As the world settles more into its coexistence with AI, the applications of such technologies will continue to expand.
A recent survey by HubSpot shows that AI is helping sales and marketing professionals save over two hours a day. Of course, this time savings spans across departments, particularly among busy HR teams with demanding recruiting responsibilities.
As more HR teams adopt AI technologies, there are a few things to consider. While such tools introduce efficiencies, not everything is peachy all the time. Let’s explore some positives and negatives of incorporating AI into your hiring efforts.
Weighing the Factors
It’s worth noting that many new and emerging AI tools are on the market that can assist with hiring. Some are better than others, and the effectiveness disparity between technologies can be immense. However, in general, AI seems to benefit most companies and individuals who properly leverage it.
Data provided by IBM shows us that about 42 percent of companies use AI to improve recruiting and human resources.
Should the other 58 percent jump immediately on board? Let’s discuss that by first outlining some pros of using AI technology in HR.
Pros
Reduced Time-to-Hire
AI saves considerable time by automating a number of once-manual tasks. Such tasks include:
- Application screening
- Interview Scheduling
- Preliminary discovery
- Searching for qualified candidates
- Ranking Prospects
These automated processes can significantly reduce the time it takes for a candidate to progress through each hiring phase. However, as we will see, some downsides can accompany these efficiencies.
Applicant Screening Accuracy
Algorithmic analysis of specific skills or qualifications can shorten the time of sifting through tens, hundreds, or even thousands of applications/resumes to seconds.
Moreover, AI technologies can offer in-depth skills testing, quickly disqualifying candidates who don’t meet an established skill or aptitude standard.
What once were time-intensive, up-front applicant screening processes can now be entirely automated.
Improved Applicant Experience
Let’s not forget that applicants also want a quick and painless hiring process– perhaps even more than the hiring team.
Many AI technologies focus on candidate experience, helping your organization benefit from an excellent first impression and keeping top talent engaged.
Cost Savings Potential
Depending on hiring volumes and how technologies are used, AI can provide considerable cost savings to HR departments by freeing time, improving department-wide organization, and helping employers avoid risky hires.
For HR departments with fixed budgets, these savings can be further invested into processes or used to hire better talent.
Adapting to Current (and Future) Technology Landscapes
Similar to when the Internet first emerged, companies that adapt to significant technological innovations are more likely to succeed in the long term. While AI may not immediately impact an organization’s bottom line, it could greatly impact it in the coming years. It’s a good idea to stay abreast of new and emerging technologies (even internal technologies) that are benefiting competitors.
Now, let’s address some of the cons (or potential risks) of using AI in HR.
Cons
Reduced Role of Human Intuition
Hiring can be very nuanced. Depending on the industry, job requirements, or other factors, handing over all candidate selection keys to an algorithm can lead to suboptimal outcomes. There are times when resume screening technology rejects qualified candidates simply because the exact targeted language or keywords are not used.
Some job seekers are already wising up to AI resume screening tactics and are optimizing their resumes to appeal to such technology. While this isn’t necessarily bad, it creates a potential advantage for some that has nothing to do with actual qualifications or job aptitude. For employers, this opens up the possibility of losing out on great talent simply because some candidates didn’t write or format their resumes in a way AI prefers.
For this reason, it is wise to exercise caution when relying solely on resume-sorting technology. Some level of human oversight and intuition is almost always beneficial.
Data Security Risks
AI tools are almost exclusively data-driven, and in the context of hiring, this data often includes the personal information of prospective candidates.
While AI software companies have security protocols to help protect their customers, each organization that utilizes AI is responsible for the data it interacts with. Data privacy laws are growing stricter with time, and collecting and storing vast amounts of data through AI could expose employers to liability if they aren’t careful.
Regulatory Concerns
The EEOC and DOJ are starting to zero in on the use of AI in employment.
The EEOC held a public hearing in January 2023 to examine the use of automated systems, including artificial intelligence, in employment decisions. Since then, lawsuits have emerged against employers, and the EEOC is taking more notice of potential discrimination in automated processes. As many of these issues are brand new, a new pathway of precedence is being set on a case-by-case basis– something employers will need to stay updated on.
Bias Potential
It can be hard to eliminate the biases from within machine learning systems.
Recently, a candidate submitted two nearly identical job applications, which were subsequently screened by AI technology. In one of the applications, the candidate modified their birth date to appear younger. Out of the two nearly identical applications, the one with a later birth date was accepted, and the other was rejected.
There have been many cases of such things happening. These biases can be difficult to combat when dealing with algorithmic processes and pose legitimate discriminatory concerns.
Conclusion
When it comes to hiring processes, AI technologies seem to provide a net benefit. However, knowing the negatives can help organizations make necessary adjustments and avoid potential pitfalls. As is especially true in human resources, technology is a great aid but never a complete replacement for human oversight and discernment. There will always be HR processes that should remain (at least somewhat) human.
For more information on how to improve hiring efficiency, reach out to us today.
