Rainbow colored AI

Artificial Intelligence in Recruiting

The use of artificial intelligence, or AI, is fast becoming a more common practice among both individuals and businesses. AI chatbots, such as ChatGPT, allow users to ask questions and get assistance with tasks they need to complete. Businesses are increasingly using AI to automate repetitive tasks, analyze data, improve customer service, and raise overall productivity. According to a Techjury article outlining AI statistics, 35% of companies are using AI and 42% of companies are exploring AI for its implementation in the future. The article also notes that, while more larger companies are currently using AI, a growing number of smaller companies are starting to consider AI technology that they can incorporate into their business strategies. One use of AI that could be especially beneficial for both larger and smaller companies is in the area of recruitment.

How is artificial intelligence used in recruitment?

The recruiting process can be time-consuming and laborious, especially for smaller companies, who often have one person filling multiple roles within the company. Weeding through all of the applications and resumes to find qualified candidates for a job can take weeks, leaving positions unfilled and companies struggling to keep up with the workload. Additionally, because the number of available jobs currently exceeds the number of candidates, recruiters are working under tight time constraints to find and hire the best possible candidates before another company can snatch them up. On the other side of this, job seekers have many complaints about how long the hiring process takes, as well as the lack of communication and feedback they receive from the hiring companies. AI can streamline the recruitment process and automate some of the menial and repetitive tasks that are bogging down recruiters. It can essentially scan through applications and resumes that a company receives, as well as other online sources, to identify skills and qualifications that match the job being filled. This means that the potential candidates are narrowed down without a recruiter needing to look through hundreds of resumes.

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How does artificial intelligence help in recruitment?

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There are many ways that AI can help throughout the recruitment process. Initially, it can generate clear and concise job descriptions that attract job seekers. Once applicants have submitted resumes, AI technology can analyze them to discern which candidates have the key skills and qualifications a company is seeking. There is even technology that uses algorithms to search for potential candidates who haven’t applied for the job, and tools such as Workable’s AI Recruiter that can begin searching for candidates as job descriptions are being written. An article on Unleash gave examples of how AI is used most effectively in recruitment, including conducting background and reference checks, using AI for interviews, and using AI to conduct internal searches for qualified candidates. Additionally, much of the technology used in recruitment includes tools to aid recruiters throughout the entire hiring process and beyond.

How many companies use artificial intelligence in hiring?

The use of AI in the hiring process is certainly on the rise, especially among larger companies. Forbes cites a study that found that 99% of Fortune 500 companies use AI technology to aid them in the hiring process. While many businesses don’t have the wherewithal to utilize AI technology to this same degree, a Computerworld article mentions some recent studies that found 35% to 45% of businesses are anticipated to use some form of AI to assist them in their hiring process this year. Even if they aren’t already using this technology, more and more companies are expected to invest in AI for their recruitment and hiring needs in the future.

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What type of artificial intelligence is used for recruitment?

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There are a variety of options for companies interested in using AI for recruitment. Indeed outlines specific types of AI that are used in recruitment. Screening software is one of the more popular types because it allows companies to narrow down the pool of candidates by screening through resumes to search for keywords or skills. Online interviewing tools are another form of AI that are used to analyze an interviewee’s behaviors and answers to determine if they would be an ideal candidate for the job and company. Outreach tools are beneficial for companies who process a high volume of new hires because it allows recruiters to quickly and easily send out information and schedule interviews with several candidates at once. Chatbots are increasingly being used as well because they allow candidates to have their questions answered and stay informed and updated. One of the lesser used types of AI are text generators, but they can still be a useful tool because they can assist a company in writing or generating job descriptions. One popular kind of AI technology is applicant tracking systems (ATS), which is computer software that helps with the recruitment and hiring process. ATS often combines multiple types of AI to help recruiters process and hire applicants more quickly and efficiently. Another type of system companies can use is candidate relationship management (CRM) system, which is a computer software program that targets qualified candidates who have not applied for the job. Some companies use these systems independently but utilizing both the ATS and the CRM in conjunction with one another offers a more thorough approach to the recruiting and hiring process.

What are artificial intelligence hiring tools?

There are a vast number of AI hiring tools to choose from based on what a company needs them to do. SelectSoftware Reviews prides itself on collecting a large amount of unbiased data and reviews to determine the top AI recruiting tools. They look at different categories of AI software to ascertain the top choices depending on a company’s size or needs. They detail why that particular software was chosen, costs (if known), who uses that program, pros and cons, reviews, and who it would best serve. FetcherhireEZManatal, and Textio have all been identified as top choices for companies of all sizes, but each varies in what it specializes in doing. PymetricsParadoxFindemeightfoldHumanly, and HireVue were chosen as the top choices for midsize to large companies or companies that have high-volume hiring needs. AmazingHire is another top AI tool that works for a variety of companies, but notably smaller companies or even individual freelancers.

