AI hiring tools are under fire as mid-life women report being filtered out by opaque algorithms. That puts RegTech stocks in the spotlight, because companies that help manage compliance and fairness in automated decisions sit close to the problem and any solutions. This article walks through three RegTech stocks exposed to this news theme and explains how tighter scrutiny on AI recruitment could reshape their risk and opportunity profile.

The stocks covered below are just a first sample of RegTech companies linked to AI hiring and compliance, and the full screen surfaced 19 more businesses with similarly compelling regulatory technology stories that are not included in this article. To go deeper into this theme, identify patterns across the sector and analyze which opportunities best match your risk profile, head straight into the RegTech (Regulatory Technology) Stocks screener.

Appen (ASX:APX)

Overview: Appen is an AI data company that supplies the human labeled data and evaluation services that large tech, government, healthcare and financial firms use to train and test their AI models, from chatbots and autonomous systems to medical and language tools.

Operations: Appen generates about $127.9 million of revenue from Appen Global and $104.1 million from Appen China, with only a small amount recorded as corporate unallocated.

Market Cap: A$385.3 million

Regulators questioning biased AI hiring puts a spotlight on companies like Appen that sit inside the data plumbing of AI systems. Appen supplies multilingual speech and text data, runs human evaluations of models and has worked on Responsible AI initiatives, which positions it squarely in the discussion about fair recruitment algorithms and compliant model behavior. The company is still loss making and relies on a concentrated set of large AI customers. If AI recruitment tools require more transparent, bias tested data rather than quick automation, Appen could shift from being a pressured contractor to a more central participant in the ecosystem.

Appen sits where AI hiring pressure meets demand for cleaner, audited data. To see how that tension shows up in its cash flows, balance sheet and runway, go straight to the Appen financial health report

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Veritone (VERI)

Overview: Veritone is an artificial intelligence company that runs aiWARE, a platform that turns unstructured audio, video and text into searchable, analysable data, and sells software, services and managed solutions to media, government, legal, compliance and energy customers across several countries.

Operations: Veritone generates about $90 million of revenue from its Internet Information Providers segment.

Market Cap: $112 million

Veritone sits directly in the spotlight of the AI hiring debate, because its aiWARE platform and Veritone Hire tools already help large employers and partners like Workday audit recruitment workflows and address bias. The company is unprofitable and reported a Q1 2026 net loss of $19.51 million with further losses guided for the full year, and it has also faced a class action over revenue recognition and increased its share count capacity, which signals dilution risk. At the same time, Veritone is priced on a low P/S multiple, is forecasting double digit revenue growth, and is leaning into compliance driven use cases such as public sector redaction and investigations, an area where regulators are tightening their focus.

Veritone’s low P/S and compliance push on AI hiring may be masking a very different risk reward story. Get the full context in the analysis report for Veritone

Capita (LSE:CPI)

Overview: Capita is a UK based outsourcing and services company that helps governments and large enterprises run complex operations, from public services, pensions and health administration to customer contact centres, education software and AI enabled process automation across regulated industries.

Market Cap: £302.4 million

Capita stands out in the RegTech theme because it already runs compliance heavy HR and recruitment processes for clients and is now embedding AI into those workflows, including tools that can cut candidate screening times from days to seconds while keeping controls in place. The stock trades at a low sales multiple and analysts expect very large earnings improvement over the next few years, yet the company is still loss making, carries elevated funding risk and has seen recent share price volatility. With a £2,000 million defence training contract, new AI orchestration products and intense scrutiny on fair hiring, Capita offers a combination of transformational potential and real execution risk that may warrant closer attention.

Capita’s low sales multiple and significant earnings swing potential hint at a story investors may be underpricing. Read the analyst forecasts for Capita to see how that relates to its funding risk and recent volatility.

Seeking Fresh Alternatives Beyond RegTech

Some opportunities move from quiet to crowded fast. Before these ideas get caught in a wave of momentum and the best entry points start dropping, consider reviewing them early.

• Identify companies where strong cash flows align with solid fundamentals by scanning the curated 9 high quality undervalued stocks before they potentially move out of reach.
• Explore the next phase of AI-related developments with hand picked firms in the 56 AI infrastructure stocks while they are still relatively less followed.
• Look for income opportunities that aim to keep paying even when markets wobble by focusing on the curated 3 dividend fortresses today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.