Numerous industries have embraced artificial intelligence (AI) in recent years, including recruitment. And with new capabilities being showcased by the likes of ChatGPT, the implementation of AI looks set to continue.
However, excitement about AI’s potential in talent acquisition is still tempered by concerns, especially among candidates who fear being dismissed by a machine or algorithm before their application is reviewed by a recruiter.
In this article, we examine the hot topic of AI in recruitment, exploring the opportunities it presents, the challenges it poses, and how it is already being leveraged to optimise processes.
Understanding AI in recruitment
The AI recruitment industry is currently valued at $590.5 billion, following a 64.45% growth rate from 2020 to 2023.
Despite this growth, recruiters and employers should still be mindful of candidate sentiments towards AI integration in talent acquisition. Many recruiters may only prefer to use AI in the early stages of recruitment for tasks such as:
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Sourcing qualified candidates
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Screening applicants
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Automating interview scheduling
As such, when it comes to hiring, AI is best placed to automate monotonous tasks, not replace human judgement. Like other technological advances, AI is a tool that promises to heighten efficiency and free up time for human workers’ creative and critical thinking.
The benefits of AI in the recruitment process
As with other industries, there are many opportunities for AI to optimise processes in recruitment, saving employers time and money in the process. Here are some of the key benefits that you could leverage by harnessing AI in recruitment.
Reduce time to hire
One of the biggest advantages of AI in recruitment is its potential to save time when it comes to filling open positions. By automating repetitive, high-volume tasks like creating job descriptions, screening candidates’ CVs and cover letters and scheduling interviews, AI can streamline much of the hiring workflow.
This allows recruiters to focus their efforts on more complex and higher-value activities like talent evaluation, interviewing, and making offers to candidates. With this improved efficiency, the time it takes to fill an open position can be reduced significantly.
Cost savings
Hiring isn’t just time-consuming; it can also be expensive.
By using AI to minimise the time and effort spent on repetitive tasks, businesses can reduce the intensity of the talent acquisition process on hiring managers, thereby making potentially substantial savings and opening the possibility of reinvesting in other key areas.
Mitigate bias
One of the biggest challenges when it comes to recruitment is cutting bias from the equation. We all have biases, whether purposeful or unconscious, and that can have serious repercussions in recruitment.
As a result of biases, businesses can end up lacking the diversity they need for creative and innovative ways of thinking, while strong candidates could miss out on opportunities. When properly trained on unbiased data, AI-based systems can work to mitigate potential bias and create a fair and consistent experience for all candidates, no matter their demographic.
Enhance candidate experience
Another common problem candidates face when applying for roles is a lack of clarity and consistency from prospective employers. Sometimes they get ghosted, sometimes the communication from the hiring team is not up to standard, and sometimes things just get lost in translation.
With the help of AI, employers can implement clearer, more streamlined processes that make it easier to keep applicants informed of their progress throughout the hiring process.
Boost quality of hires
AI has the potential to process high volumes of data and provide real-time insights that can be used to optimise numerous business processes, including talent acquisition.
Used correctly, these capabilities can be used to increase the quality of hires. This can be done by analysing candidates and suggesting those most suitable for a specific role based on a data-driven approach, helping human recruiters come to a final decision.
Challenges and considerations related to AI in recruitment
While AI can undoubtedly help to optimise hiring processes, there are still factors employers and recruiters need to consider alongside its implementation. Let’s take a look at some of the challenges associated with leveraging AI in recruitment.
Data privacy
One of the main concerns with AI in recruitment is data privacy and security. AI systems need lots of candidate data to be effective, including what’s on their CVs, personal information, and potentially sensitive details.
Organisations using AI must therefore make sure they are in compliance with data protection regulations, such as GDPR, and maintain strict access controls. Getting this wrong could have serious consequences for the organisation.
Training and upskilling
Another consideration for organisations looking to use AI in recruitment is that they will need to provide proper training for their existing employees to ensure they can make the most of the tools available. As the technology develops, so too must the learning and development programmes for recruiters.
Using AI in recruitment
AI is already being utilised in various ways throughout the recruitment process, with more potential uses on the horizon as its capabilities develop. Below we’ve outlined some of the most common ways AI is being to optimise traditional hiring processes.
Sourcing candidates
Algorithms and machine learning can be used to source potential candidates through automating searches across job boards, databases, and social media platforms. This provides recruiters and hiring managers with a list of both active and passive candidates, based on their job title, industry, experience, location, and any other relevant criteria, that might otherwise not have been considered.
CV and applicant screening
One of the first steps in most recruitment processes is sifting through CVs and job applications based on, among other things, keywords and work experience matching what is listed in the job advertisement to find candidates suitable for interview.
With the help of AI, this can be done faster and with improved levels of accuracy. AI is already being used by many organisations to analyse CVs and identify the skills, qualifications, and experience of applicants, saving hiring managers lots of time in the process.
Assessing candidates
AI can be used to help assess candidates, whether that’s through behavioural assessments or skills testing. The data generated from these assessments can be analysed by algorithms to pinpoint a candidate’s strengths and weaknesses, along with personality and behavioural traits.
Conducting interviews
While most candidates wouldn’t be comfortable with an interview being conducted solely by artificial intelligence, the technology can still be used to streamline the interviewing process. That’s because AI can be used to process and analyse candidate’s answers much quicker, providing insights into their tone, demeanour, emotional state and suitability for the role.
In addition to this, AI is also being used to help make interview notes. This is especially useful given the rise in video interviews in recent years, making it easier to identify top candidates.
Onboarding
After the hiring process is complete and a candidate has accepted an offer, AI can be utilised to create engaging and personalised onboarding experiences for new hires, based on their skills and any identified knowledge gaps.
For example, this could include:
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Introducing them to the organisation and its culture
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Helping them navigate their first days on the job
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Streamlining the overall onboarding process
AI-powered onboarding could also tailor training materials and resources to match the individual needs of each new worker.
Download the complete How to improve the quality of job applications you receive report for more insights and tools to help you hire smarter in 2025.