THE IMPACT OF ARTIFICIAL INTELLIGENCE (AI) ON

THE RECRUITMENT AND SECTION PROCESS

SUBMITTED BY: SHRUTI GUPTA

UID: 214093

MANAGEMENT RESEARCH PROJECT CMS0509PJ

TYBMS SEMESTER V
ACADEMIC YEAR: 2021-2022

PROJECT GUIDE:
DR. NEELAM SHETTRY
(Full Time Faculty, BMS)

ST. XAVIER’S COLLEGE, MUMBAI (AUTONOMOUS)

5, MAHAPALIKA MARG, MUMBAI, MAHARASHTRA,
400001

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 ACKNOWLEDGMENT

In the occurrence of the research completion, I express my gratitude to my supervisor

who has provided me with his benevolent guidance and support. At certain times she has
provided me with her undying support, constant guidance, and motivation and has
encouraged me to give my best to the research up until the point of completion. Her
guidance and support empowered me with proper direction and adequate knowledge of
the research topic. Along with her, I am thankful to my friends, and family members who
were the source of inspiration in certain difficult periods of doubt and monotony as they
offered constant support and assurance so that I keep on the efforts to complete the
research work successfully. Also, I am obliged and thankful to the responsive survey
participants and colleagues who have answered all my queries and doubts with patience
and kindness. My journey as a bachelor’s student would have been incomplete without
the precious guidance and pedagogical support provided by my college faculty therefore I
am thankful to the entire faculty of St. Xavier’s College, Mumbai. I dedicate this work to
my parents as they have been the source of my motivation in pursuing this course of
study.

Lastly and most importantly, I am eternally thankful to the lord for providing me with the
strength, focus, determination, and knowledge to effectuate the concept into fruition.

25th September 2023

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 DECLARATION

We hereby declare that the project work entitled “The Impact of Artificial
Intelligence(AI) on the Recruitment and Selection Process” submitted to St.Xavier’s
Mumbai is a record of an original work done by me under the guidance of Dr. Neelam
Shetty, Full Time Faculty of Management Studies, St.Xavier’s College Mumbai. The
results embodied in this thesis have not been submitted to any other university.

Dr. Neelam Shetty,

Full-Time Faculty of Management Studies

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 CERTIFICATION

This is to certify, Ms. Shruti Gupta, currently in TYBMS of St. Xavier’s

College (Autonomous) Mumbai has successfully completed this dissertation
on Management Research Project on this topic:

“The Impact Of Artificial Intelligence (AI) On The Recruitment And

Selection Process”

Under the guidance of

Dr. Neelam Shetty,

(Full-Time Faculty of Management Studies)

Dr. Neelam Shetty External Examiner Dr. Rajendra Shinde

(Project Guide)

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 TABLE OF CONTENTS

Sr.No Title Page No

1 Executive Summary 6

2 Introduction 7

3 Literature Review 10

4 Research Methodology 17

5 Analysis of Data 18

6 Major Findings 29

7 Conclusion 31

8 Recommendations 33

9 Limitations 34

10 References 35

11 Appendix 37

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 EXECUTIVE SUMMARY

Human resource management (HRM) is critical in today's businesses. They are the ones
who locate brilliant individuals, bring them in, teach them what they need to know, and
assist them in their professional development. HRM also provides feedback to employees
to assist them in doing a better job. With all of the new technological advancements,
businesses are under pressure to modify and update how they do things. The application
of artificial intelligence (AI) in organizations has undergone a significant shift in recent
years.

This report is based on research that included interviewing people, conducting online
surveys, and reviewing information from other sources to determine what is going on. We
discovered that while AI is being utilized in hiring, it has not yet taken over the entire
process. But it's coming closer, and individuals who hire new personnel are optimistic
about the shift. They do, however, have some reservations. They are unsure if AI can
effectively measure things like a person's soft skills (such as communication and
teamwork), and others believe that elderly individuals may struggle to transition to AI in
recruiting.

In a nutshell, HRM is a significant matter for businesses, and AI is changing how they
recruit people, but there are still some issues to figure out. People are largely thrilled
about it, but there are a few things to consider.

With many layers of study and data-gathering methodologies, this article attempts to
bridge the gap between curiosity, assumption, and conjecture surrounding the deployment
of AI in recruiting situations.

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 INTRODUCTION

Technology is transforming the way we do things in today's society at a breakneck pace.

One area where this is most obvious is in how businesses acquire new employees.
Computers, data analysis, and smart devices are being used to speed up and improve the
process. This implies that the traditional methods of locating and selecting the ideal
individuals for a job are changing dramatically.

