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Finding the best candidate for any position has become increasingly challenging. With the proliferation of job boards and online search, hiring has become a global initiative, with hundreds of résumés pouring in for every job. Smart recruiters are using new technologies like AI to simplify talent search and identify better candidates, but recruiters are finding that AI has limitations.
While AI streamlines recruiting processes such as talent search, candidate screening and résumé analysis, it is a tool, not a replacement for recruiter insight. The real value of using AI for recruiting comes when you combine AI and human judgment.
Using AI to Automate Hiring Tasks
There is no question that AI can remove recruiting bottlenecks. For example, AI can be trained for candidate search, scanning job boards and social networks to identify active and passive candidates. Algorithms can analyze résumés, scanning for specific qualifications and keywords. Virtual interviews powered by AI chatbots can help prequalify candidates.
AI can dramatically reduce time-to-hire and cut costs. According to the Society for Human Resource Management (SHRM), the cost of executive hiring can be three to four times the candidate’s salary, while the time to hire averages 36 days or more. AI saves time and money by automating routine recruiting tasks.
For example, AI can automate outreach and candidate communications through email and chatbots, saving the time needed for follow-up. AI can help draft job descriptions. AI can cut résumé screening by 75% and interview scheduling time by 80%. AI-powered candidate evaluations save recruiter time, increase hiring accuracy by 46% and improve overall efficiency by 20%.
The bigger question is whether we want AI to eliminate humans from the recruiting process, especially since the goal is to match people to open positions.
Limitations of AI Models
One of the biggest challenges with machine learning models is eliminating bias. If the data used to train AI has an inherent bias, such as underrepresented groups or mislabeled training data, that bias will proliferate throughout AI results. For example, relying too heavily on past success profiles or specific keywords will screen out qualified candidates.
Since AI increasingly relies on personal data, there are concerns about data privacy and regulatory compliance. Handling of personal data must comply with regulations such as the California Consumer Privacy Act (CCPA) and the EU’s General Data Protection Regulation (GDPR).
Applying Generative AI to Recruiting
Generative AI uses machine learning to identify patterns and create new content, such as text, images and video, based on large amounts of training data. GenAI applications are increasingly being used for recruiting. GenAI can write job descriptions, scour job boards and search social media for potential candidates. It can also screen résumés to identify patterns related to candidate qualifications.
AI-generated interactions with candidates can use GenAI for preliminary screening and interview preparation. For example, chatbots are increasingly used for candidate engagement and interview preparation. What GenAI cannot do is assess a candidate for interpersonal skills or cultural fit.
The Need for Human-in-the-Loop
While AI can be valuable for preliminary candidate screening, humans must still be part of the interview process. Hiring managers are uniquely qualified to evaluate candidates for interpersonal skills and cultural fit through face-to-face interviews. There are nuances in human interaction that AI cannot process.
Human recruiters must also monitor recruiting processes to watch for bias and compliance during the hiring process. There is no substitution for human oversight when attending to crucial details. Recruiters need to view AI as a tool only. Trained professionals must still fine-tune AI processes to ensure fair and effective hiring practices.
There is no doubt that AI is going to revolutionize recruiting, but it’s essential to keep AI’s limitations in mind. As AI technology matures, you will see new AI applications fill many of these gaps, so staff recruiting will require little human interaction. For now, AI should be viewed as an efficiency tool rather than a replacement for human recruiters.
About Staffing Industry analysts (SIA)
SIA is the global research and advisory firm focused on staffing and workforce solutions. Their proprietary research covers all categories of employed and non-employed work including temporary staffing, independent contracting and other types of contingent labor. SIA’s independent and objective analysis provides insights into the services and suppliers operating in the workforce solutions ecosystem, including staffing firms, managed service providers, recruitment process outsourcers, payrolling/compliance firms and talent acquisition technology specialists such as vendor management systems, online staffing platforms, crowdsourcing and online work services. We also provide training and accreditation with our unique Certified Contingent Workforce Professional (CCWP) program.