May 2020 to June 2026, with timestamped updates but no postmortems and none tied to AI features.
- DocumentationCaptured Sep 25, 2026
The trust center says Factorial tracks AI inputs, outputs, latency and model behaviour to detect anomalies. It also cites a HackerOne bug bounty and annual third-party penetration tests. None of the monitoring results are published.
- DocumentationCaptured Sep 25, 2026
A dated 'What's New' changelog lists feature releases but records no model or behaviour changes to AI matching or AI Calls.
- AbsenceCaptured Sep 25, 2026
No public dashboard for AI performance or bias, AI model-update changelog, or channel for reporting AI incidents was found on the status page, trust center, help center or product-update pages.
Customer Documentation
5 items60
- DocumentationCaptured Sep 25, 2026
A six-article AI Calls & AI Reports help section includes a launch checklist and 'Privacy and good use' guidance: the AI never decides alone, human review always remains, tell candidates there will be a screening call, and avoid prohibited criteria.
- DocumentationCaptured Sep 25, 2026
The trust center links to the platform DPA in several languages (via PandaDoc) and publishes a Security Policies Pack, the privacy and sub-processor documents, and details of the external DPO.
- DocumentationCaptured Sep 25, 2026
Factorial's public AI page describes its recruiting AI ('Top match recommendations', instant CV summaries, AI-generated job specs) and links to the trust center and help center.
- DocumentationCaptured Sep 25, 2026
The terms of use (amended December 2025) include an 'AI Features and Use' clause covering customer review of outputs, processing by third-party AI providers, and reporting of AI malfunctions.
- AbsenceCaptured Sep 25, 2026
No NYC LL 144, Illinois or Colorado guidance and no candidate AI-notice template was found, and the ATS GDPR article does not mention AI or automated decisions. Factorial's own 'Powered by Factorial' application form shows only a privacy-policy acknowledgment and a talent-pool opt-in.
§ 05 - Editorial notes
Company overview
Factorial (legal entity Everyday Software, S.L.) was founded in Barcelona in 2016. It sells a modular all-in-one HR, finance and IT platform to small and mid-sized businesses and says more than 16,000 companies use it. List pricing starts at $8 per user per month, and its press page links to June 2026 Bloomberg coverage of a raise at a $2.5 billion valuation. Its applicant tracking system offers 'AI matching', which an admin turns on in the recruitment settings. It compares the job requirements and company values with a candidate's CV and application answers. For applicants the AI recommends interviewing, it shows a percentage fit, a short summary and highlights. A newer AI Calls & AI Reports feature has an AI voice agent call new applicants and evaluate the conversation against criteria the recruiter sets: competencies, 'hard facts' that work as knockout requirements, and signals. The agent then assigns a match label from 'Potential match' to 'Excellent match', which can move a candidate to the next stage automatically. Factorial says no candidate is ever rejected automatically. According to its trust center, the AI features run on private deployments of Azure OpenAI (GPT-4 and GPT-4o, hosted in Sweden), Google Gemini and Cloudflare AI.
Regulatory exposure
Exposure is high. Software that ranks applicants, recommends whom to interview and screens candidates by phone falls under EU AI Act Annex III point 4, and Factorial is an EU-headquartered provider. The Digital AI Omnibus moved the Annex III obligations to 2 December 2027 but did not change them. Factorial's trust center says an internal AI Policy aligned with the Act bans prohibited practices, including inferring emotions in the workplace. It also says Factorial runs 'the required assessments' before deploying features that may qualify as high-risk. However, Factorial has not publicly classified AI matching or AI Calls as high-risk, and it has not published instructions for use or technical documentation. Its own EU AI Act blog gives the Regulation's number as 2026/1689 instead of 2024/1689 and places the FRIA duty in Article 26 instead of Article 27. Factorial also sells in the US, with a Miami hub. There, AI matching and AI Calls could be automated employment decision tools (AEDTs) under NYC Local Law 144, yet Factorial publishes no bias audit and no guidance on notifying candidates. Illinois HB 3773 has required notice when AI is used in employment decisions since 1 January 2026, and Colorado's SB 26-189 adds disclosure duties from 1 January 2027. In California, employers must keep automated-decision records for four years, so they would need to extend Factorial's optional auto-erasure defaults, which delete applications after six months. Telling candidates about AI is left to customers. The AI matching article does not mention it, and the AI Calls guidance only says to 'explain there will be a screening call'.
Path to a higher score
The biggest gain would come from independent bias testing: commissioning and publishing an audit of AI matching and AI Calls, for example from Warden AI, BABL AI or Holistic AI, including an NYC LL 144 audit summary for US customers. Technical documentation would improve if Factorial published its internal AI Policy, EU AI Act instructions for use, and a model or system card explaining how the fit percentage and match labels are produced and which inputs are excluded. ISO 42001 certification would strengthen data governance. FRIA support and customer documentation would improve with an Article 26/27 deployer guide that includes a FRIA template, candidate-notice templates for the EU, NYC, Illinois and Colorado, and an AI-use notice built into application forms. Correcting the errors in its EU AI Act blog would also help. Oversight and post-market monitoring would benefit from naming the telephony and speech providers behind AI Calls and stating what is recorded, adding per-jurisdiction controls and an AI model-update changelog, and publishing incident postmortems or AI monitoring results.
§ Regulatory frame
What applies to ats-integrated ai.
Ranking features are inside EU AI Act Annex III §4 (high-risk) and inside NYC Local Law 144 when they affect NYC-based candidates. Customers should treat the AI surface as a distinct deployer-FRIA scope from the rest of the ATS.
§ Compare
Build any comparison→Factorial against its nearest-scoring peers.
In ATS-integrated AI.
§ Others rated in ATS-integrated AI
All ats-integrated vendors→Ranked 38 of 77 by weighted total under rubric v1.0. The ordering is arithmetic on the rubric and carries no view on which tool suits a given hiring process.
- 35Teamtailor47F
- 36HiBob46F
- 37Brainner46F
- 38FactorialThis profile46F
- 39ClearCo (ClearCompany)46F
- 40Talkpush46F
Conflicts of interest
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Casework has no commercial relationship with this vendor.