AI

Artificial Intelligence, or AI, is the latest development in the world of computing. It refers to the ability of computers to seemingly think for themselves and is made of neural networking and other modern computing technologies. AI is influencing every field of human endeavours, including manufacturing, communication, pharma human resource management, or HRM. In HRM, the use of AI based recruitment is improving the selection of employees, among several other benefits. This article takes a look at the various ways the technology can improve the recruitment process.

Advantages of AI-based recruitment

Let’s first consider some of the advantages of using AI in recruitment:

  • Improved efficiency

First and foremost, AI can make the whole process of recruitment faster and more efficient. That is particularly beneficial in a country like India, where many posts get hundreds of applications. Using AI can help save valuable time for HR professionals by filtering many applications that fail to meet particular criteria.

  • Less biased

Even the best HR professionals are susceptible to unconscious bias, which can keep the composition of your workforce from becoming diverse while being unfair to certain sections of society. AI can help reduce the impact of such bias in hiring decisions. However, the lack of bias is only possible if the bias is not built within the program itself, and thus, the algorithms should be scrutinized carefully to ensure it is without bias.

  • Data-Driven Information

Data with businesses is increasing exponentially, and it can be mined for information, which is often the most valuable asset. However, data mining can be a complex activity, and AI can help in this by providing data-driven insights. Such insights might not be visible to people but can help improve the way HR professionals evaluate the suitability of employees.

  • Advantageous in selecting gig employees.

As per the National Institute for Transforming India or NITI Aayog June 2022 report on the gig economy, the gig workforce is capable of increasing to 2.35 crore by 2030. (Source: Decoding Jobs Sectoral Report 2023′ by Taggd). Gig or contractual employment means that the recruiters must regularly look for new recruits to take the place of existing gig workers. AI can help optimize the process of recruiting gig workers while still leaving room for further improvement.

  • Improved identification of the best talent

AI can help easily identify the candidates whose skills and experience best meet the job requirements and employer preferences.

  • Candidate feedback

The advantages of AI are not limited to employers but also extend to candidates. While it will help get the best candidates, it can help HR provide quick yet valuable feedback to all candidates. Such feedback can help even those candidates who have not been selected learn what they are lacking.

  • Analytical predictions

AI can use past data to assess the chances of potential success of various candidates.

  • Scalability

AI technologies are particularly beneficial to larger enterprises due to their ability to handle large numbers of applications in almost no time. Where a large number of vacancies are to be filled out of an even larger number of applications, AI can do it in a much more efficient manner than the HR team doing it in conventional ways.

  • Continuous Learning

One of the biggest advantages of using AI in recruitment is that it will continue to improve itself over time, continuously refining its selection by learning from previous decisions. Please note that the historical data used by AI may become a double-edged sword as it can actually make AI more biased.

  • Cost-effective

Using AI in recruitment can also be cost-effective in that it will reduce overall HR costs by optimizing the recruitment process, reducing the resources required, and diminishing the impact of recruitment on operational costs.

Some disadvantages of using AI in recruitment

While AI offers valuable advantages when used in the recruitment process, it also has some drawbacks, including the following:

  • Bias

As mentioned above, AI will only be without bias if they are not built to algorithms or due to historical data. If any such bias enters the decision-making process of AI, then it might actually amplify the bias. If you have multiple HR professionals recruiting in the traditional manner, they might check each other’s bias, but making decisions based exclusively on a particular AI system will have no checks in place.

  • Lack of Human Judgment

It is never best to let AI make the decisions as it may fail to capture many nuanced qualities that HR professionals might consider consciously or unconsciously but that don’t find their way into resumes.

  • Loss of Personal Touch

When used exclusively, AI can lead to a loss of personal touch and communication that is currently part and parcel of the recruitment process. While AI can generate feedback, it lacks a human element unique to one given by an HR professional.

  • Ethical Concerns

While AI can help reduce personal bias, it can also create its own bias, and that can affect the chances of many Individuals finding a livelihood.

  • Legal Issues

Since it is possible for AI to grow discriminatory, it can attract legal challenges as the enterprise will fail to offer equal opportunities to people from all sections of society.Β 

Tips for making the best use of AI in recruitment

It’s safe to consider AI as a potent tool capable of dynamically improving the recruitment process. However, to get the best of its advantages, it must be combined with HR professionals who use it as their tools instead of following AI suggestions unthinkingly.Β 

Further, instead of building AI in-house, businesses will do well to instead use recruitment outsource providers using the technology. You can use job portals using AI for this purpose.

Apart from that, it’s also crucial to consciously monitor the information produced by AI against various biases and inaccuracies.

Other uses of AI

While AI offers valuable advantages when used in recruitment, it is also a valuable technology in many other ways. According to Decoding Jobs Sectorial Report 2023′ by Taggd, expertise in AI is highly in demand in several sectors like automobiles, IT, Internet businesses, Banking, Financial Services and Insurance (BFSI), Pharma, etc.

Wrapping up!

The hiring platforms like Taggd use AI-based technologies to help recruiters and the best-talented candidates find each other. Taggd has an experience in over fourteen industries. They have already helped in hiring over half a million employees (Source: Taggd Capability Deck).

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