The concept of Artificial Intelligence has been present for decades, but it has become noticeable in recent years. The word AI (Artificial Intelligence) was first coined by John McCarthy in 1956.
It is a part of computer science and engineering; it has technology that will work like a human. It has various features like speech recognition and chatbots.
Nowadays, AI software is widely used by HR recruiters for a smooth and time-saving purpose. AI can be used by recruiters in various steps of the recruitment process.
Steps of the Recruitment Process
- Identifying vacancies or hiring needs
- Strategy planning
- Manpower planning
- Budgeting
- Creating job descriptions
- Searching for candidates or posting job advertisements
- Shortlisting and screening CVs
- Communicating with candidates
- Scheduling interviews
- Preparing questionnaires
- Screening and checking answer sheets
- Conducting interviews
- Decision making
- Document verification or background verification
- Offer letter generation
- Following up with candidates until they join
For a deep dive into crafting effective job specs and screening workflows, check out our Recruitment & Selection course.
Challenges in Traditional Recruitment
Companies go through various research techniques to set the parameters of what kind of knowledge, qualifications, and work experience are required for a vacant position.
Recruitment of the right candidate for the right position is always a big challenge for HR. A lot of improvement and measurement is required to solve this problem in the long run. Timely fulfillment of current vacancies is very tough in the current situation.
Role of AI in Recruitment
AI in recruitment has transformed the traditional recruitment process. If the combination of human creativity and intuition is added to AI technology, it can be a powerful tool for the hiring process, succession planning, and spotting candidates who are open to work at every level, more effectively in terms of time and cost.
Different Ways of Recruitment
- Employee referrals
- Job posts on job sites like LinkedIn, Naukri, Indeed, Monster.com
- Job posts on social media for advertising.
- Directly searching or sourcing potential candidates
Benefits of AI Tools in Recruitment
Job Description Drafting
AI can draft job descriptions and post advertisements. For example, if a recruiter wants to hire a plant in-charge for a manufacturing company, they can simply write āPlant In-Chargeā to a chatbot, and the AI tool will draft it.
Not only a single job description, but a recruiter can draft multiple job descriptions for multiple designations.
Suppose a recruiter finds ten vacancies and needs to fill them within a timeline, which may be difficult and create a workload for the recruiter. AI tools step in: they will draft all the job descriptions as per the requirement within a very short time span.
After reviewing the job descriptions, the recruiter can modify them (if required) and ask AI tools to post the job advertisements to job sites like Naukri.com, LinkedIn, Indeed.com, or on social media. From senior level to junior level, all types of job descriptions can be done here.
Shortlisting Applications
AI software can easily sort a vast number of resumes and analyze them according to the requirements. For example, a recruiter has posted a job vacancy, and hundreds of candidates have applied and shared their resumes.
Now it becomes difficult and time-consuming for a recruiter to go through each resume and shortlist them.
AI tools can easily evaluate and shortlist potential candidatesā resumes by using the most effective keywords for the necessary skills, qualifications, and experience, which normally takes weeks for a recruiter.
Resume Screening
The automated screening of resumes can easily filter out or disqualify unfit candidates as per job criteria. This reduces time and also reduces the workload of the recruiter.
PreāScreening Questionnaire Preparation
AI tools can create multiple preāscreening question forms like name, age, sex, educational qualifications, past work experience, family details, references, relevant job experience, etc.
Guidance with Information
It is helpful for recruiters and candidates alike. If a candidate wants to know about the payment structure or job responsibilities for a posted job, they can easily visit the AI chatbot and ask for it.
AI tools will show the job responsibilities and the maximum or minimum payment structure. If a recruiter wants to draft a job description, they can simply take the help of AI tools.
Database Management
AI also helps recruiters to manage and analyze a huge database. Suppose a recruiter got 100 applications: managing these and scrutinizing them manually to create a database is lengthy and time-consuming.
With an automated AI system, if a recruiter wants to create a database or spreadsheet, they can ask the AI tools to create it as per their requirement.
This database can be helpful for future reference or sourcing in recruitment: if in future a recruiter wants to hire someone for a position, they can ask AI to find a good-fit candidate from the database; its advanced technology will show if that candidate is open to work, where they are currently working, and their past work history.
Employer Branding
By using AI technology, companies can provide potential candidates a smooth and less time-consuming recruitment process. AI can give feedback even to rejected or disqualified candidates so that they also get a chance to apply in the future.
Coordination Between Applicant and Recruiter
AI can coordinate and schedule interviews with good-fit candidates. The AI chatbot can create personalized, customized messages and ensure timely follow-up and responses to candidates.
For example, a recruiter has shortlisted fifty candidates and wants to send each of them personalized messages or interview invitation links; they can ask AI tools to draft these messages and send them according to the interview schedule and venue, along with a Google Map link.
If a recruiter wants to follow up with a candidate, the AI tools will use the advanced applicant tracking system to track the candidate, helping in timely tracking and follow-up.
Interview Questionnaire Preparation
AI can draft job interview questionnaires or arrange psychological tests for candidates. This helps recruiters in face-to-face interviews to understand candidatesā psychology or any behavioral issues.
