AI for Hiring: Bridging the Gap Between Talent and Employers

Artificial intelligence (AI) is reshaping the recruitment, hiring, and overall human resources landscape. According to Gartner research, 81% of HR leaders have explored or implemented artificial intelligence (AI) to improve their organization’s process efficiencies.

Leveraging AI for hiring requires thoughtful planning and consideration. While AI tools can drive efficiencies and improve the candidate experience, among other benefits, a human touch and relationship building between recruiting teams and candidates remain essential to the hiring process.  

Whether your organization is considering AI tools for hiring or already has AI-powered recruitment technology in place, learn more about benefits, concerns, key features, and tips for successfully integrating AI solutions.  

Table of contents:

• The evolution of AI in recruitment
• Benefits of using AI for hiring
• Key features of AI-driven hiring tools
• Addressing concerns about AI in hiring
• Future trends: What’s next for AI in recruitment?
• Tips for integrating AI into your hiring process

The evolution of AI in recruitment

AI is seeing widespread adoption and is bringing new advancements to businesses across industries. However, AI recruitment software has been used to automate some HR processes for years.

Here are some of the many milestones in the history of AI in recruitment:

• Resumix (acquired by HotJobs in 2000) launched in 1988 as one of the first resume parsing tools, with the ability to read resumes and highlight specific keywords, work experience, and education
• Job posting sites including CareerBuilder and Monster debuted in the 1990s and integrated with  ATSs to improve applicant sourcing
• Talent assessment tools such as eSkill, Criteria Corp, HighMatch, and SkillSurvey first launched in the early 2000s, automating pre-employment testing and reference checks
• AI-powered video interviewing software including Hireflix, Jobma, and Spark Hire, came to market in the 2010s
• ChatGPT was released to the public in 2022 and saw record-breaking adoption across industries and use, including in recruiting to help with tasks such as writing job descriptions and interview questions

Benefits of using AI for hiring

When used effectively, AI offers recruitment and hiring managers many advantages. A survey of 1,068 HR professionals from Tidio found that nearly 67% of HR professionals believe that using AI brings many benefits and has a positive impact on the recruitment process.

Efficiency in candidate screening

According to a survey of 1,688 HR professionals by the Society for Human Resources Management (SHRM), 85% of HR professionals who use AI to support recruitment and hiring say it saves time or increases efficiency.

In the absence of AI and other recruitment automation tools, recruitment and talent acquisition teams often spend hours manually reviewing applicants—many of whom are unqualified, leading to lost time and resources. With more efficient screening, recruiters and hiring teams can minimize repetitive tasks and focus their efforts on the most qualified individuals.

Some ways AI can automate candidate screening include:

• Reviewing all applicants and identifying the most qualified candidates to share with the hiring team
• Sending talent assessments to job seekers as soon as they apply to evaluate their skills, competencies, and personal characteristics
• Scoring talent assessments and ranking individuals based on overall outcomes
• Sending automated, pre-approved emails to applicants who aren’t moving forward with the process
• Sharing links to a scheduling tool to seamlessly coordinate initial interviews
• Facilitating reference and background checks toward the end of the hiring process

Objectivity and unbiased hiring

Organizations are increasingly turning to AI tools to help support objectivity in their hiring efforts. According to a survey from Talent Board, among talent acquisition teams who plan to purchase AI technology, 79% plan to buy tech that removes bias from application and screening processes.

Certain information on an individual’s application or resume, such as a specific school name or a candidate’s age, can trigger bias in a recruiter. For example, a recruiter may favor an applicant who graduated from their own alma mater, even if the candidate isn’t the most qualified.

When used correctly and ethically, AI algorithms can source and screen candidates based on their skill sets, experience, and qualifications, while excluding data that may lead to unconscious bias, such as name, gender, age, and education. As a result, this approach can help build more diverse workforces and increase the quality of hires by ensuring recruiting teams don’t overlook qualified individuals based on certain demographic indicators.

Predictive analytics for candidate success

Predictive analytics use historical data to make informed predictions about the future. AI-powered talent sourcing tools leverage predictive analytics to evaluate past data to help recruitment and hiring teams identify the right candidates for specific jobs and determine likely future performance.

