The AI market is estimated to reach a whopping value of $407 billion by 2027.
And the recruitment industry, alike every other niche, is all into the drill – be it AI in chatbots, automation, or speech recognition.
But while it can surely reduce unconscious bias and ensure efficiency, can AI be trusted in framing actionable recruitment strategies?
Let’s find out.
How (and why) is AI used in recruitment?
By integrating advanced technology, businesses can redefine hiring—making it more streamlined, data-driven, and effective.
Attracting and retaining the cream of the crop becomes second nature.
However, the decision to weave AI into recruitment isn’t a simple one, despite its glowing potential.
So, creating a risk matrix template can help you reach the right conclusion without having to deal with the fuss.
Here, we will discuss the uses, benefits, and risks of employing the best of artificial intelligence in your talent acquisition practices.
1. Automation of manual tasks
AI recruitment tools can automate the majority of the manual work involved in the hiring process and save you a significant amount of time and money.
For example, you can:
- Create optimized job descriptions
- Screen application forms for keywords
- Score and rank candidates based on predefined criteria
- Use data to identify suitable candidates
- Automatically schedule interviews
By automating these tasks, the recruitment process becomes less labor-intensive, freeing up HR teams to concentrate on more strategic aspects of their role.
You might also like: How to choose the right recruitment automation software for your agency?
2. Identification of trends and patterns in data
Implementing AI for recruitment data analytics in your TA model can help you gain valuable insights that fuel continuous improvement and help optimize the overall business performance.
For example, hiring teams could use AI to gather and analyze data on:
- Volume of applications
- Number of candidate drop-outs (and at what stage of the process)
- Candidate experience
- Hiring outcomes
- Cost of the recruitment process
Using technology to support a data-driven hiring approach frequently reduces time-to-hire and cost-per-hire, in turn increasing the number of successful placements.
3. Career mapping and talent matching
It’s interesting how AI can also assist in-house recruitment teams in creating better career graphs for their employees, specialized to what they bring to the table – all within the business itself.
For prospective employees, artificial intelligence can recommend jobs based on their interests, preferences, or any other criteria they have set.
It can also use data gathered from candidate experience, search history, and location to suggest appropriate job openings.
For employers, this data can be used to reach out to potential candidates and start building meaningful relationships that can contribute to enriching their talent pipeline.
But as you go about communicating and interacting with job seekers, it is crucial to ensure that the involved practices comply with GDPR and other legal boundaries.
4. Reducing unconscious bias
Even in hiring teams with the best intentions, unconscious bias can still affect the fairness of the recruitment process.
AI can help by screening applications based on skill set, experience, and suitability for the job, rather than demographic or other discrimination-prone metrics.
For example, companies may use artificial intelligence to ensure all candidates are interviewed with the same set of questions, leveling the playing field for all.
It helps raise awareness, putting an end to the cycle of discrimination and prompting quick solutions that mend the cracks.
How to ensure your use of AI in recruitment is ethical?
1. Choose your AI software carefully
When choosing the ideal AI software for recruitment, you must commit only after extensive research.
And don’t be afraid to run an inquiry on whether the ethical standards have been met, paired up with adequate evidence.
Some boxes to tick off include–
- Has the software been audited?
- Can the developer explain how and when the AI is used?
- Where does the database of training the AI model come from?
These are good indicators that the AI solution is ethical and falls in line with the legal clauses.
2. Educate yourself on AI laws and regulations
The rapid expansion of AI hasn’t gone unnoticed; governments are actively stepping in, ensuring that this domain operates safely and ethically.
With new regulations emerging, you might wonder:
Is my business under the umbrella of AEDT?
Should I be concerned?
It’s essential to proactively dive into these regulations. Understanding them not only ensures compliance but can also offer strategic advantages for your company.
3. Be transparent with candidates
To use AI ethically in your recruitment process, you should be transparent with the candidates about how it is being used.
The key here is to ask the promising applicants to share their data, directly demonstrating how it will be used as part of the recruitment process.
Candidate need not understand every detail of the system but should be equipped with ample knowledge regarding the storage and utilization of their data.
4. Monitor your use of AI in recruitment regularly
AI in recruitment is used to make sensitive decisions about individuals, leveraging their personal data including location, education, work history etc.
For the same reason, it must be audited and monitored regularly to confirm that it continues to fit the purpose.
While AI boasts a potent arsenal of capabilities, it’s best when used within moral limits.
That’s what helps recruiters attract the right people to the right jobs, transform the hiring process, and build the best teams to drive business growth and success.
Frequently asked questions
1. How can we ensure AI in recruitment doesn’t discriminate?
To avoid discrimination, it’s vital to train AI systems on diverse and unbiased data. That said, you should also frequently test for biases and implement checks and balances wherever possible.
Continual audits and feedback mechanisms can help maintain an equitable recruitment process.
2. Is it ethical to use AI for video interview analysis?
Ethically, video interview analysis requires informed consent, clarity on data use, and transparency in result interpretation.
If candidates are aware and agree to AI analysis, and their privacy is maintained, it’s considered more ethical.
3. How can we maintain candidate privacy with AI recruitment tools?
To maintain privacy, employers should anonymize personal data, store it securely, and retain it only as long as necessary.
Transparent data handling policies and compliance with data protection laws are also essential.
4. Can an AI recruitment decision be challenged?
Yes, decisions made by AI should be explainable and transparent.
If a candidate believes they’ve been unfairly evaluated, employers should have mechanisms in place to review and potentially override the AI’s decision.