Artificial intelligence (AI) is no longer a fanciful aspiration, but a much-used tool incorporated into the recruitment function by companies of all sizes. This article will explore how AI software is transforming the hiring process at every stage.
Defining AI in Recruitment
In general, artificial intelligence (AI) is the ability of a machine to perform tasks that once required human intervention. In the case of recruiting, AI tools can automate every step of the workflow resulting in significant cost and time savings. This has led to its rapid adoption by employers across every sector. According to The Business Research Company, the use of AI as a hiring tool is predicted to grow to $1.35 Billion in 2025 at a compound annual growth rate (CAGR) of 18.9%, and $2.67 billion in 2029 at a CAGR of 18.6%. These statistics point to one conclusion: The future is now in terms of AI in recruiting.
Let’s take a closer look at how AI impacts the recruiting process, starting with an overview of its benefits.
5 Benefits of AI in Recruitment
- Reduced costs. Artificial Intelligence significantly lowers costs by streamlining the recruitment workflow and automating tasks at every stage.
- Talent Sourcing. AI sourcing software expands the talent pool by searching various online databases for candidates that best match the job requirements. This eliminates the need for recruiters to perform repetitive manual tasks, such as perusing resumes of candidate who don’t match the requirements,
- Fosters Diversity and Inclusion. AI writing tools enable job postings to reach a larger audience by creating bias free job descriptions that motivate applications from a diverse applicant pool.
- Predictive Hiring. AI fosters predictive hiring by analyzing historical data and predicting which candidates are most likely to excel in each role. This leads to improved hiring decisions and increases employee retention.
- Improved Candidate Communication. AI tools foster improved communication with candidates via such tools as chatbots, automated workflows, CRM tools, writing assistants, and scripted video interviews.
AI Recruiting Categories:
There are several recruiting processes where AI-powered tools may be implemented:
- Applicant Tracking Systems (ATS)
- Candidate sourcing tools
- Resume screening tools
- Video interviews tools and Chatbots
- Writing and optimization tools
The application of AI at each stage of recruitment
- Job Descriptions. AI writing tools analyze the verbiage of job descriptions to detect biases. For example, overuse of masculine or feminine pronouns, or language that suggests the post is targeting a specific demographic. This situation is less likely to occur provided the algorithms on which the software is based are periodically reviewed for bias. If the historical data used to “train” the algorithm is not representative of wider groups, the algorithm will base its decision on skewed data and deliver biased recommendations. For example, if an algorithm is trained on resumes that skew toward female candidates, it may “favor” female candidates in the future.
- Candidate Sourcing. AI-powered sourcing tools use algorithms based on the job description to scan large amounts of datasets found on job boards, social media channels, as well as internal company databases to identify potential candidates. By using such methods as APIs and web scraping, AI software extracts relevant information such as skills, experience, education, job titles, contact details, and other publicly available data, creating a vast candidate pool.
- Resume Filtering: AI-powered resume screening tools utilize Natural Language Processing (NLP) and AI algorithms to analyze resumes. This process goes beyond keyword matching to understanding the context of the information provided in the resume. Artificial Intelligence software screens resumes and job applications by categorizing the documents into different sections, typically experience, qualifications, education, etc. and provides a percent match in each area.
One caveat here: Because AI software searches for specific keywords noted in the job description, it may miss relevant skills or competencies that a candidate may possess but omitted from their resume. This is why AI can never fully replace the human touch.
- Candidate messaging: Candidate Relations Management (CRM) tools, typically embedded within an AI-powered ATS helps employers guide and nurture ongoing relationships with the talent pool. For example, AI-powered CRMs enable recruiters to create personalized automated messages to candidates based on their stage in the hiring process.
- Screening with Chatbots. Chatbots have been widely incorporated into the recruitment processes of many employers. Chatbots create interview questions typically by “training” on job descriptions. Recruiters input the job description into the software and direct that it generate questions regarding experience, skills, and education. Further refinement can be made with “prompts” where the recruiter asks the software to review the responsibilities and qualifications sections of the resume and create questions to assess problem solving ability, and culture fit.
- Interview Scheduling. Artificial intelligence can streamline interview scheduling by integrating recruiters’ calendars and availability, allowing candidates to self-schedule at a time that suits all attendees. Most AI powered ATS software has features that allow recruiters to link their calendars, as well as send intermittent appointment reminders to reduce the incidence of “no-shows.”
Future of AI in recruitment
The future of AI in recruitment will be to ensure that successful recruiting is a data driven process. As AI continues to evolve, data can be analyzed at each step of the hiring process to redefine how organizations attract, evaluate, and retain highly qualified candidates. For example, using data for predictive hiring allows the hiring team to analyze at which point in the hiring funnel candidates are dropping out (e.g., sourcing, assessment, communication, interviews, or offer) and adjust the process to eliminate this recidivism. For example, if the AI software detects frequent candidate withdrawal during the assessment stage, it may revise instructions to include a shorter assessment.
How AI is Redefining Hiring Decisions Beyond Resumes
While virtual interviews have already introduced time efficiency to the hiring process, AI-powered software is being developed to provide deeper insights beyond basic scripts. Updated software will be able to analyze the candidate’s tone of voice, word choice and facial expressions to provide a deeper understanding of the candidates’ comfort level, confidence, sincerity, and alignment with company culture. This will enable recruiters to make more informed decisions regarding the suitability of different candidates across over a range of both “hard” and “soft” criteria.
AI software will foster end-to-end integration among diverse HR tools, such as Applicant tracking Systems, HRIS systems, and workforce analytics tools. Data from these disparate systems will be unified to assist recruiters with such tasks as researching labor market demographics and region-based compensation bands, as well hiring funnel optimization.
With the increasing sophistication of AI recruiting software, the question for employers is not should we use it? Rather, it’s how do we remain competitive in the talent market without it?
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