Figure 1: Biggest Pros of Online Recruiting

Source: Statista

Online job searching has gone a long way in today's society, making it easier for job
searchers to discover the ideal position. This new method has several interesting tricks up
its sleeve, all geared at making the candidate experience more pleasant. It demonstrated
how electronic recruiting has evolved with new approaches to assist people like you in
selecting the best job more effectively. (Yoon Kin Tong’s, 2009)

When businesses are on a recruiting binge, they frequently turn to online applications.
Why? It's a quick and inexpensive approach to start your talent hunt. They can filter
through a large number of possible applicants without the requirement for urgent
face-to-face interactions.

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According to a 2017 SilkRoad research, they find internet recruitment quite beneficial.
It's a treasure hunt for passive job searchers who aren't actively hunting for work but
could be the perfect fit for a firm. So, to put it simply, internet job seeking is here to stay
and is a game changer.

One of the most popular themes in online hiring these days is how Big Data, Data
Analysis, and Artificial Intelligence might improve recruiting. AI, which stands for
Artificial Intelligence, is a rock star in this industry since it can greatly benefit
enterprises. AI is analogous to a super-smart computer program that can perform
numerous jobs on its own and manage large amounts of data effectively.

The concept of AI in recruiting isn't new; it was initially discussed in a conference paper
in 1956 by a man called John McCarthy.

According to a recent Accenture analysis, the use of AI in various industries would

increase the value of such companies by 2035.

AI is becoming increasingly crucial in how companies recruit new people, particularly in

IT and tech positions. This implies that technology is beginning to play a significant part
in the job search process. AI can assist with things like image recognition, data security,
and even making the recruiting process smarter and faster.

But there's still a lot we don't know about how successful AI is at selecting the right
person for the job, particularly when it comes to skills like being a good storyteller,
understanding emotions, being patient, and being creative. These abilities vary according
on a person's history and personality.

AI can assist HR managers in selecting the best candidates for a position. It simplifies
things and reduces paperwork for HR managers. HR managers have a difficult job since
selecting the proper individuals for a position is critical to a company's success. Using AI
for hiring is in line with current job market trends, and it also makes things operate better
and quicker. AI may be extremely intelligent, especially when taught to do certain tasks.
Using AI to choose personnel is thus an interesting prospect for the future.

According to a 2017 Deloitte survey, 38% of those polled said AI would be employed
much more in their employment during the next three to five years. In 2018, this figure
increased to 42%. AI in recruitment can assist in enhancing how job applicants and
employers communicate with one another, making candidates happier. People are
generally pleased with this method, giving it a rating of 9.8 out of 10. This is because AI

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can provide timely updates, and feedback, and assist job seekers in answering queries.
For candidates, the lack of this type of communication might be a major issue.

AI has altered the way HR departments manage hiring, making the process more
efficient. It assists in sorting through job hopefuls by utilizing technology. A resume
parser is a program that examines resumes and extracts relevant information. This
technology assists HR in making better recruiting decisions and accelerates the applicant
selection process. By comparing their talents and experience, AI may also match
applicants to job needs. It considers factors such as keywords, region, and education to
determine the greatest fit.

HR may discover more about applicants by checking their social media profiles or using
internet information-gathering tools. Artificial intelligence (AI) is the use of technology
to mimic human thought and anticipate prospective problems. AI is a huge deal in HR,
according to the Society for Human Resource Management (SHRM), and it is a top tech
trend. It can aid HR in three ways: work automation, decision-making, and functioning as
a helpful assistant or chatbot.

So, the purpose of this study is to determine how people feel about utilizing AI to recruit
a large number of people at once, particularly in Ireland. We want to see if it's a good
idea, especially for occupations that demand these difficult-for-AI-to-understand unique
abilities. These abilities may not immediately affect a firm's revenues, but they may have
a significant influence on things like employee happiness, how they perceive the
organization, and how well they connect with others in their profession.

AI is a new wave of technology that is being used to cope with all of the information that
is generated when a firm hires a large number of new employees. Normally, going
through all of this data and determining who is the greatest match for the position takes a
long time, often up to two months. During this time, job seekers frequently have no idea
what is going on with their applications.

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 LITERATURE REVIEW

The objective of this chapter is to demonstrate how the process of locating and choosing
the proper individuals for a position is critical to an organization's success. We'll look at
human resource management software, information technology, recruiting, and selection,
as well as artificial intelligence (AI). This literature study entails examining what others
have said about this subject. We'll summarise and debate the major themes from many
sources to provide you with a well-rounded perspective. Many writers and academics
have given their perspectives on how AI might help in hiring, but some have also
highlighted its downsides. We'll dive into these debates and investigate key hypotheses
along the way.

