Since the ATS, recruiters have leveraged technology to make their jobs easier, faster, and better. Today, the dominant theme in HR technology is AI for recruiting.
AI for recruiting is an emerging category of HR technology designed to reduce — or even remove — low-level sourcing activities like manually screening resumes.
Screening resumes efficiently and time-effectively still remains the biggest challenge in talent acquisition: 52% of talent acquisition leaders say the hardest part of recruitment is identifying the right candidates from a large applicant pool.
According to a survey of talent acquisition leaders, 56% say their hiring volume will increase this year, but 66% of recruiting teams will either stay the same size or contract. This means that recruiters are being tasked to do more with less.
To help you better understand this new field of AI for recruiting, we created this definitive guide for HR professionals on how AI can automate your workflow to more effectively engage, screen, and assess candidates.
AI For Recruiting: A Definitive Guide For HR Professionals – Table of Contents
- Section 1: What is AI for recruiting?
- Section 2: The benefits of AI for recruiting
- Saving recruiters’ time by automating high-volume tasks
- Improving quality of hire through standardized job matching
- Section 3: The challenges of AI for recruiting
- AI requires a lot of data
- AI can learn human biases
- Skepticism of new technology
- Section 4: The future of AI for recruiting
- Intelligent screening software
- Recruiter chatbots
- Digitized interviews
- Section 5: How AI for recruiting will change the recruiter role
- Section 6: A summary of AI for recruiting
Section 1: What is AI for recruiting?
AI for recruiting is the application of artificial intelligence such as learning or problem-solving exhibited by machines to the recruitment function.
AI for recruiting is designed to automate some part of the recruiting workflow, especially repetitive, high-volume tasks. For example, software that applies machine learning to resumes to auto-screen candidates or software that conducts sentiment analysis on job descriptions to identify potentially biased language.
Any area of recruiting where distinct inputs and outputs occur – like screening, sourcing and assessments – will largely become automated.
Section 2: The benefits of AI for recruiting
1. Saving recruiters’ time by automating high-volume tasks
Talent acquisition leaders report that their hiring volume will increase next year but their recruiting teams will remain the same size or even contract. This means recruiters will be expected to become more efficient by “doing more with less.”
Manually screening resumes is still the most time-consuming part of recruiting, especially when 75% to 88% of the resumes received for a role are unqualified. Screening resumes and shortlisting candidates to interview is estimated to take 23 hours of a recruiter’s time for a single hire.
AI for recruiting represents a boon for recruiters if it can successfully automate low-level, repetitive tasks such as screening resumes or scheduling interviews with candidates. The best AI for recruiting will be designed not only to automate a part of your workflow but to integrate seamlessly with your current recruiting stack so it doesn’t disrupt your workflow.
Looking for an AI solution to automate resume screening?
As a bonus, speeding up this part of recruiting through automation reduces time-to-hire, which means you’ll be less likely to lose the best talent to faster moving competitors.
2. Improving quality of hire through standardized job matching
Quality of hire used to be a bit of a recruiting KPI black box due to an inability to close the data loop (i.e., measure what happens to the candidates after they get hired). As HR data has become easier to collect, access, and analyze over the years, quality of hire has become recruiting’s top KPI.
The promise of AI for improving quality of hire lies in its ability to use data to standardize the matching between candidates’ experience, knowledge, and skills and the requirements of the job. This improvement in job matching is predicted to lead to happier, more productive employees who are less likely to turnover.
Early results are extremely promising. Companies that have adopted AI for recruiting software have seen their performance increase by 20%, their revenue per employee improve by 4%, and their turnover decrease by 35%.
Section 3: The challenges of AI for recruiting
1. AI requires a lot of data
In general, AI requires a lot of data to learn how to accurately mimic human intelligence. AI for recruiting that uses machine learning needs a lot of data to learn how to screen resumes as accurately as a human recruiter, for example. This can mean several hundreds to several thousands of resumes for a specific role.
