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null AI in recruitment: What is the impact?

AI IN RECRUITMENT: WHAT IS THE IMPACT?

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This question of artificial intelligence (AI) in recruitment is a hot topic. Like anything surrounding AI, major technical changes are coming thick and fast across all industries.
 
During our recent webinar on ‘Key Trends Shaping Workforce Strategies in the IT and Technology Sector' the audience asked: ‘How will AI impact the recruitment process?’. 
 
It's a complex topic, so we're taking the time to dig deeper and discuss artificial intelligence in recruitment. We’ll explore how AI is transforming hiring processes and what new technology means for the future.
 

The current capabilities of AI in recruitment

In today’s world, AI in recruitment can perform various tasks that can help improve the recruitment process. As one of our experts, James Milligan, explained during the webinar, the capabilities of AI recruiting software are impressive:
 
Automated transcription and job specification creation: AI can transcribe conversations between recruiters and clients to create detailed job specifications. This transcription process allows recruiters to accurately capture the intricate details of the client's requirements, saving time.
 
Profile matching and database searching: AI can search considerable databases to find candidate profiles that match the job description. This process is significantly faster and more thorough than manual searches.
 
Automated communication: AI can send out WhatsApp messages or emails to potential candidates with the relevant skill sets. Recruiters can use automated communication to schedule interviews and send confirmations to candidates.
 
Shortlisting: implementing AI can shortlist candidates who have expressed interest and match the job requirements. Then, recruiters can send the shortlist to the client for review on the spot.
 
These tasks highlight the significant potential for AI in recruiting. Ultimately, AI can enhance the hiring process by reducing the time spent on administrative tasks, allowing recruiters to focus on the more people-centric tasks including candidate engagement and interview prep.
 

Challenges and ethical considerations of using AI in recruitment

While there are benefits to using AI in recruiting, it’s critical to consider the limitations and ethical considerations. Here’s how these factors can come into play when using AI recruiting software:
 
Algorithm bias: AI algorithms depend entirely on the quality of their training data. Essentially, the AI will reflect biases from the training data in its decisions. These biases could significantly impact hiring practices, leading to unfair outcomes, reduced diversity and the dismissal of qualified candidates.
 
Data privacy: Handling candidates' personal data through AI systems raises significant privacy concerns. AI systems must comply with data protection laws to ensure the safety and privacy of candidates' personal data.
 
The human touch: Don’t forget the human element in recruitment. While AI can handle many tasks, recruiters need to deploy their unique capabilities, evaluating whether a candidate is the right fit for a company culture, for example. The human touch is especially valuable for passive candidates (those who aren’t actively searching for roles). Although not searching, recruiters could persuade these candidates with the right opportunity. A personal touch and conversation with these candidates could become the difference between successfully hiring them or not.
 
Transparency and accountability: A challenge with AI in recruitment is the lack of transparency in decision-making processes. This lack of transparency can lead to accountability issues, making it difficult to explain to candidates why you didn’t select them for the role. To address this, companies need to design AI systems with transparency in mind. Implementing mechanisms to audit and explain AI decisions is essential. This approach will build trust with candidates and ensure fair recruitment practices.
 

The future of AI in recruitment

Looking to the future, there’s plenty to be optimistic about in AI and recruitment. Over the next five to seven years, we expect to see several key trends.
 
Enhanced candidate experience: AI has the potential to make the recruitment process more efficient in the long term. AI will only improve the experience for candidates and recruiters alike. Faster response times and more personalised interactions can make candidates feel valued and engaged.
 
Quicker hiring processes: Automating administrative tasks helps recruiters reduce the time it takes to move through the recruitment cycle. This efficiency allows recruiters and companies to make faster hiring decisions. Additionally, automating tasks reduces the risk of losing top talent to competitors.
 
Stronger candidate-client matching capabilities: With AI handling admin tasks, recruiters can spend more time engaging with candidates and clients. This increased focus can lead to deeper relationships and a better understanding of both parties' needs.
 

How can you leverage AI in recruitment? 

If you’re in recruitment or people management and are curious about implementing AI, both now and in the future, here are some examples. These examples illustrate how to effectively integrate AI into the recruitment process:
 
AI-powered screening: AI can quickly screen candidate CVs and cover letters. The system then identifies the most relevant candidates based on predetermined criteria. Initially, recruiters face less burden and can consider only the most suitable candidates. These candidates then move to the further stages of the interview process.
 
Chatbots for candidate engagement: AI-driven chatbots have the ability to handle initial candidate queries. These chatbots can schedule interviews and even provide updates on application status. Therefore, candidates receive quick responses and support throughout the process.
 
Predictive analytics: AI can use predictive analytics to predict hiring needs and trends. This capability helps companies to proactively manage their talent pipelines and make data-driven recruitment decisions.
 
The integration of AI into the recruitment process can offer multiple opportunities for improvement, from increased efficiency to better candidate experiences. However, it is essential to address the ethical and practical challenges associated with AI.
 
AI should complement rather than replace the human touch in recruitment. As concluded in our recent webinar, the future of recruitment lies in striking a balance. Ensure you balance AI’s capabilities with the essential human elements of the process. By doing so, we can look forward to a recruitment landscape that is not only more efficient but also more human-focused.
 

Find out more about technology and how it is evolving to enhance your recruitment process:

 
 
Or talk to our team to discuss the future of talent management and what it means for your organisation.