Relation between Information Technology and Recruitment.

For most businesses, recruiting and hiring new personnel is an ongoing activity.
Recruitment is the process of getting individuals interested in a position, whereas
selection is the process of selecting the best applicants for the job. These procedures are
intimately related to a company's market success. Recruiting the appropriate employees is
a major problem for businesses all around the world. As Finn and Dale (2003) pointed
out, how you bring in new people has a significant impact on how well your organization
performs, particularly in a competitive business environment. Companies are also curious
about who other organizations employ. According to Ripley and Ripley (1994, in Heraty
& Morley, 1998, p.663), the most difficult task for businesses today is locating the
best-qualified individuals while also satisfying their normal work demands. Employment
decisions taken early on have a significant influence on the organization's long-term goals
(Henderson, 2011, p.84).

As Aaker (1989, in Sangeetha, 2010, p.94) pointed out, how organizations conduct
recruiting and selection affects how they regard their staff, which is critical for keeping
ahead of the competition. To obtain an advantage over competitors, every stage in the
recruiting process must be carefully considered because improper hiring decisions can
have a detrimental influence on the entire organization. Carter (2015) contends that
employing the incorrect individual wastes time undermines team morale, and harms
customer connections and the company's culture. Now that we've established the
importance of recruiting and selection, let's look at the function of information
technology in both processes.

Companies use several strategies to pick staff. Previously, they employed very simple
ways to discover and recruit eligible individuals, such as newspaper advertisements,
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brochures, and recommendations from current workers. However, things have altered as a
result of Information Technology (IT). Many businesses nowadays utilize both traditional
and new approaches, such as advertising job opportunities in newspapers and offering
thorough information on their websites. Many organizations, for example, employ IT
systems that take resumes by email or online forms. The documents are then scanned and
converted into a basic format using Optical Character Recognition (OCR) technology.
The material is then read by artificial intelligence, which extracts vital information such
as the person's identity, talents, job experience, and so on. This data is then organized in a
database in a systematic manner. The system matches this information to the
organization's employment opportunities. If there is a match, the person is considered for
the job. If not, they preserve the information until suitable employment becomes
available (Singh and Finn, 2003).

Most arguments concerning the influence of IT on a firm's human resources center on

two key points: how it alters individual professions and how it affects the number of
people a company needs. According to Scott Morton (1991, p. 8), IT is a powerful
instrument that can alter information and assist organizations in a variety of ways, much
like the steam engine did during the Industrial Revolution. It goes beyond that, though,
because it allows individuals to work with models and ideas rather than simply real
objects.

Figure 2: Impact of Technology on Recruitment

(Source: https://focus.kornferry.com)

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To summarise, the use of information technology (IT) in recruiting has a huge influence
on how organizations acquire new staff. It has an impact on everyone in the organization
since it changes the way positions are advertised and applied for. This change in the
hiring process is intended to make it more efficient, cost-effective, and user-friendly.

Traditionally, recruiting was both expensive and time-consuming. Things have gotten
more simplified with IT. It has also made recruitment more efficient and convenient.
People can apply for employment online at any time, 24 hours a day, seven days a week.
This means that organizations will be able to manage a huge number of job applications
and job opportunities more efficiently. In essence, the use of information technology in
recruiting has changed how organizations locate and hire fresh talent, making the process
more efficient and people-focused.

Strategic Recruitment Process.

Finding the ideal people for a job has grown increasingly high-tech in today's work
market. We now employ automation to discover possible applicants and even conduct
video interviews to evaluate them, thanks to advances in technology. The employment
market is extremely competitive, and the top candidates seldom stay for long — on
average, they leave after 10 days. As a result, every organization seeks to capture their
interest and get them on board.

In this part, we'll look at how businesses choose the best individual for the position. We'll
look at how they develop strategies to recruit top personnel, plan for hiring, and
incorporate these initiatives into their entire business strategy. We'll also look at how
these employment procedures have developed over time.

Recruitment and Selection Criteria

Many of these studies emphasize the characteristics that a successful candidate should
possess. The applicant's skill set is one of the most significant attributes, according to
tech recruiters questioned by Campero in 2015. They feel that discovering brilliant
people is more about their abilities than the colleges they attend. Assessing abilities in the
IT business is generally simple, frequently including examinations or code evaluations.

Abraham et al. (2015) and colleagues suggested that obtaining the correct "fit" for a firm
is critical in the hiring process. They distinguish two kinds of fit: person-organization fit
(P-O) and person-job fit (P-J). P-O fit indicates that a person's traits are compatible with
the values and environment of the organization. When there is a solid fit between what

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the firm stands for and what the employees believe in, job happiness, dedication, and
productivity increase.