2. AI can learn human biases
AI for recruiting promises to reduce unconscious bias by ignoring information such as a candidate’s age, gender, and race. However, AI is trained to find patterns in previous behavior. That means that any human bias that may already be in your recruiting process – even if it’s unconscious – can be learned by AI.
To avoid replicating human bias that may already exist, make sure any AI for recruiting software you use is aware of this issue and has taken steps to remove clear patterns of potential bias (e.g., only hiring graduates from a certain college).
3. Skepticism of new technology
HR professionals are often bombarded with the latest and greatest trend that disappears just as quickly.
Understandably, recruiting and talent acquisition leaders can be skeptical of any technology that promises to make their jobs easier. They want to be certain that any AI for recruiting they use that will automate one of their work tasks is able to do as good of a job as they can.
Section 4: The future of AI for recruiting
AI for recruiting has several potential applications for automating high-volume, repetitive tasks such as resume screening and pre-qualifying candidates.
1. Intelligent screening software
Intelligent screening software automates resume screening by using AI (i.e., machine learning) on your existing resume database to learn which candidates moved on to become successful and unsuccessful employees based on their performance, tenure, and turnover rates.
The software learns about existing employees’ experience, skills, and other qualities and applies this knowledge to new applicants in order to automatically screen, rank, and shortlist the strongest candidates.
The software can also enrich candidates’ resumes by using public data sources about their prior employers as well as their public social media profiles.
Intelligent screening software that automates resume screening represents a massive opportunity for recruiters because it integrates with your existing ATS, which means it doesn’t disrupt your workflow, the candidate workflow, nor does it require IT support.
2. Recruiter chatbots
Recruiter chatbots are currently being tested to provide real-time interaction to candidates by asking questions based on the job requirements and providing feedback, updates, and next-step suggestions.
The promise of AI for recruiting in the form of chatbots is the ability to improve the candidate experience. 58% of job seekers say they have a negative impression of a company if didn’t hear back from the company after submitting an application, whereas 67% of job seekers have a positive impression of a company if they receive consistent updates throughout the application process.
3. Digitized interviews
Online interview software has been available for a while, but today’s technology claims to be able to assess candidates’ word choices, speech patterns, and facial expressions to assess the his or her fit to the role.
Section 5: How AI for recruiting will change the recruiter role
Industry experts believe the future of AI for recruiting is Augmented Intelligence. Augmented Intelligence is the belief that you cannot fully replace human capabilities through technology. Instead, Augmented Intelligence suggests we should look to create technology to enhance human aptitude and efficiency.
The ability to use augmented AI to automate repetitive, administrative tasks will be extremely valuable. There are 3 main ways this technology will change the role of the recruiter:
- Recruiters will be able to conduct proactive strategic hiring rather than spend most of their time with reactive backfilling.
- Recruiters will have more time to spend with candidates in-person to help determine culture fit.
- Recruiters will able to close the loop with hiring managers as AI allows them to use data to show recruiting KPIs including quality of hire.
Section 6: A summary of AI for recruiting
- AI for recruiting is the application of artificial intelligence to the recruitment function that is designed to automate some part of the recruiting workflow, especially repetitive high-volume tasks.
- The main benefits of AI for recruiting include saving recruiters’ time by automating high-volume tasks and improving quality of hire through standardized job matching.
- The major challenges of AI for recruiting include requiring a lot of data, the potential to learn human biases, and skepticism of new technology by HR professionals.
- The future applications of AI for recruiting are intelligent screening software that automates resume screening, recruiter chatbots that engage candidates in real-time, and digitized interviews that help assess a candidate’s fit.
- AI for recruiting will change the recruiter role through augmented intelligence which will allow recruiters to become more proactive in their hiring, help determine a candidate’s culture fit, and improve their relationships with hiring managers by using data to measure KPIs such as quality of hire.