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How AI in Recruiting can Influence HR

Rebecca Koch, Senior Director Talent & Culture APAC, BD [NYSE: BDX]

Rebecca Koch, Senior Director Talent & Culture APAC, BD [NYSE: BDX]

For more than 80 percent of the companies, AI is a strategic priority for their business today. With further digitalization, the use of AI will rise significantly in the coming years. It will be only a matter of time until AI finds its position as a standard tool in HR functions.

In the past years, we have already seen multiple recruiting tools using AI entering the market. The dominant use case of AI in recruiting so far is the automation of processes, followed by new ways of finding talent.

Automation of processes, especially, makes sense in case of repetitive or high-volume tasks like candidate screening or background checks. Some AI-based recruiting tools compare candidate CVs with job requirements, reducing the number of candidates to review by filtering out those who do not qualify. Other AI tools allow companies to tap into new candidate groups by offering new ways of identifying candidates. As an example, some tools screen social media profiles and other websites, compile the information, and compare it with job descriptions, being able to present new, potential candidates to recruiters.

These new tools will have a major impact on the HR function, with most people seeing four major advantages of the use of AI in recruiting:

Fastening recruiting processes: As AI tools take over repetitive and high-volume tasks, the recruiting process can be reduced by a significant amount of time.

Saving costs: Not only will a fastened recruiting process save time,but also decrease the need for external agencies, lessen the number of wrong hiring decisions, and reduce the volume administrative tasks. All these benefits will further reduce recruiting costs.

Increasing candidate quality: AI will identify new pools of candidates and filter those who qualify. With a bigger pool of qualified candidates, the probability increases that the final hire has superior quality and fit to the job.

Reducing biases: Setting up correctly, AI can reduce biases by filtering out information that historically has led to underrepresentation of minority groups in recruiting decisions. But the use of AI will have a much bigger impact on HR than just on speed, cost, quality, and unbiased recruiting processes.

Focus on more important aspects: As AI tools reduce the time recruiters spend on repetitive tasks, it allows them to focus on important human aspects of recruiting such as reviewing soft skills, selling the job to the candidate, and building the employer brand.

Build new competencies: Implementing AI tools require HR to build new competencies—but it also offers a chance to do so. Skills in the digital area and data analytics are underrepresented in most HR functions, so this is an easy way to develop and grow.

Drive data analytics and prediction: As HR develops new competencies and AI offers more data, HR should grab the chance to identify ways to make predictions using that data. It might be able to forecast a candidates’ decision, allowing HR to apply corrective actions to increase the candidates’ job acceptance rate or to continue the dialogue with other candidates. By screening market data, AI could help to forecast turnover or identify future needed competencies. Having such information in advance will create a significant competitive advantage for companies.

The applications of AI in recruiting are manifold, and even more so in HR. Without using AI tools, companies will face a significant disadvantage in the future that is hard to compensate. But the use of AI will only unfold its giant options for competitive advantages, if applied in the right context. It requires an agile organization and associates that are adept to change and ready to develop new competencies. HR has the historic opportunity to play a major role in that transformation. It will be interesting to see who takes it.

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