Another factor to evaluate is if the candidate is compatible with the company's culture.
Organizational culture refers to a company's common conventions, beliefs, and values.
Ethical behavior is crucial in this culture, and it derives from both formal (such as
training and codes of ethics) and informal (such as how coworkers and leaders act)
systems. As a result, it's critical to select people who not only have the necessary talents
but also fit in with the company's culture. Simply said, workers and the culture of their
organization impact one other's ideals. Onnekikami (2016) demonstrated that the suitable
applicant must not only have the necessary talents but also fit within the company's
cultural framework.

Selection Methods and HR Planning

Organizations must select the appropriate ways to hire employees based on the type of
job offered. Application forms, interviews, video assessments, assessment centers, and
formal examinations are examples of approaches that should be used consistently.

A well-structured staff management strategy, such as the one proposed by Huselid (1994,
in Siddique, 2004, p. 220), can aid in reducing employee turnover and improving
financial performance. A company's general strategy must be translated into precise rules
and practices for managing people, especially when it comes to recruiting and choosing
suitable staff.

Successful organizations today, according to Drucker (2002, in Siddique, 2004, p.220),

are competitive because they have great people resources and inventive ways of
managing applicants. To ensure long-term success, the recruiting and selection process
must be aligned with the organization's goals. This needs committed HR personnel as
well as effective procedures.

The primary purpose of human resource planning is to ensure that the correct amount of
people with the right talents are in the right occupations at the right time, all while being
cost-effective and efficient.

Artificial Intelligence and Recruitment

People conducting face-to-face job interviews and evaluations may make conclusions
based on their own sentiments or prejudices rather than following a fair and rational
approach. As a result, you may miss out on employing the top individuals for a job.

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Finding the appropriate individual for a position is critical to a company's success, thus
all businesses want to recruit people who are skilled and have a lot of potential.

Artificial intelligence (AI), as detailed in the book "PREDICTIVE MACHINES: The

Simple Economics of Artificial Intelligence" by Gans, Goldfarb, and Agarwal, has the
capacity to analyze large amounts of data quickly and make sound conclusions. AI is
employed in fields such as marketing, production, and, yes, even recruiting. It's no
surprise that many businesses are beginning to embrace AI in their hiring procedures to
improve efficiency and find new methods to locate outstanding employees. AI might
revolutionize how businesses hire new personnel. Using AI in recruiting not only saves
money but also helps both organizations and job applicants, making the entire process
more efficient. (2018) (Upadhyay and Khandelwal).

If potential applicants obtain intrinsic advantages from the use of artificial intelligence in
the recruiting process, they are more likely to apply for positions that match their profile
and preferences (van Esch et al., 2019). Organizations, on the other hand, employ
automation to improve staff planning and recruiting procedures. Technology has the
potential to improve the success of talent acquisition operations. 2018; Gupta et al.
Kaplan and Haenlein (2019) highlighted how analytical artificial intelligence may be
used in human resource management to help with CV evaluation and applicant selection
as cutting-edge application tracking systems.

A study conducted by Rodney (et al., 2019) advocated for the development and
implementation of artificial intelligence as a key component in the e-recruitment process.
Despite the fact that its current applicability is in the early stages of the application
screening process, job candidate worry over the use of artificial intelligence pales in
comparison to an applicant's position in relation to the employing business.

The suggested method uses demographic data such as age, gender, marital status,
education, and experience to predict future performance and retention of applicants.
According to Strohmeier and Piazza (2015), information extraction based on data mining
looks to be an effective strategy that might be used to acquire Résumé data during the
first screening step. Furthermore, they proposed an intelligent text processing approach
for sentiment analysis based on text mining; the test automatically extracts sentiments
and views from unstructured material and categorizes them as "positive sentiments" or
"negative sentiments."

AI approaches are based on modern AI-based decision support systems that are centred
on the Artificial Neural Network (ANN), which is thought to be very successful in
reasoning and learning capacities. ANN is based on machine learning and attempts to

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imitate human learning capabilities by capturing the parallel and dispersed nature of the
human nervous system (Lucci & Kopec, 2016). Huang et al. (2004) used the ANN
approach to the human resources selection system by evaluating a model designed to
assess management talent; they employed neural network learning to calculate each
candidate's score. In addition, Huang et al. (2006) employed artificial neural networks to
identify implicit knowledge and reported results that were beneficial in forecasting
candidates' future performance and supporting their assignment to appropriate roles and
projects.

