What Does AI Mean for Hiring and Recruiting?

The artificial intelligence (AI) revolution is upon us! Before we know it, robots will soon replace humans in every job, rendering people completely obsolete. 

We’re kidding, of course. 

But AI is already bringing huge changes to the technology we use to run our businesses. While the technology is still in its early stages, new tech startups are launching every day to get in on the AI gold rush. 

The problem is that many business leaders are having a hard time determining which AI technologies can provide real results for their businesses and which technologies are simply capitalizing on all of the marketing “buzz” around AI, but not delivering meaningful business outcomes. 

The challenge becomes even trickier when it comes to hiring and recruiting – an area that AI software can either help or harm in significant ways. So how do you make sense of it all?

In this guide, we’ll break down the basics of AI technology in hiring and recruiting.

What is artificial intelligence (AI) software?

Artificial intelligence software is a kind of computer program that can be taught to mimic advanced human abilities like reasoning and problem solving. It’s more complicated than that, but in layman’s terms: computer scientists feed a program large amounts of information in order to get it to “learn” how to think like a human and carry out tasks as instructed by a human. 

How is AI software being used today?

At this point, you’ve probably tried ChatGPT, one of the most popular AI tools. ChatGPT is an advanced chatbot designed to respond to users’ questions using conversational dialogue. 

ChatGPT is a sophisticated tool that uses machine learning to answer its users’ questions and perform tasks for them. ChatGPT can be used for assisting with writing emails, planning a trip, providing a recipe with the food you have in your fridge – and more! The possibilities are nearly endless. 

When it comes to hiring, you can use AI programs like ChatGPT to do things like:

• Write effective job postings
• Come up with interview questions specific to certain roles
• Write emails to candidates 

Hiring software companies have started integrating this and other types of AI functionality directly into their programs.

For example, CareerPlug recently launched an AI job posting tool to our system where users can simply hit a button to generate a job description. The tool can help employers create thorough and effective job descriptions quickly and conveniently that attract more applicants than regular job postings.

Other applicant tracking systems have incorporated AI as a means for parsing candidate resumes and even communicating with and ranking candidates as they apply. It’s estimated that around 70% of companies are currently using AI in their hiring processes.

What are the benefits of using AI in hiring?

AI can save you tons of time when it comes to content and communication! Trying to communicate effectively and quickly is something that many people dread, so having an AI assistant handle all your communication, from job postings to emails, can be a dream come true. 

If you’re experiencing high-applicant volume, some AI tools can help you weed out candidates that don’t have the necessary skills to do the job. Plus, you’ll be able to contact applicants faster, which means you have a better chance of engaging your highest-quality candidates before someone else does. 

What are the drawbacks of using AI in hiring?

If used improperly, AI in recruiting can create a poor candidate experience and damage your employer brand.

We’ve seen a rise in hiring tech startups that sell users on “AI assistants” and “virtual recruiters” promising businesses that their AI chatbots can have complex conversations with candidates on their behalf. 

But a closer look often reveals that the AI in question is nothing more than simple “rule-based chatbots” that use keywords to trigger a limited number of pre-written responses – but it’s important to note that these rule-based chatbots are NOT built on advanced conversational AI technology like ChatGPT. This means that hiring and recruiting companies marketing these chatbots as “AI assistants” can sometimes be misleading.

Simple, rule-based chatbots are nothing new. You probably recognize these chatbots in online customer service settings. They’re limited in how you can interact with them, and if you don’t get the answer you need, the experience can be incredibly frustrating because you don’t have the option to speak to a human. Now imagine putting your candidates through that experience.

We already know that 60% of job seekers will quit in the middle of filling out applications if they’re too long or complex. By requiring the candidate to interact with a chatbot to apply, you’ve added more time and complexity to their candidate experience – which could potentially backfire for your employer brand.

Our advice: Be sure to do your due diligence and try out these AI hiring software solutions that promise too much before you commit to using one. Try it out from the candidate’s perspective. You might find that it’s hurting more than it’s helping.

AI and discrimination

The information fed into AI comes from humans, and we humans, often have unconscious biases that impact our decision making. Many tools are trained on data about your existing workforce. This may seem fine in theory, but that data can reflect existing systemic biases. As one article puts it, “The bias is embedded in the code.”

When it comes to AI evaluation tools like quizzes, games, and video interviews, neurodiverse candidates or candidates with certain disabilities may be given a lower score that doesn’t accurately reflect their true capabilities or ability to succeed in a role.

Are there legal concerns about using AI in hiring and recruiting?

Since there is potential for AI algorithms to make discriminatory decisions that violate existing employment laws, it’s no wonder that using AI in hiring raises legal concerns. Data and privacy concerns are also on the rise, and employers need to be mindful of disclosing whether they are using AI during their hiring process. State legislation around the use of AI increased sixfold from 2023 to 2024. 

The Equal Employment Opportunities Commission (EEOC) published their own guidance for U.S. employers and best practices for complying with federal employment law when using AI in the workplace.

Legal experts anticipate that employers may also be held responsible the actions of AI software vendors if the employer has given them authority to act on the employer’s behalf – making it all the more important for employers to be discerning about the software they use in their hiring practices.

What is the difference between AI and automation?

It’s hard to envision a future in which the entire hiring process will be completed by AI from start to finish. Considering that the people you hire on your staff are the lifeblood of your business, it’s not exactly an appealing proposition to remove real-life human decision-making from the process entirely. 

That’s why we advise business owners to be cautious of any hiring software that claims to use AI for most (or all) of the hiring process and instead invest in a solution that’s more strategic about which parts of the hiring process should be automated by technology and which ones shouldn’t. 

Automations are software tools that don’t try to “think” like a human, but simply automatically perform all of the tedious administrative tasks that come with hiring. Hiring automations save you time without cutting you out of the decision-making process or creating a poor candidate experience.

One example of a task that should be automated is interview scheduling. 

Typically, once you’ve selected the applicants you’d like to interview, you usually have to spend time emailing back and forth or playing phone tag and waiting on them to return your call. Plus, it can take multiple touchpoints to coordinate an interview time that works for everyone, slowing down your hiring efforts. 

Now that’s a process that shouldn’t require a hiring manager’s valuable time and attention. Let the robots handle that one. You can use an automated interview scheduling tool like Autopilot, which comes built into CareerPlug Premium. 

Learn more about how automated interview scheduling works in the video below. 

Conclusion

We’ve only begun scratching the surface of what artificial intelligence can do for a hiring process, but it’s important for businesses to be smart about how they choose to implement this new technology. It’s a good idea to automate only the tedious parts of hiring, but don’t automate the parts that matter most – getting to know your candidates, evaluating them using a proven hiring process that results in the right hires, and creating a great candidate experience that protects your employer brand.