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AI is revolutionizing the recruitment industry, but where will it go from here? Will it replace recruiters and affect the traditional hiring process? 

According to a survey, 30% of organizations use AI for their recruitment campaigns, whereas 65% of recruiters use AI to manage their hiring needs.


Talent acquisition specialists typically spend 13 hours (or close to one-third of their workweek) finding applicants for a single position. Using advanced technology like AI can help you streamline the process.

Here, we explore how AI is transforming the hiring process and why it won't replace recruiters but rather enhance their abilities.

 

Overview of how AI transformed the recruitment process

AI-based recruiting approach has taken the Hiring industry by storm. Each technology has its own pros and cons. Most companies use AI to enhance their recruiting efforts when we look at AI-powered hiring tools.

However, some incidents have raised questions about AI-based recruiting approaches.

One of these incidents occurred at Amazon, where the company's algorithmic bias discriminated against female applicants for jobs and favoured men for the position. Such incidents have led organizations to use AI as a complementary approach to recruiting.

 

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5 Limitations of AI in Recruitment: What Recruiters Need to Know

1. Inability to Adapt to Changing Recruitment Needs and Circumstances

AI tools are pretty inflexible when it comes to changing recruitment needs or circumstances.

When the skills or experience are not easily quantifiable, AI tools often struggle to provide the best output.

According to a survey, for the majority of candidates (56%), the final decision should always be handled by humans. In addition, only about 21% of respondents believe the technology is advanced enough to make these decisions already.

 

2. Building Rapport with Candidates in AI-based Recruitment is Challenging

Candidates often require that the recruiters listen to them and understand their qualifications. This type of rapport building is hard with an AI-based recruitment approach. 

Also, candidates are more comfortable communicating with a person rather than an AI-based video interviewing service.

Also, while conducting video interviews, AI tools can lack understanding and interpret incorrectly. For instance, salary negotiations cannot be done with an AI and always requires a recruiter to discuss with.

 

3. Potential algorithmic hiring bias based on historical data

Recruitment with Artificial Intelligence can have biased decisions as the software is not trained enough to make decisions eliminating bias.

LinkedIn also, during recruitment, found algorithmic bias and eliminated it. They analyzed that algorithmic bias is hampering their cultural goals, which is leading to a biased recruiting approach.

Thus, bias can lead to an unfair hiring process and recruit less qualified candidates for a job position.

 

4. Limitations in assessing soft skills

The limitations of AI apply to recruiting strategies, where due to limitations, AI tools can’t access the soft skills of candidates.

As humans are much more complex, AI can only access them based on a set of questions provided as input. But beyond them, accessing the skills such as emotional intelligence, teamwork, and creativity is quite impossible.

Also, basic skills such as communication, creativity, and empathy cannot be accessed by AI tools, which are an integral part of every job requirement.

 

5. Restricted ability to evaluate cultural fit

Cultural fit is a critical part of every organization as it helps recruiters understand the employee's values, work style, and personality.

Having the right candidates onboarded will help improve the productivity of the team.

As AI tools rely on past data, they cannot understand that the recruiting field is improving every day.

AI-based recruiting approach can lead to unwanted bias and hiring decisions that do not comply with the company rules or set practices.

How to leverage AI to revolutionize your hiring process:

75% of talent managers and recruiters use some type of applicant monitoring or recruiting software. 94% of them claim that software has enhanced their hiring procedure.

Reasons how AI will make your hiring process better:

  • 1. Use AI to achieve Diversity in your organization

  • 2. Helps with better employee retention and improved effectiveness

  • 3. More suitable candidates can be found with the help of Artificial intelligence-based screening.

  • 4. AI can help with scalability and cost savings 

  • 5. Improved reporting and analytics to make the hiring process better

 

 Also, Read-

The Future of Tech Hiring | Tacnique's Virtual Interview Platform

Say Goodbye To Time-Consuming Interviews: Advantages Of Interview As A Service
What is HR Analytics

What is Talent Management

Conclusion

In conclusion, while AI is transforming the recruitment industry, it is unlikely to replace human-based recruiting. Limitations in accessing candidates based on their soft skills and communication will always be there.

On the other hand, a successful recruitment strategy will have a mix of AI and human-based recruiting approaches to streamline the recruiting process.

The best approach will be to use AI for Screening and Initial Candidate Assessments and then leverage Human Recruiters for Relationship Building and Personal Touch.

 

Recruit with Tacnique-

Looking to automate the hiring process and onboard engineers quickly? Tacnique offers an AI-driven cloud hiring platform you can rely on.

 

Learn more about us using the link below:

The Future of Tech Hiring | Tacnique's Virtual Interview Platform

 

References

Entelo's 2018 Recruiting Trends Report.pdf (hubspot.net)

Recruiting Software Impact Report (capterra.com)

Amazon Scraps Secret AI recruiting tool that showed bias against Women | Reuters

LinkedIn Coughed Out AI Bias! Is AI in Recruitment Reliable? (industrywired.com)

 

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