Risk and Challenges of Using Artificial Intelligence in the Recruitment and

Selection Process

Understanding the intricacies involved with recruiting decisions is critical for recruiters,
HR executives, HR managers, and all those who make recruitment decisions. Though AI
appears to be a future technology, it is not without drawbacks. There are several
constraints and dangers that might impact the quality of the selection and screening
process. According to Arntz, Melanie Gregory, Terry Zierah, and Ulrich (2017) in their
journal on the risk of using automation, some of the major threats that come with using
AI in recruitment are data collection about candidates, giving fair and equal opportunities
to all candidates, providing feedback on selection, and so on. These are some of the risks
associated with employing AI-based software. Before using AI technology, every
organization should consider their needs and specifications.

It is undeniable that AI is playing a critical role in optimizing recruiting procedures. AI

solutions alleviate the strain of time-consuming and labor-intensive repetitive processes
such as sourcing, screening applications, and other administrative chores. Such
advantages will help to drastically reduce recruiting costs while also boosting recruitment
quality. Furthermore, AI will increase transparency in the recruiting process by reducing
human biases and improving job seeker opinions of businesses, hence improving firms'
image and brand. With all of these potential benefits, there is little question that the use of
artificial intelligence in recruiting and selection will progressively rise in the near future.

Huang and Rust (2018) grouped artificial intelligence into four categories in their paper
"Artificial Intelligence in Service": mechanical, analytical, intuitive, and sympathetic.
According to Huang and Rust (2018), whereas mechanical and analytical bits of
intelligence have largely replaced employment at the task level for some time, their value
is diminishing in favor of advanced intuitive and empathic intelligence. Furthermore,
although mechanical and analytical intelligence is task-focused, intuitive and
compassionate intelligence will interfere at the work level.

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In recent years, intuitive and empathic intelligence has grown fast, posing a challenge to a
wide range of problem-solving management and high-level occupations. Customer
service or self-driving cars? Chatbots are a few instances of such intuitive artificial
intelligence, whereas 'Replika,' an online personal artificial intelligence companion, is an
example of a real-world empathic intelligence application. Chui et al. (2015) conducted
research and predicted that even highly paid positions such as financial managers,
physicians, and senior executives might be replaced by AI in the near future.
Recruitment, like other occupations, will be vulnerable in the age of artificial
intelligence. It is expected that the use of AI technology in the HR recruiting and
selection process will grow at intuitive and sympathetic levels.

Intuitive solutions and Chatbots are utilized to interview and screen applicants' talents;
thus, in the near future, social, emotional, communicative, and highly interactive robots
with image and voice recognition technology will be used to conduct face-to-face
interviews with candidates. Khosla et al. (2016) investigated the use of social robots to
interview applicants by identifying tiny differences in their facial expressions and noises.
The robot assessed candidates' emotional and cognitive behavior using verbal and
nonverbal indicators, and the findings were compared to the organization's expectations.
Will artificial intelligence take over? AI is unlikely to completely replace the role of a
recruiter. It goes without saying that AI will be employed more broadly and more
effectively in the future. More imaginative human-machine integration will emerge at the
intuitive and empathic intelligence levels, but the human touch will always be required at
all levels. The growing reliance on AI technology will have a significant impact on
personnel acquisition and management roles in HRM fields. To summarise,
time-consuming administrative tasks like as sourcing, screening, and interviewing
applicants will be delegated to AI technology, freeing up recruiters and HR managers to
focus on strategic matters.

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 RESEARCH METHODOLOGY

We had a specific purpose in mind for our research. We wanted to understand more about
how businesses hire and select staff. Certain methodological procedures were taken to
accomplish this. First, we conducted a literature study on the subject of human resource
management, focusing on the recruitment and selection processes, artificial intelligence
in the recruitment and selection process, and the dangers and problems of utilizing AI in
recruitment and selection. tied to recruiting.

Following that, quantitative data were gathered using the interviews, and online
questionnaires were then analyzed. Our survey collected 12 respondents consisting of
various professionals from Human Resources backgrounds working in different kinds of
organizations. Individuals were approached through social media applications such as
WhatsApp, LinkedIn, etc. Our objective when circulating our forms was to ensure
diversity across our samples in terms of organizations as well as different roles within
human resources.

Research Objective

To study the impact of Artificial Intelligence (AI) on the recruitment and selection
process in India during the time period June 2023 to September 2023

Sub-Research Objectives

1. Assessing the adoption and utilization of AI in recruitment.

2. Analyzing organizational and employee attitudes towards AI
3. Examining Ethical Considerations and Legal Implications

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 ANALYSIS OF DATA
This section delves into the empirical examination of data collected via online surveys
and interviews. Each responder is designated by an initial, such as R1, R2, and so on, to
protect anonymity. These responders came from a variety of backgrounds, and everyone
has at least five years of experience in the recruitment industry.

