AI in recruiting: opportunities and challenges

The use of artificial intelligence (AI) in recruiting is increasing, but many candidates are skeptical about the technology. What benefits do recruiters get from AI and how can they reduce applicants' skepticism?

The advantages and opportunities of AI in recruiting

How can artificial intelligence support recruitment? This question has been addressed by a Stepstone Study According to her, the recruiters surveyed see the following advantages for their work:

67 % expect a discount of Time to Hire
63 % find that AI helps with sourcing
59 % see Artificial Intelligence as Support in planning and coordination
55 % expect more efficiency for candidates in the application process, also a better candidate experience
53 % think, that AI supports screening

In addition to the huge potential for the entire recruiting process, artificial intelligence can also help HR professionals individually in their day-to-day work. AI tools for recruiting are e.g. ChatGPT, das u. a. beim Verfassen von Jobbeschreibungen oder Kandidaten-Anschreiben unterstützen kann, die AI-Funktion von „Clickup“ für effizientes Projektmanagement oder „Beautiful AI“ für die Erstellung von Präsentationen im Recruiting.

via GIPHY

10 examples of the use of AI in recruiting

Yes, artificial intelligence is no longer a thing of the future. It is already being used in various areas - including recruiting. The following examples should make it clear that AI has long since arrived in personnel recruitment and will probably be expanded even further in the future.

1) Applicant screening with artificial intelligence

AI applications analyze resumes and applications to identify the best candidates for open positions. With appropriate training, they can, for example, search social media channels and forums for talent with specific requirements. Through machine learning, the AI systems can continuously learn and optimize their selection criteria in order to find the best matches between the Requirements profile for a position and the skills of the applicants.

2) Digital assistants as contact persons for candidates

Chatbots and virtual assistants provide candidates with 24/7 support and can answer basic questions, schedule appointments, and provide information about open positions. They increase the user-friendliness of applicant portals and reduce the administrative burden on the recruiting team. Chatbots eignen sich auch hervorragend, um Feedback der Kandidaten zu sammeln. Ein verbreitetes Tool zum Erstellen von Chatbots ist „Power Virtual Agents“.

Chatbots mit KI im Recruiting — *(Photo: https://de.freepik.com/fotos-premium/geschaeftsmann-der-mit-ein-tablet-works-and-the-control-box-marked-successful-geschaeftsrechnung_48028559.htm by @Akarapong Chairean)*

3) Predictive Analytics

KI kann historische Daten und Erfolgsfaktoren nutzen, um Vorhersagen über die Eignung von Bewerbern zu treffen. Diese Vorhersagen ermöglichen es Unternehmen, besser zu verstehen, welcher Kandidat wahrscheinlich am besten zur Unternehmenskultur und zur offenen Position passt. Predictive Analytics kann so den Auswahlprozess optimieren und die Qualität der Einstellungen verbessern. Ein bekanntes KI Tool, das derartige Prognosen entwickeln kann, ist „Sisense“.

4) Automated interviews

In AI-based interviews, algorithms evaluate the answers after the digital interview, taking into account specialist knowledge as well as Soft skills (Kommunikationsfähigkeit, Teamgeist etc.) bewertet. Die Bewertung der KI entscheidet mit, ob der Kandidat in die engere Auswahl kommt oder eine Absage erhält – der Auswahlprozess wird so beschleunigt und das Matching lässt sich verbessern. Ein bekanntes Programm, das KI-basierte Videointerviews aufzeichnet, ist „HireVue“.

5) Data-Driven Decision Making

KI ermöglicht datengesteuerte Entscheidungsfindung im Recruiting. Dabei steht die Analyse großer Datenmengen im Fokus. Diese umfassen nicht nur die Interpretation von Bewerberdaten, sondern bspw. auch die Auswertung von Interaktionsdaten, wobei die Interaktionen von Kandidaten mit dem Unternehmen analysiert werden. Auch für Performance Analytics kann Künstliche Intelligenz zum Einsatz kommen. Dabei können anhand von umfangreichen Datenauswertungen bspw. Recruiting-Strategien und -Kanäle bewertet werden. Solche Datenanalysen lassen sich mit KI Tools wie bspw. „Julius AI“ oder „Scale“ durchführen.

Data Driven Decision Making im Recruiting — *(Photo: https://de.freepik.com/fotos-kostenlos/haendedruck-des-jungen-mannes-des-selektiven-focused-mit-jemand-im-buero_5392753.htm by jcomp)*

6) Skill gap analysis

AI can help identify a company's skills needs by analyzing existing employee profiles and requirements for open positions. Companies can develop training and development programs specifically to upskill employees and address bottlenecks in certain skills. Skill gap analyses support long-term workforce planning and employee development.