Some of the data points analyzed to find and prioritize top candidates include skills, qualifications, success indicators among existing and past employees, and top performing talent sourcing channels. This data enables organizations to save time by only focusing on individuals most likely to succeed and optimize their recruitment budget by only investing in sourcing channels that deliver successful hires.

Enhanced candidate experience

A CareerPlug survey featuring insights from 500 job seekers found that 81% of respondents say a positive hiring process experience influenced their decision to accept an offer from their current company. When manual steps are in place throughout the hiring process, this can lead to a lengthy, frustrating candidate experience.

By embracing AI tools, organizations can improve the recruitment experience and increase the likelihood of qualified talent accepting job offers.

AI can help enhance the candidate experience by:

• Sharing personalized job recommendations and matches with individuals based on their skills and experience
• Sending emails to job seekers as soon as they apply and either acknowledging receipt of the application or sharing next steps
• Automatically answering questions using chatbots and related technology
• Streamlining candidate communication and interview scheduling  
• Decreasing overall hiring time by automating tasks throughout the process  

Key features of AI-driven hiring tools

A wide range of AI tools are available to support the hiring process and AI technology continues to evolve and expand. Below, we’ve highlighted a few common features in AI-driven hiring tools.

Chatbots in recruitment

Some organizations are embracing chatbots to drive candidate engagement. According to a Talent Board survey of 350 HR and talent acquisition leaders, 51% of respondents cite a significant improvement in candidate satisfaction as a direct result of implementing their chatbots. Companies that leverage this technology typically include a chatbot directly on the organization’s careers page.

Chatbots can provide real-time guidance and answer frequently asked questions, rather than requiring prospective team employees to wait for an answer from a team member. If necessary, chatbots can escalate an individual’s questions or concerns and connect them with a member of the hiring team.

Some ways chatbots can be used include:

• Guiding job seekers directly through the application process
• Matching individuals or sharing recommended roles based on an individual’s skills
• Answering questions related to the hiring process and timeline
• Sending automated links to assessments as soon as candidates apply
• Using chatbot data to analyze common questions and challenges to improve the candidate experience

Resume parsing and matching

Many applicant tracking systems (ATS), recruitment platforms, and talent management software solutions include AI-enabled capabilities to automatically interpret resumes, cover letters, job applications, and, in some cases, social media profiles. While AI tools have seen increased adoption in recent years, 2019 research from Jobscan found that 99% of Fortune 500 companies were already using applicant tracking systems to scan resumes at the time.

Through resume parsing, machine learning algorithms scan or evaluate resumes to identify keywords most relevant to the job description, role, and required skills. To increase the chances of success with this type of AI technology, write thorough job descriptions that feature keywords related to your target job seeker. Include relevant keywords in the job title, list of responsibilities, and required skills sections of the job description.

Video analysis tools

In addition to reviewing resumes, companies are also using AI to analyze video interviews. This technology can either be used to evaluate video interviews with the hiring team or to conduct and analyze one-way video interviews using pre-set questions.

A ResumeBuilder survey of more than 1,000 employees involved in the hiring process found that 43% of respondents will use AI video interviews by 2024. However, employers still understand the importance of human recruiters in hiring, with 85% of respondents saying AI can help provide recommendations on candidates but final hiring decisions should be left to people.

Using AI-powered video analysis tools, an algorithm reviews the interview recording to understand an individual’s qualifications and predict their likelihood of success.

Criteria taken into consideration by video analysis tools include:

• Communication skills
• Word choices
• Tone of voice
• Body language
• Communication skills
• Level of interest

Addressing concerns about AI in hiring

AI tools offer many benefits to recruitment and talent acquisition teams. However, as is the case with any new technology, some concerns need to be addressed to ensure tools are used effectively and support a positive candidate experience.