The presentation begins with Table 1, which provides a detailed look at the respondents'
profiles. This table contains information on their roles and the organizations for which
they now work, giving context for the ensuing study.

The study is separated into three primary topics that arose from the responses of the
respondents. The first theme delves into the use and use of Artificial Intelligence (AI) in
the recruiting and selection process. Respondents offered insight on how artificial
intelligence (AI) techniques such as Applicant Tracking Systems, Skillset-based
Shortlisting, Interview Scheduling, and video interviews are used in recruiting.

The second subject digs into these recruiting professionals' thoughts towards AI. Some
see AI as a way to speed up and even improve the recruiting process, while others are
concerned about potential biases and restrictions.

The final subject dives into the ethical and legal consequences of AI in recruiting. This
includes conversations about the need of minimising prejudice and ensuring that artificial
intelligence supports rather than hinders the recruiting process.

In essence, this part provides a thorough examination of how professionals in the

recruiting industry view and interact with AI, giving light on both its promise and its
problems.

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Respondents Intitals Role Description Kind of Organization

R1 Talent Acquisition Finance Business

R2 HR Manager Fintech

R3 HR Generalist Import and Export

R4 Senior General Manager - Investment organization

HR

R5 HR Consultant Consultancy Organization

R6 HR Professional Product based Organization

R7 People Advisory Services Consultancy

R8 Program Co-ordinator Researcher and Professor

R9 Talent Acquisition Bank and Finance

R10 Recruitment Manager Telecom Service Provider

R11 Recruiter Global Professional

Service

R12 Recruitment and IT and Consultancy

Consultancy

Table 1: List of Respondents initials with their role description as well as the kind of
organization they are working currently

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ADOPTION AND UTILIZATION OF AI IN THE RECRUITMENT AND
SELECTION PROCESS

AI is being employed in the recruiting process in many organizations. This implies that
when people apply for employment, computers are used to help the employer decide who
to hire. ATS (Applicant Tracking Systems), which helps keep track of all job
applications, Skillset-based Shortlisting, which helps choose the right candidates based
on their skills, Interview Setup, which can help schedule interviews, and HireVue, which
allows for video interviews, are some of the AI tools they use.

Some respondents had conflicting emotions regarding the use of artificial intelligence in
recruiting. They view it as a means to speed up and maybe even improve the hiring
process, but they are concerned about a few issues. One worry is that AI may
unintentionally favor one group of people over another. It may prefer persons from
specific backgrounds, for example. Another concern is that it may overlook excellent
prospects simply because they do not fit into a tidy little box.

People are also encountering difficulties with these AI technologies. Technology can
make mistakes from time to time, which can be annoying for both job searchers and
employers. Furthermore, not everyone in the firm may be comfortable using these
technologies, so there will be a learning curve. In terms of risks, there is always the
possibility that technology will fail. Companies must exercise caution to ensure that AI
does not discriminate or make unjust judgments. They must also ensure that it aids rather
than hinders the recruiting process. So, while AI may be a useful tool in recruiting, it's
critical to use it intelligently and monitor how it's performing.

General Changes

Insights from consultants R5, R7, and R12 give insight on the changing viewpoints in the
field of human resources (HR) throughout time. Individuals who did not have a natural
aptitude for disciplines such as mathematics or finance generally gravitated towards jobs
in human resources. However, there has been a major slowing in this tendency in recent
decades. Because traditional concepts of the past no longer correspond with the varied
and dynamic character of the profession, the field of human resources has experienced
significant alterations.

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Consultant R12 emphasises the importance of technical improvements in the HR sphere.
Human resource professionals are quickly adopting innovative software solutions and
artificial intelligence (AI) capabilities designed expressly for HR needs. These powerful
instruments provide previously inconceivable answers. This adaption demonstrates the
profession's capacity to adapt to a new era defined by technology and innovation.

The shifting HR viewpoint reflects the changing scenario in the employment and
recruiting sector. HR responsibilities were once thought to be essentially administrative,
dealing with paperwork and compliance. However, as organisations see the strategic
significance of human capital, human resources has evolved into a more strategic and
advisory position.

This transition is not only a reaction to business developments, but also a purposeful
effort to improve organisational performance. HR workers may now use data-driven
insights to make educated decisions thanks to the advancement of AI and innovative
tools. AI systems, for example, may speed up the recruiting process by analysing massive
volumes of application data to quickly find the best applicants.

