AI in Talent Acquisition: Everything You Need to Know

Gary Espinoza
•8 min read
- AI/ML
- Hiring vetted talent

Today, recruiters are collaborating with new Artificial Intelligence (AI) software and technology to streamline the recruitment process. Hybrid vetting and hiring processes combine the creativity and experience of the human recruiters with the expansive capabilities and efficiency of AI to significantly improve the talent acquisition process.
In this article, we will take a look at how AI and automation can enhance the talent acquisition process. Then we will review five benefits of the hybrid approach to talent acquisition. After that, we will explore companies that are already using AI for talent acquisition, and how they are doing so. We will address potential challenges facing talent recruiters who rely on AI, including possible ethical concerns that recruiters should be aware of. And finally, we will take a look at the future of AI in talent acquisition, to gain a deeper understanding of how the field will develop from here.
How AI enhances talent acquisition
Combined with human intuition, creativity, and ingenuity, AI can be a powerful tool for recognizing talent and spotting likely candidates for open positions at companies of every scale. This combination is on track to completely transform the recruitment process across industries, particularly within the technology sector.
Here’s how AI software can enhance talent acquisition processes:
Analyzing data
Advanced AI algorithms can sift through vast amounts of data within short amounts of time, superseding human capabilities to engage with information in the same time period. The AI software can analyze this data and identify whether or not each candidate has the necessary skills, experience, and qualifications to match the job description.
AI software can sort through hundreds of submitted resumes and proactively identify potential candidates based on relevant skills, experience, and qualifications. So, AI can be an inevitable asset when it comes to matching and evaluating skills and requirements for potential candidates.
Streamlining the hiring process
AI talent acquisition software can also be used to automate parts of the hiring process and to provide assistance to both recruiters and potential employees. For example, one of the differences between an employee and a contractor is how they are paid. If a prospective employee needs to find out about the payment system for the job they are applying for, they can ask a chatbot that is pre-programmed with answers to queries like this. This reduces the amount of routine work that recruiters need to do.
Benefits of the hybrid approach to talent acquisition
There are several benefits of utilizing the combined approach of a human recruiter and AI-powered talent acquisition software. By streamlining the process from beginning to end, AI can help the recruiter make better hiring decisions. AI can also pave the way for lasting work relationships. Let’s take a look at the five major benefits of using the hybrid approach to talent acquisition.
Improved hiring accuracy
While recruiters might spend countless hours vetting potential employees, AI software can engage with vast amounts of data and, within hours or even minutes, analyze which potential hires might be a good fit for the job. AI software can match job qualifications and requirements with candidates’ skills and experience, quickly sorting through resumes that do not provide a good match.
In addition, AI software can locate and identify possible candidates who may be a good fit based on skills and experiences but did not apply for the job yet. And AI can analyze a candidate’s online presence, including their resume and social media profiles, to determine whether or not they are likely to succeed in the open position.
Streamlined recruitment processes
AI-powered chatbots can help to streamline the recruitment process by providing an around-the-clock source of answers and information for prospective candidates.
AI can also be used to schedule, coordinate, and even conduct video interviews. This can be an essential tool for pre-screening general candidates, which cuts back on time and money spent before identifying top candidates for the position. With AI video interviews serving as an initial step in the recruitment process, recruiters can free up their time and energy for in-person interviews with candidates who are likely to be a good fit for the offered job.
Better talent retention
By comparing the previous work history of prospective candidates to the current work and behavior patterns of employees in similar positions at the same company, AI software can analyze the potential for ongoing success of each prospective job applicant.
By contributing to long-term success, AI software helps improve talent retention statistics, fostering long-lasting and loyal working relationships with employees who are committed to both their jobs and the companies they work for.
Efficient onboarding process
AI software can automate some of the time-consuming aspects of the onboarding process. Drawing from a stored database of company policies and procedures, AI can update salary information, paid time off policies, and other onboarding procedures. New hires can also work with an automated AI system to complete any required training sessions and safety regulations.
Reduced costs
Job recruiters who work together with AI software to make hiring processes more efficient save time, which eventually saves employers money. This aspect is crucial to consider when it comes to the finances of your business. Streamlining the recruitment, hiring, and onboarding processes reduces costs, resulting in a favorable combination of lower expenses and increased productivity.
Companies that are already using AI for talent acquisition
Amazon
Amazon has been developing an automated system for evaluating new hire applications. This system will use AI to analyze and decipher which job applicants will be most likely to succeed in the role for which they are applying.