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What are the limitations of artificial intelligence in hiring?

Woman taking notes

As with any kind of technology, there are limitations and disadvantages to using AI in the recruitment and hiring process. Although using an AI recruitment process can remove human bias when choosing candidates, it still has the potential to discriminate. The Equal Employment Opportunity Commission (EEOC) has released guidance for companies who are using this technology to hire and monitor their employees. While many companies have policies and procedures to prevent discrimination of the human variety, the rise of AI use necessitates that they also put proper safeguards into place to ensure that they are not inadvertently violating civil rights laws. AI use can also be discouraging for candidates who feel like they are only interacting with a computer rather than being able to talk with a person. This can also lead to concerns about data privacy and what kind of data companies are collecting and how they are using it. Both the lack of human interaction and the concerns about data privacy can have a negative impact on a candidate’s opinion of the hiring company. Using AI also increases security risks and technical issues, both of which can be detrimental to companies that rely heavily on technology or collect a lot of sensitive information. Another limitation of the AI recruitment process is that the software, tools, and training can be cost prohibitive for many businesses. Some businesses simply don’t have the overhead necessary to obtain and implement AI technology.

What is the future of artificial intelligence in the hiring process?

The use of AI in the recruitment and hiring process is only expected to grow as more and more businesses invest in different types of tools and AI recruitment companies. A literature review on AI in recruitment revealed that this has been an upward trend for many years. An article entitled, “United States Online Recruitment Market 2020: Increasing Use of AI Powered Searches Driving Market,” published in M2PressWIRE in May 2020 predicted that the online AI market would increase by $3.52 billion by 2024. However, according to a recent article published in Tech Monitor, spending on AI systems is anticipated to reach $154 billion by the end of this year, and $300 billion by the year 2026. Because of this, more types of AI software and AI focused companies are being developed all the time. One such company are AI talent agencies, which focus on recruiting and building a network of top talent with AI expertise. Startups and other AI companies can easily connect with and hire the best candidates for the positions they need. Another type of company on the rise are AI recruitment agencies. These agencies use AI to do the work of recruiting qualified candidates for businesses by finding, evaluating, matching, and then managing them. Many of these kinds of AI recruitment agencies are especially popular for matching freelancers with companies and individuals who need contract work or projects completed without hiring a long-term employee. Both AI talent and recruitment agencies are expected to grow as AI use increases.


How much does artificial intelligence recruitment software cost?

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There is a wide variety of cost options for AI recruitment software, depending on the type used and the scope of what it can do. Many companies are not upfront about pricing, instead requiring those interested to contact them or obtain quotes. Some programs offer monthly options, others are priced annually, while still others provide both of these options along with alternative choices tailored more to individual company needs. Software can start as low as $15 per month for smaller companies and lesser features but can also run as much as several thousand dollars a month for software with more capabilities or for companies with a large number of employees. Although companies may find that what works for their budget doesn’t necessarily meet their recruitment and hiring needs, there are certainly an immense number of possibilities from which to choose.

How can artificial intelligence improve the recruitment process?

There are benefits to using AI to improve the recruitment process. Using it to automate tasks that are repetitive and time-consuming, such as searching through resumes for qualified candidates, frees up time for recruiters to focus their efforts on other areas of the hiring process. It can also efficiently analyze data to identify market trends, company hiring patterns, and other such factors that companies consider when making job and hiring decisions. Chatbots can be used to interact with potential candidates, allowing them to schedule interviews, ask questions, and learn more about what’s happening throughout the hiring process. AI technology can also be used during the interview process, not only to evaluate candidates facial expressions, behaviors, and answers while they are being interviewed, but also to administer preliminary interviews to assess potential candidates. There are many time-saving benefits to using AI technology throughout the recruitment process.

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How does Workable AI Recruiter work?

AI computer chip in front of motherboard

Workable, a talent acquisition software that helps companies throughout the hiring process, uses AI Recruiter to read through a job description as it’s being created. AI Recruiter then instantaneously searches through thousands of online profiles to find the best possible candidates before a job is even posted. It does all of this automatically in the background for every job. It also runs ad campaigns on social media platforms such as Facebook and Instagram to reach more potential candidates.

While the use of AI has the potential to streamline the way companies hire their employees, this technology is not without its drawbacks and can certainly have a negative impact on the recruitment and selection process. Companies need to consider whether the pros outweigh the cons when deciding which, if any, AI technology they will incorporate into their recruitment and hiring process. Without question, AI appears to be a significant part of the recruiting processes of the future.