Furthermore, as R12 points out, the use of technology in HR is about more than just
automating duties; it's about allowing HR professionals to focus on high-value activities.
These may include efforts such as strategic workforce planning, talent development, and
employee engagement. This transition from administrative to strategic endeavors is
redefining the role of human resources inside organizations.

Professionals are recognising the need to remain up to speed with technological

innovations and adapt to the shifting needs of their work in this ever-changing world of
recruiting and human resources. This agility is essential for HR professionals in order to
successfully traverse the challenges of the modern workplace and contribute to
organizational success.

Utilization of AI

The majority of the respondents shared their beliefs regarding the significant
transformation of their profession, and it all revolves around data management which
means that all the decision-making in the future will be based more on data. At the same
time, R4 and R10 expect a fundamental shift in recruiters. They see recruiters delving
into data analysis, where their main focus would be on compiling, understanding, and
examining the data that are collected from various AI and automation tools.

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Respondents R1 and R9 believe that AI tools will help recruiters to focus more on
“value-creating tasks”. Based on their insights, recruiters would be dedicating more time
to strategic questions and building deeper connections with candidates through increased
individualized attention.

Respondent R12 worked in both recruitment and consultancy thinks that the role of
recruiter is slowly moving towards becoming more consultative in the recruitment
process, which is more favorable because it emphasizes that their ability to advise clients
is where they truly add value. R1 suggests that due to this shift recruiters will be able to
manage multiple recruitment processes parallely resulting in increasing their potential for
value creation.

Whereas R9 sees two alternative ways for the future of recruitment processes. The first
alternative is the anticipation of a fully automated approach which would be
advantageous for some entry-level positions and the other alternative is recognizing the
ongoing need for human interaction which is important.

Challenges

Attracting top-tier talent is a major problem in today's intensely competitive business

world. The study's respondents emphasize the importance of an organization's brand in
this endeavor. They realize the value of improving their employer branding initiatives and
how a strong brand may attract new employees. A strong employer brand not only
attracts candidates but also projects a favorable picture of the company, making it an
appealing place to work.

Despite the expanding use of AI in recruiting, several components of the employment

process remain strongly embedded in the human domain. While AI can do basic
candidate screening duties rapidly, it has limits when it comes to a more in-depth
examination of values and other complex criteria. This shortcoming highlights the lack of
a human touch in AI-powered recruiting, which offers a big difficulty.

Another daunting task is the pursuit of AI with human-like intelligence. This necessitates
a large quantity of data, complicated programming, and a strong structure. Furthermore,
ongoing examination and improvement of AI systems is required to guarantee that they
adapt and improve over time. The pursuit of human-like intelligence in AI is a frontier
that necessitates continual study and innovation.

In summary, while technology, particularly artificial intelligence (AI), plays an

increasingly important role in modern recruiting, the human aspect, such as company

22
branding and applicant assessment nuances, remains essential. The problem is to strike a
balance between using AI's efficiency and retaining the human touch in recruiting
procedures. Furthermore, the quest of AI with human-like intelligence is a lofty goal with
the potential to significantly change and improve the recruiting environment.

ATTITUDES TOWARD AI

In this section, attitudes toward the use of AI are presented. This section includes various
sub-sections, each focusing on various aspects.

General Attitude

All respondents agreed that Artificial Intelligence (AI) is clearly the future of recruiting,
but they also recognized that it has both pros and downsides. Respondent R7 emphasizes
AI's efficiency and time-saving benefits, emphasizing that it helps recruiters to devote
more of their attention to critical recruitment duties. R10, who works for a government
organization, expresses doubts about their organization's readiness for AI adoption,
indicating that further preparation is required.

R2 emphasizes the need to use many aspects when evaluating candidates in order to
reduce risks in decision-making. This implies that using a larger range of criteria for
applicant evaluation can assist in enhancing the quality of recruiting decisions. According
to R5, several parts of the recruiting market, notably executive search, remain extremely
traditional and conservative. This conservatism can be ascribed to a lack of incentives as
well as long-standing historical practises.

According to respondents from consulting firms, even small businesses are eager to
integrate AI in their recruiting and selection procedures. Some businesses are
aggressively using new technology in order to maintain a competitive advantage in the
talent acquisition environment.

For numerous years, the majority of respondents believe that the recruiting process has
stayed basically constant. They do recognize, however, that the emergence of AI is
currently bringing about much-needed transformation in the sector. This demonstrates a
rising appreciation for AI's transformational potential in simplifying and improving
recruitment practises.

