The Impact of AI on Recruiting: A New Study on the AI-First Approach

Michael Dunne
Michael Dunne

Artificial Intelligence helps organizations improve how they recruit, through a superior understanding of people’s skills, capabilities, and experiences, as well as a better understanding of talent in general in relevant labor markets. Harnessing AI for recruiting is one of the most significant trends in talent acquisition since the rise of job boards on the Internet almost a generation ago. And independent, third-party research is substantiating the impact and significance of this major secular trend.

Talent Tech Labs, a leading analyst research firm focused exclusively on evaluating talent acquisition technologies, recently released a report called “An Introduction to AI-First Recruiting.” The paper cuts through the hype around AI and analyzes how an AI-first solution “will have a profound and transformative impact on Talent Acquisition and how companies recruit.” This research goes over key AI concepts, how AI is being used today to improve talent acquisition efficiencies, as well as future trends.

The concept of AI-first recruiting is explored in detail. It’s contrasted with other efforts (such as adding an AI component to a software tool as an afterthought, or just plain old “AI-washing”). The paper talks about using providers who are intrinsically invested in AI and define themselves as AI companies, with development, hiring, and roadmaps guided by efforts to permeate AI in a solution.

The paper advises buyers to “to check whether AI is part of the ‘DNA’ of a system… to test a firm’s underlying models against multiple domains or scenarios.”

And the research goes further by discussing AI ethics and preventing bias from corrupting AI-powered processes. The paper finds that “thoughtfully applied AI can be a force for good.” Examples include using “Equal Opportunity Algorithms” to prevent bias; employing diversity dashboards to identify deviations; and “AI models that allow companies to ‘hire for potential’” enabling “firms to discover talent for roles that certain individuals may have historically been excluded from.” So, you can drive diversity with the candidate experience.

This research reviews outcomes already being achieved in organizations from implementing an AI-first solution. For example, the paper talks about improvements most organizations want to realize with their recruitment processes, including faster time to candidate interview; reduction in time-to-hire; reduction in cost-to-hire; and improved campaign response rates. However, the paper also drills down on gains in specific areas around recruiter efficiency, sourcing efficiency, candidate site improvements, and diversity.

Talent Tech Labs, meanwhile, held a virtual briefing on “AI in Practice: An AI-First Approach to Recruiting.” In this event (get the recording here) the research team discusses their findings with talent leaders of major firms who are in the process of applying AI to their recruiting processes. This session goes over AI tools and technologies being deployed, how practitioners confirm what is real (versus AI-washing), as well as the actual impact of innovation and how bias is mitigated.

With the need to raise talent acquisition efficiencies, and with all the innovation rapidly unfolding, this Talent Tech Labs research will prove valuable to organizations looking to dramatically improve how they recruit and manage talent.

 

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