The Rise of AI in Recruiting and Hiring Processes

Unlocking Efficiency

Artificial Intelligence (AI) is rapidly becoming an integral part of the digital world. Its applications cut across various industries, from intricate data analysis to frontline customer service. AI is increasingly being added to consumer software products to enhance efficiency and productivity. Despite being in its early stages, AI is already being used across all sectors. 

In a recent study, the 2023 AI Index Annual Report discovered all industries are now employing AI in at least one business function or unit. This demonstrates a tremendous surge in AI adoption, with the number of companies embracing AI technology in 2022 more than doubling that of 2017. Even the U.S. Department of Defense has acknowledged the importance of AI, unveiling its 2023 Data, Analytics, and AI Adoption Strategy to “unify previous strategic guidance to scale advanced capabilities across the enterprise”. The growing adoption rates of AI technology underscore its potential for optimizing and advancing processes across industries. 

Artificial Intelligence is being harnessed in an array of business applications, some of the most popular include: cybersecurity, customer relationship management, inventory management, accounting, business process automation, and job candidate recruitment. Modern AI-focused recruiting tools can do more than candidate resume screening algorithms which have been used in applicant tracking systems for more than two decades.  

How AI is Used in Recruiting 

Recruiting high-quality candidates is a time-consuming process. It involves identifying potential candidates, analyzing resumes to find the right match for open positions, and communicating directly with candidates throughout the process. 

Artificial Intelligence tools are increasingly used at multiple stages of the recruitment process. Common AI uses include job description writing, resume screening, candidate queries, candidate assessment, interview scheduling, and onboarding. Recruiting with the help of AI gives recruiters more time by handling repetitive tasks and allowing them to focus on more important tasks. AI’s primary recruiting tasks revolve around matching candidates to open positions by analyzing multiple data points. 

Generative AI 

Generative Artificial Intelligence, like ChatGPT, has been used to create job descriptions and match candidates to job openings. Generative AI can also be used to identify passive candidates. 

Intelligent Chatbots 

Intelligent chatbots that understand text and voice input are used for candidate engagement. Chatbots often answer frequently asked questions. These intelligent chatbots can also help move newly hired employees through the onboarding process. 

Machine Learning, Predictive Analytics, Facial Recognition and Natural Language Processing 

Machine learning is used to identify patterns to determine how well candidates fit with a particular job based on a large dataset of resumes. Predictive Analytics can be used to identify top candidates based on past performance.  

Candidate video interviews can be analyzed with natural language processing and facial recognition algorithms. AI video analysis tools examine candidate communication skills and other traits by analyzing body language, and speech patterns.

How Effective are AI-based Recruiting Strategies? 

Time savings and process improvements are meaningless if they don’t yield beneficial results for candidates or companies deploying these solutions. The effectiveness of AI-based recruiting hinges on several factors. For instance, when using predictive analytics to analyze data, the quality of the data used to train the algorithms is crucial for achieving good results. Poor quality data can lead to inadequate job matches for candidates, resulting in a hiring mismatch for the company and the new hire. Similar problems can occur with chatbots, where the quality of responses and program design determines their effectiveness. An improperly designed chatbot providing unhelpful responses is not effective at all. While companies are still finding the right mix of human and AI-based recruiting, the effectiveness of these blended recruiting strategies are likely to be measured in time saved. 

In 2016, consumer products brand Unilever began integrating artificial intelligence into its recruiting and hiring processes. The company recruits around 30,000 candidates and reviews about 1.8 million job applications worldwide each year. Unilever deployed a range of bespoke artificial intelligence tools to help surface the best candidates from very large numbers of job applicants. Applicants worked through a series of games to assess logic, aptitude, reasoning, and willingness to take risks. Machine learning algorithms sifted through the game results and compared them to successful employee profiles. The final step before in-person assessments was a video interview. Applicant videos were analyzed using video analytics, machine learning, and natural language processing. This AI-based candidate screening process was estimated to save around 70,000 hours in resume review and interview hours, ultimately shortening the time it takes to find and hire qualified employees.

What Americans think of AI in Hiring

Public perception of new technology can influence its adoption rate. Of course, perception and real-world usage vary significantly. New technologies are often deployed before the public fully understands their functionality, and artificial intelligence is no exception. For over a decade, the American public has been exposed to news about the potential capabilities of artificial intelligence. Americans’ perceptions of AI differ depending on its usage and integration into daily interactions. 

Americans are generally aware of Artificial Intelligence they encounter in everyday life. Product recommendations and chatbots were among the most recognizable use of AI in a recent Pew Research survey. Among the respondents, 27% believed they interact with AI several times a day or more. Respondents also correctly identified technologies which rely on artificial intelligence for data analysis such as fitness trackers and smart digital thermostats. Among those surveyed, only 15% say they’re more excited than concerned about artificial intelligence usage in everyday life. In total, 38% were more concerned than excited about AI prevalence.  

When asked about AI use in hiring and employment relations, Americans are skeptical about its benefits. A 2023 study found 81% of respondents believed AI-enabled employee surveillance and performance tracking would lead to employer overreach where employees feel inappropriately watched. Several large companies have been accused of using AI to select employees for firing. The accused have denied the allegations, yet the sentiment among the public remains. Artificial intelligence should not have the final word in any hiring or firing decision. 

Ethics and AI in Hiring

Ethical questions arise as more advanced AI tools are used in talent acquisition and recruiting. Highly qualified candidates can be overlooked, even with advanced candidate matching algorithms or other tools. Candidate matching algorithms require large amounts of candidate personal data which can be compromised by cyber criminals. Looking for work online means candidates can also become direct targets. Scammers posing as recruiters are already posting fake AI-generated LinkedIn job openings in an effort to gain candidates’ personal information and banking details.  

Data privacy and security should not be reserved for internal company assets. Candidates should be aware of applicant data collection and usage before applying for jobs which utilize AI-powered candidate matching or screening algorithms. Companies and their partners have an obligation to secure candidate data collected.  

Predictions for the Future of AI in Hiring

Artificial Intelligence in hiring will impact the modern hiring process in many ways as new tools and strategies evolve. The adoption of artificial intelligence for hiring is expected to increase throughout 2024 with an emphasis on deploying candidate matching algorithms and generative AI solutions. Employers are keen to shorten the time it takes to get through the hiring process while also finding the best qualified candidates. Rather than fully replacing humans with AI, companies are looking to lessen time-consuming administrative tasks to give humans a higher capacity to focus on other more important tasks. 

Wrap Up

Artificial intelligence in recruiting has many positive benefits in terms of time savings and efficiency. These benefits must be weighed against the potential ethical issues that can arise when these tools are used with minimal human oversight. Fully automated resume review may not be appropriate considering the possibilities these tools can overlook highly qualified candidates that don’t exactly match algorithmic rules. When candidates know how their data might be used, they can make an informed decision about whether to apply for open positions.  

At Advance Recruitment, we understand the power of AI in revolutionizing hiring processes. With our outbound multi-channel strategy, we target suitable candidates who are not only qualified but also aligned with your company’s values and culture. Let us streamline your recruitment journey and connect you with the talent that will truly elevate your team. Contact Advance Recruitment today to begin your hiring transformation.

If you’d like to learn more about how we can help you adapt to the evolving recruitment landscape and ramp up your efforts, please contact us today.

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