Interview Feedback Form
AI can summarize thousands of feedback sheets or create an evaluation sheet after an interview. This helps in the seamless and smooth completion of recruitment.
Video Interviews and Facial Recognition
Many companies now use video interviews and facial recognition for hiring. AI can schedule video interviews and analyze candidatesā body language.
Better Candidate Experience
AI provides an improved candidate experience because the shorter hiring cycle means less time spent waiting for updates, preventing the loss of good candidates.
Prediction Ability
AI tools can predict how long a particular candidate will stay in an organization by evaluating their past performance and employment history, thus reducing attrition rates.
Employee Retention and Fit Analysis
AI helps recruiters with employee retention and predicts if a candidate is a suitable cultural fit.
Removing Bias in Recruitment
AI tools can remove biases in the recruitment process by focusing only on relevant selection parameters like qualifications and experience, reducing the risks of gender bias, racism, or personal connections, and creating a more merit-based recruitment system.
Bulk Hiring with AI
Bulk recruitment is a big challenge for recruiters. It combines the need for a right hiring strategyāincluding budgeting, manpower planning, and team buildingāwith providing a good candidate experience in a short time span.
For example, if there are 30 positions vacant in an organization across different locations and the recruitment team has to fill these vacancies in one month, after the job posting, there may be around 300 CVs.
It becomes very difficult to pre-screen, shortlist, coordinate with each shortlisted candidate, schedule interviews, prepare questionnaires, and conduct face-to-face interviews.
The complete process can take several months. Keeping this in mind, corporate giants like IBM, Walmart, Shell, and Grameenphone are applying AI technology for mass hiring.
PostāSelection AI Uses
Document Collection
AI can be used after selection for document collection and verification. For example, if 10 or 15 candidates are selected for various positions, it takes time to email them the required document lists and follow up on submissions. Using AI tools, recruiters can send bulk emails to candidates and collect all required documents.
Background Verification
Background verification is essential nowadays. Recruiters check applicantsā past educational qualifications, personal information, work experience, and criminal records.
Manual processes like emailing past organizations or hiring external agents cost more and take time. Using AI technologies, automated background verification tools can verify multiple candidates simultaneously within a short time and show past company feedback.
Offer Letter Generation
With AI tools, recruiters can effortlessly generate offer letters, either singly or in bulk, and ask the AI to send them quickly.
Offer Tracking
AI tracks whether selected candidates have accepted the offer. This is especially helpful in bulk hiring, which may involve single hiring for one department, multiple hiring in one department, or multiple hiring across different departments. AI makes the process smooth and less time-consuming.
Reducing Talent Waste
With AI, organizations can broaden their chances of matching candidates to specific job descriptions, reducing talent waste.
Limitations and Cons of AI in Recruitment
Lack of Human Touch
A lack of human connection means AI is automated; if recruiters fully depend on it, candidates will not get answers or confidence about the organizationās culture, values, and roles.
Similarly, recruiters miss the chance to connect personally. Interacting with candidates provides broader insights that aid decision-making.
AIāInduced Bias
AI tools can introduce data or algorithmic bias, so it is important to check regular updates and maintain quality. A human eye is needed to monitor AI outputs.
Real Case Example: Amazon
In 2018, Amazon stopped using AI-based recruitment technology because it was found that AI created discrimination against female applicants. This shows AI cannot always provide accurate, error-free hiring. Recruiters need extensive training on AI tools to prevent bias and discrimination.
Missed Candidates
AI tools are not error-free. Sometimes recruiters may miss good candidates. For example, if recruiters set parameters requiring a CA-inter qualification and 4 years of experience for an Audit Executive, AI may automatically disqualify CVs that do not match.
Yet recruiters might find a candidate with non-traditional qualifications but strong work experience. Such candidates can be added manually.
Compliance and Data Protection
āAutomated background checks must adhere to regulationāour Statutory Compliance course shows you how. In the US, many companies using AI for hiring register under the California Consumer Privacy Act; in the EU, they comply with the General Data Protection Regulation. These regulations limit data usage and prevent breaches.
High Cost of AI
AI technology is not cheap currently, but it may become more affordable in the future.
Huge Data Requirement
Recruitment data management requires large volumes of data to understand candidatesā complex behaviors.
Limited Prediction Accuracy
AI prediction tools are not always correct. It is not always possible to know which parameter led to a candidateās rejection or selection. Proper machine learning and recruiter training are required for transparency.
Data Privacy Concerns
As AI tools advance, they must ensure they collect only relevant candidate data and obtain informed consent. Transparency about data storage and usage is vital to build candidate trust and confidence.
Complex Algorithms
Complicated AI algorithms make it difficult for candidates to understand the factors influencing their selection.
Final Thoughts
Although AI has several benefits and drawbacks, and there will be controversy over its accuracy, it cannot be fully relied onāerrors in decision making are possible because AI algorithms are designed by humans.
Human monitoring is always important at every step. Still, AI tools are continuously upgrading and will soon become part of our daily lives. Continuous learning and training will be needed to adapt to this AI technology.
Combine AI-driven hiring with solid process designāsee our Key Principles of Organization for a full framework.