7) Diversity Recruiting

AI can help minimize bias and discrimination in the application process by using objective criteria when selecting candidates. It can also detect and avoid biased language or discriminatory wording in job advertisements or resumes. By integrating AI tools into the selection process, companies can increase their diversity and inclusion efforts and ensure that the best talent is selected regardless of personal characteristics.

8) Career changer training

More and more recruiters see Career changers as a solution to the shortage of skilled workersHowever, decision-makers often have doubts, partly because the training would be too time-consuming. Artificial intelligence can help here: Employees can Onboarding of career changers The burden can be reduced by using AI-supported learning platforms for training and further education.

Quereinsteiger Schulung mit Künstlicher Intelligenz — *(Photo: https://de.freepik.com/fotos-kostenlos/person-die-ein-ki-tool-bei-der-arbeit-verwendet_60357567.htm by freepik)*

9) Automated scheduling with AI

AI-basierte Systeme können auch die Planung von Vorstellungsgesprächen automatisieren. Indem sie die Verfügbarkeit der Recruiter und Bewerber berücksichtigen, können KI-Tools effizient Zeitpläne koordinieren und automatisch Termine planen. Dies spart nicht nur Zeit, sondern minimiert auch mögliche Terminüberschneidungen und erleichtert den gesamten Planungsprozess. „Calendly“ ist zum Beispiel ein bekanntes Terminplaner-Tool, das zunehmend auf KI setzt.

10) Maintaining relationships with candidates using AI chatbots

AI chatbots can be used to build long-term relationships with talent. They can regularly interact with talent pools, provide up-to-date information, share career opportunities, and answer questions. By continually nurturing relationships with potential candidates, the company stays top of mind when suitable positions become available.

How do candidates respond to AI?

Despite all the benefits, it must of course be mentioned that AI is not without its flaws. It can also bring ethical and legal challenges in recruiting, particularly with regard to data protection and discrimination. In addition, the human factor is still crucial, as AI systems are not able to assess the full range of human skills and qualities.

Such concerns are also widespread among applicants. This has led to a Study by the International University (IU) found that 64.7% of respondents are opposed to artificial intelligence in application processes and rate technological developments as negative.

These are the 6 biggest disadvantages of AI in the application process according to the IU survey:

Applicants see “impersonality” in particular as a major disadvantage. Many of those surveyed miss the “human factor,” but at the same time they see it as a risk – because it could cause the AI to be programmed incorrectly.

Also interesting: While candidates are rather skeptical about the use of artificial intelligence by companies, they themselves use it, according to a softgarten study Apparently algorithms are increasingly being used to create applications.

What can be done to reduce applicants’ skepticism?

Companies can reduce the skepticism of many applicants towards AI in recruiting. Here are possible steps that can be taken:

Transparency and explanation: Companies should clearly explain to candidates how AI is used in recruiting and what role it plays. This builds trust and promotes applicants' understanding of the technologies.
Diversity in training AI models: Companies should ensure that AI models are trained fairly and in a balanced way. This means avoiding bias and discrimination. This includes regularly reviewing and adjusting training data and algorithms.
Maintain human interaction: Although AI plays a role in recruiting, human contact should not be neglected. Companies can use artificial intelligence to make the process more efficient, but human recruiters should still be integrated into the process and offer personal contact and support.
Data protection and security: Companies should ensure that applicants' data is safe and protected from third parties. This includes complying with all data protection regulations and communicating transparently about how data is stored and used.
Ethics and responsibility: Companies should develop ethical guidelines and responsibilities for the use of artificial intelligence in recruiting and ensure that all employees are trained in it.
Openness to feedback: Companies should be open to applicants’ feedback regarding the AI-driven application process and make adjustments if necessary.

Recruiterin erklärt KI-Technologie — (Photo: https://de.freepik.com/fotos-kostenlos/geschaeftsfrau-in-einem-seminar-das-ein-diagramm-zieh_15441017.htm by rawpixel.com)

Will artificial intelligence soon make recruiters redundant?

The range of AI applications is increasing - and many of them are useful for recruiting or even developed specifically for this purpose. The use of artificial intelligence has already become established in many areas of recruitment and serves as a decision-making aid. The trend is therefore heading in a clear direction and it is probably only a matter of time before recruiters use AI algorithms as a matter of course in their work.

It is important to take the doubts and concerns of candidates, but also of colleagues or superiors, seriously, to actively counteract errors and dangers and to make continuous optimizations.

Despite the AI trend, it is also important to note that artificial intelligence can support recruiters, but it can never replace them. Ultimately, it is up to us humans to decide whether we want to hire someone. After all, it is us who will then work with these new employees.

(Source cover image: https://de.freepik.com/fotos-premium/attractive-businesswoman-in-white-shirt-at-work-working-with-laptop-to-hire-new-employees-for-international-business-consultancy-hr-social-media-hologram-symbols-over-office-background_37497772.htm by videoflow)