A few concerns to address include:

• Bias and fairness. While AI can help reduce human biases during the hiring process, some AI algorithms have been found to discriminate based on race, gender, and disabilities. New York City recently implemented a first-of-its-kind law that requires employers to complete a bias audit before using an AI tool for hiring decisions. When incorporating AI into your hiring process, selecting tools that have been developed and trained with ethics and bias in mind is essential to supporting a fair process.
• Privacy. AI tools may collect and store candidates’ personal data without their consent or knowledge, which could violate privacy laws. When implementing AI tools, confirm which privacy and security measures are in place to protect personal data. Also be transparent about your organization’s use of AI by communicating with prospective team members about which AI tools your team uses and how the tools collect and analyze an individual’s data to inform decisions.
• Striking the right balance between AI and human touch. The recruitment and hiring process offers candidates a glimpse into the employee experience. However, a survey of 3,107 U.S.-based employees by CareerBuilder found that 71% of respondents believe automation in the job search and hiring process makes it impossible to know if the company’s culture is the right fit for them. Because of this, AI should be used as an assistant or supplement to your recruitment team, not a replacement.

Future trends: What's next for AI in recruitment?

AI adoption shows no signs of slowing down and will continue to have a significant impact on how organizations manage hiring and recruitment.

Some AI recruitment trends to expect in the coming years include:

• Continuous learning and AI model improvement. AI models learn through exposure to increasingly large and varied data sets. When evaluating potential AI recruiting tools, make sure they’ve been trained on enough clean data to help your recruitment. The AI developer may also continue to train and test new versions of the AI to work through any bugs in the system.  
• Expanding the role of AI in employee retention and development. In addition to supporting more efficient hiring, AI tools are used by HR teams to improve employee retention and development. For example, AI tools can analyze employee engagement or exit interviews to identify trends that lower employee engagement or increase turnover. And AI-powered talent development tools can help match workers with the resources they need to improve their skillsets.
• Integration with other HR software and systems. While some AI tools are standalone solutions, managing several siloed technologies can be overwhelming. Integrating these tools with other HR software such as applicant tracking systems and human resources information systems (HRIS) can help HR leaders have a more comprehensive view of their talent management strategy, drive efficiencies across the employee lifecycle, and ensure they have workers with the right skills.

Tips for integrating AI into your hiring process

Improving your hiring process and integrating AI tools is an ongoing effort. Consider the following tips to effectively embrace AI tools and develop your hiring strategy.

• Choose the right tools for your company's needs. Select the right tools for your company by determining a budget and outlining your hiring pain points. Challenges may include time-consuming candidate review steps or negative feedback about the hiring process. Identify and implement AI tools that will help your team overcome these pain points and ensure the hiring process is as efficient and engaging as possible. When evaluating different AI tools and solutions, consider factors such as cost, features, ease of use, customer service, and customer reviews.
• Train your HR team to use AI tools effectively. Schedule training sessions for your recruitment team to use AI tools securely and make the most of their features. Record training sessions to share with team members who can’t attend ,and include the videos in onboarding sessions for new HR employees. Centralize recordings and any other relevant training resources in a shared team drive or on the company intranet so team members can access them as-needed.
• Continually review and refine your hiring process. Many AI tools feature actionable data to help your team measure recruitment effectiveness using metrics such as time and cost savings and candidate engagement rate. Leverage these metrics to regularly review your overall process and the value of your AI-powered hiring tools and identify areas for improvement. Also keep track of new trends in the AI hiring space to ensure your organization embraces the latest and most impactful technology solutions.

Bridge the hiring gap with Upwork

While some hiring steps can be automated by AI tools, human expertise and guidance remains an important factor in the recruitment and hiring process. If you’re looking for additional support with your hiring efforts, consider enlisting the help of a recruitment expert.

Skilled independent recruitment specialists are available on Upwork to help your team identify, implement, and manage AI tools while maintaining a human touch throughout the hiring process. If you’re looking for a full-time recruitment specialist, you can also initiate contract-to-hire working relationships through Upwork’s end-to-end full-time hiring solution.

Talent Marketplace™ is another way to achieve your hiring goals and access diverse independent talent. Engage skilled independent professionals from around the world with more than 10,000 skills across a wide range of specialties. Leading companies leverage talent from Upwork to quickly fill skills gaps, adapt to evolving business needs, and reduce operational costs.

‍

Disclosure: Upwork is an OpenAI partner, giving OpenAI customers and other businesses direct access to trusted expert independent professionals experienced in working with OpenAI technologies.

Upwork does not control, operate, or sponsor the other tools or services discussed in this article, which are only provided as potential options. Each reader and company should take the time to adequately analyze and determine the tools or services that would best fit their specific needs and situation.