Elevating Employment: AI Intervention in Hiring

Before artificial intelligence (AI) captured the zeitgeist, the recruitment process was relatively simple: companies created job listings, job seekers printed out their resumes, applied for the position, dressed smart, and were ready to interview. However, since AI and other digital technologies came along, the employment landscape has radically changed.

Recruiters are now using Applicant Tracking Systems—resume bots to assist in writing job descriptions, scanning resumes, and even scheduling interviews. With these advanced technologies, it's common for applicants to be rejected by computers (without them even knowing) before they can talk to an actual human. 

But that's not the only case. If recruiters can use AI advances to sort candidates and evaluate their skills, job seekers are learning how to use AI to create compelling cover letters and resumes and even use it to complete any assigned tasks. 

These issues pose a question, "How can we—employers, make the most out of AI to find real talent in this digital transformation era?"

The Role of AI in the Hiring Process

Undoubtedly, AI plays a pivotal role in facilitating the recruitment process. This goes beyond just screening resumes. AI can now access skills and predict one's performance with advanced predictive analytics and machine learning.

According to the latest report done by The Guardian, almost 88% of global companies have integrated AI in HR, recruitment include. This exemplifies the rapid and widespread adoption of AI. 

Some Latest Recruitment Statistics:

• 88% of global companies use AI technology in HR.

• 41% of the above companies use AI chatbots to engage with candidates during recruitment.

• 44% of them are applying AI to filter the best candidates based on their digital footprint (i.e., social media profiles)

Like others, the HR industry also greatly benefits from integrating AI into recruitment. A recent report found that early AI recruitment adopters have reduced their cost per screening candidate by up to 75%, not to mention the 35% decrease in employee turnover due to efficient hiring. Additionally, since AI-driven recruiting solutions are data-driven, they can minimize human bias and promote fairness in candidate selection, at least in the first couple of stages. The ATS screens resumes based on the prefilled requirement (like keywords in the job description). The technology ensures that hiring decisions are based on merit and qualifications rather than cognitive bias that we humans may have. But with that being said, some potential job seekers without good writing skills can be easily eliminated by bots.

Challenges Prompted by AI in Recruitment

Incorporating AI into HR and recruitment is multifaced. While AI can enhance efficiency, there are multiple risks prompted by AI.

If resume screening solutions only do one job, which is to match job descriptions with suitable resumes, there isn't much to worry about. However, when combined with machine learning and predictive analysis, there's a risk of perpetuating bias. This is due to AI inheriting prejudices from historical, existing data. In 2018, a hiring tool by Amazon was found to favor male candidates simply because of bad training; to be more precise, when most applicants were male, AI thought that men were more suitable, leading to downgrading any female candidates. 

Not to mention the rise of digital privacy, security, and ethical concerns. We want to take a quote from the Brookings Institution's Artificial Intelligence and Emerging Technology Initiative to convey the idea, "As AI evolves, it magnifies the ability to use personal information in ways that can intrude on privacy interests by raising analysis of personal information to new levels of power and speed."

As for job seekers, they are learning to use resume-boosting software to improve keyword-matching and AI writing tools to draft cover letters and resumes to avoid a "no" from AI-powered hiring software. Some of them are even learning how to use AI to finish their interview tasks and even in their work. Though it's okay to utilize the new tech, it poses the question of finding genuine talents amongst a sea of AI-generated content.

The solution

AI-based hiring requires mitigating bias; employers adopting AI-hiring software can employ strategies like diversifying training data and algorithm transparency to reduce the risk of perpetuating biases and enable companies to identify and address bias more effectively. 

Companies must use AI responsibly, ensuring it does not unintentionally discriminate against certain groups. Fairness and equity should be at the forefront of recruitment practices, and companies should actively address any ethical concerns that arise. Furthermore, industry standards and guidelines are pivotal in shaping ethical practices in AI hiring. Sticking to these standards can help create a framework for responsible and ethical AI utilization, promoting a more just and inclusive job market.