This automated software reviews the submitted resumes of job applicants, comparing them to data and behavioral patterns from current Amazon employees. Once the AI software has identified promising candidates, these interviewees are streamlined into top-level interviews for medium to high-ranking positions within the company.
LinkedIn has already been using AI technology for job recruitment purposes for years. The online platform is currently working towards a new generative AI that is even more deeply integrated into the functions of the site, helping both potential job candidates and recruiters find better matches with greater frequency.
This generative AI software will serve as a dynamic assistant to recruiters, enabling recruiters to pass off tasks like writing job descriptions, sorting through general applications, and analyzing resumes.
Southwest Airlines
Southwest Airlines has begun to use AI software crafted by the tech company Phenom to streamline its hiring processes. The airline uses this AI-enabled software to keep a dynamic database of potentially fitting candidates for future positions.
So whenever a new job posting opens up within the company, the airline can reach out to a pre-selected pool of likely applicants, including those who applied for previous positions or who sent their resumes when no open positions were available. This AI software can also schedule interviews and coordinate meetings with potential hires, making a more efficient hiring system.
Potential challenges facing AI talent acquisition
Chatbots are the main type of AI used in talent acquisition processes, and this wildly popular type of software comes with some issues that will need to be addressed as the technology evolves. Chatbots, like ChatGPT, which have attracted a high number of users for a new application, are easily implemented and can be intuitive to use. However, they also come with some challenges.
Chatbots and other AI platforms have exhibited pre-programmed biases, including prejudices based on race and gender, raising serious ethical concerns. This is a particular risk when it comes to hiring processes, as implicit biases in the foundation of the AI software can lead to inequality and biased hiring practices. In other words, some applicants may be rejected based on gender, race, or other demographic information without a recruiter even being aware of it.
In addition, chatbots and other AI software and tools can provide only pre-programmed responses to candidate inquiries. And the data that is submitted by candidates is analyzed quantitatively, not qualitatively. While there may be some objective skills and requirements a candidate should exhibit in their application materials, there is also a necessary human element that requires a subjective appraisal of a candidate’s fit for the job.
Some hires are made based on intuition, personality, and ambition, not simply on previous experience. These are qualities an AI tool is likely to overlook, ruling out candidates who do not line up with predetermined qualifying data factors.
The future of AI talent acquisition
Organizations are increasingly turning towards data-driven recruitment methods for streamlining their hiring processes.
According to the Society for Human Resources and Management, 79% of employers are already using some form of AI or automation for talent acquisition and recruitment purposes, and between 35% and 45% of companies are likely to adopt AI tools for talent acquisition this year.
In order to ensure that candidates and companies are acting in good faith and being treated with respect, organizations will need to boost their skills training for managing AI software. Widespread guidelines and rules will have to be created around the ethical use of AI, and how to make certain that AI is not pre-programmed with implicit biases.
Already AI is being used for mitigating human biases as well, by identifying and editing communications with job candidates to ensure that it is more inclusive. As AI continues to be used for talent acquisition, employees, employers, stakeholders, and tech developers will need to collaborate to raise awareness about how to use AI software in an ethical, safe way.
Final thoughts
As AI technology continues to evolve, talent recruitment agencies and individuals will likely continue to reap the benefits that AI can provide. While it is not a substitute for human intuition and subjectivity, AI software can help to streamline the hiring process. AI can sort through hundreds of resumes much faster than any human can, thereby making the initial talent recruitment process much more efficient.
By comparing previous work history with the patterns of current employees, AI can help to predict the lasting success of prospective candidates, providing more job retention and higher quality employees. Employers can save costs by embracing the efficiency of AI-powered talent acquisition software, using it to answer candidate questions, write job descriptions, schedule and conduct remote interviews, and lead video pre-screening interviews.
With more regulations and guidance in the near future, AI can be used as a tool for promoting inclusivity in the workplace. In the meantime, it continues to be an invaluable asset for recruiters who are seeking to make their recruitment processes more efficient, accurate, and effective.
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Author
Gary Espinoza
Gary Espinoza is a copywriter with over 10 years of experience in software development, web development, and content strategy. He specializes in creating high-quality, engaging content that drives conversions and builds brand loyalty. He has a passion for crafting stories that captivate and inform audiences, and he's always looking for new ways to engage users.