Considering replacing your HR team with AI? Here's what's wrong with this idea
We currently exist in an era where the demand for swift and error-free outcomes is ubiquitous. Therefore, AI is becoming a pervasive force across various industries, ranging from space exploration to the recruitment processes within companies. With each passing day, our fascination for this technology deepens, and AI itself evolves rapidly, much like a child acquiring new knowledge daily and moving closer to perfection. Take recruitment for instance.
AI has seamlessly integrated into tasks such as resume evaluation, aligning candidates with suitable job profiles, and streamlining the hiring process. While AI has undeniably expedited procedures, most of us are wondering - Can it consistently make accurate decisions and replace human judgment entirely?
Driven by economic constraints and compensation restrictions, smaller companies are dismantling their hiring teams, and larger firms are laying off their recruitment talents. However, is this right strategic move for your company? To find answers, we spoke to Daniele Merlerati, Chief Regional Officer APAC, Switzerland, Baltics at Gi Group Holding, to delve into the integration of AI and the essential need for human intervention, exploring where and how it fits into the equation.
AI: An engagement boost, not a threat!
The integration of AI into recruitment isn't a new concept. Pre-existing technologies, such as Applicant Tracking Systems (ATS) and Resume Parsing Software, have been streamlining and expediting processes for decades. Although AI is still evolving and hasn't experienced widespread adoption in talent acquisition and the recruitment industry, its potential impact on this sector is considerable and extensive.
AI holds the capability to revolutionise candidate sourcing by automating routine tasks traditionally handled by recruiters. This automation allows recruiters more time and energy to engage with candidates, conduct thorough assessments of their suitability for a role, and make more informed decisions.
"From navigating vast databases and screening resumes to conducting technical assessments for essential skills, mitigating biases, reducing sourcing time, crafting relevant job descriptions, and even initiating connections with candidates, AI can streamline and enhance the efficiency of the entire candidate sourcing process. As AI technology progresses, it is poised to become a valuable tool for talent acquisition specialists, providing support in recruitment processes and contributing to increased speed, efficiency, and fairness," noted Merlerati.
AI and recruitment: Trusting the process with a human touch
According to a Totaljobs poll, job seekers exhibit a lack of trust in the decision-making abilities of artificial intelligence in recruitment. If we talk about numbers, job seekers seem cautiously supportive of using conversational AI tools like ChatGPT for specific tasks, such as creating job adverts (38%), refining adverts to remove biased language (36%), screening CVs and applications for a human recruiter to shortlist candidates (36%), and generating interview questions (34%). But only four in ten (42%) believe that the proper and responsible use of AI will ultimately contribute to a fairer recruitment process for applicants.
In light of these findings, the Chief Regional Officer APAC, Switzerland, Baltics at Gi Group Holding, advises keeping in mind that "the effectiveness of any tool lies in how we use it. Ideally, optimal results emerge when AI is applied with human oversight and complemented by skills-based hiring practices, ensuring a fair and equitable hiring process."
He emphasised that AI's ability to swiftly analyse vast datasets and match candidates with job requirements outpaces that of human recruiters. This acceleration allows recruiters to focus on more strategic elements of the hiring process. Additionally, “AI-driven sourcing enhances hiring quality by minimising bias in candidate evaluation. Algorithms, guided by data-driven decisions, help mitigate human prejudices, fostering a more impartial assessment of candidates' skills and qualifications. However, amidst these advancements, human intervention will always play a crucial role,” he said.
Trust or bust: Managing bias in AI-driven hiring
When talking about trust, it is also essential to address potential biases. After all, while AI strives to eliminate human biases, machines are only as unbiased as the data they are trained on. Algorithms inherit and may amplify existing societal biases if the training data includes imbalanced demographics or discriminatory practices. Recognising that recruitment significantly impacts both individuals and organisations due to the crucial role that the right talent plays in an organisation's success, decisions about managing this process should not be solely driven by considerations of efficiency and cost.
Daniele Merlerati advised, "To overcome the limitations of AI tools in recruitment, we must incorporate not only human oversight in the decision-making process but also regularly monitor and update AI systems to adapt to evolving hiring trends, ensuring continued fairness."
He further emphasized the importance of using transparent algorithms that are clear and comprehensible, enabling recruiters to understand and question AI-driven decisions. Additionally, “maintaining a focus on the candidate experience and allocating saved time to aspects requiring a human touch is imperative. Equally critical is training recruiters to effectively use AI tools and processes, ensuring the optimisation of this technology in a fair and efficient manner,” Merlerati highlighted in his conversation with People Matters.
HR's path to AI recruitment prowess
The key to resolving most challenges lies in knowledge expansion and development. To enable HR teams to proficiently incorporate AI in recruitment, companies should conduct hands-on training sessions covering AI fundamentals, specific tools, and their applications in recruitment. “These training programs should feature simulated scenarios, providing recruiters with opportunities to practice using AI tools in real-life recruitment situations within a controlled environment,” advised the Chief Regional Officer APAC, Switzerland, Baltics at Gi Group Holding.
Given the rapidly evolving nature of this field, a one-time training event may not suffice. Therefore, ongoing training programs are essential to keep HR teams updated on the latest AI trends, tools, and best practices. Daniele Merlerati also recommended, “Establishing feedback loops between users of these tools and AI tech providers, creating mechanisms for HR teams to share experiences, challenges, and successes, fostering continuous improvement in the use of AI technologies.”
Furthermore, with the integration of AI and ML technologies and the incorporation of additional AI-powered tools such as recruitment bots, predictive analytics, and video interviewing tools, a comprehensive technological ecosystem has emerged for the modern recruiter. This integrated approach optimises recruitment processes, making them more efficient, objective, and adaptable to the changing requirements of the workforce, concluded Daniele Merlerati.