In conclusion, respondents recognize AI as the future of recruiting, with an appreciation

for its efficiency improvements. However, several industries continue to face obstacles
relating to preparation and established practices. The rise of AI is considered as a catalyst

23
for change in an industry that has been largely unchanged for a long time. This changing
landscape indicates a rising recognition of the need to adapt and employ AI to improve
recruiting processes and remain competitive in talent acquisition.

Improved Efficiency

The Respondents, while recognizing the adoption of AI, seemed divided on whether it
truly improved efficiency. The majority expressed skepticism, suggesting that AI had not
significantly enhanced the speed of recruitment. It appeared that while the technological
advancements had brought accuracy to candidate assessments, the promised efficiency
gains had not fully materialized.

Many of the respondents view AI as a valuable tool that can significantly enhance the
recruitment process as well as make this process more effective and efficient. AI can also
do repetitive tasks and tedious documentation which can bring about great improvements.

Respondents who are working as recruiters believe that AI has increased efficiency like
job seekers can find employment more quickly; recruiters don’t have to do repetitive
tasks and they can focus on core tasks of the recruitment process. Also, AI can expand
their horizons when searching for potential candidates benefiting the organization in
discovering talented candidates.

Recruiters and Consultant based on their experience also mentioned that AI will not only
fasten the recruitment process but also increase its profits at the most as it shorten the
recruitment process. Nowadays reducing human intervention through the use of
automation can create more value for organizations.

Humans Still Needed

According to the replies obtained from specialists in the sector, the perception of AI
finding its way into the recruiting market appears to be mixed. While some recruiters,
such as R10, are concerned that substantial AI participation may reduce demand for their
services, the majority of respondents believe that some components of the recruiting
process will remain unaffected by technology. Individuals like R3 mirror this attitude,
emphasizing humans' unique capacity to identify nuances that go beyond a candidate's
skills, a practice known as "reading between the lines." They contend that this feature is
unique to humans and cannot be copied by AI.

R10 emphasizes the significance of human connection in recruiting, particularly in

properly transmitting organizational culture to applicants and assessing their suitability

24
with the firm. This personal touch is seen as critical in forging a true bond between the
organization and potential recruits. Furthermore, during important stages such as pay
negotiation, AI systems may not be ready to manage the complexities of discussions
successfully, necessitating human engagement.

A consultant from an IT firm offers an unusual point of view, arguing that while AI and
automation may potentially take over the entire recruiting process, it may not always
result in better results. This frame of view emphasizes the importance of a balanced
approach in which humans and technology collaborate to maximize their respective
capabilities. This convergence of human judgment with AI efficiency has the potential to
result in more successful recruiting procedures.

Finally, the perspective of AI's function in recruiting is multidimensional. While others

are concerned about its ability to completely replace human involvement, the general
consensus among professionals is that certain areas of recruiting require the particular
traits and insights that humans bring to the table. This emphasizes the necessity of
achieving a balance in which AI complements human knowledge, resulting in more
effective and sophisticated recruiting procedures that leverage the capabilities of both.
Future breakthroughs in this subject may continue to investigate how this delicate balance
between technology and human judgment might be optimized for the benefit of both
organizations and job seekers.

The Candidate Experience

A range of factors impact candidates' attitudes toward the use of artificial intelligence
(AI) in the recruiting process, including perceptions of fairness, the extent of personal
engagement, and the nature of the job role. Understanding the different viewpoints of
candidates is critical for organizations contemplating using AI in their recruiting
procedures.

Respondents unanimously agree that learning about applicants' AI experiences is an

important element of this evaluation. Almost every respondent said that knowing how
prospects perceive and interact with AI technologies throughout the recruiting process is
critical. In reality, each respondent's company is actively using some kind of technology
to assess applicant experiences.

Following additional discussion, one significant finding is that the majority of candidates
perceive AI technologies in the recruiting process favorably. Many applicants value the
concept of impartial evaluations, in which they are evaluated based on standardized
criteria, promoting a feeling of fairness in the process.

25
However, R10 offers a contrarian viewpoint, claiming that a significant proportion of
candidates prefer personal connections throughout the recruiting process. This preference
for a human touch may be due to R10's organization's use of less automated technologies
in their recruitment methods.

Overall, opinions on artificial intelligence in recruiting tend to be evenly divided. One of

the responders, a researcher, made the observation that applicants under the age of 35
tend to offer disproportionately favorable feedback when AI is introduced into the
recruiting process. Candidates aged 35 and up, on the other hand, had a more mixed
response.

Trust

When it comes to understanding attitudes towards AI, trust is critical, and it is especially
important in the field of recruitment. Balancing trust with AI capabilities is an ongoing
challenge and opportunity.

Some respondents, such as R11, believe that building trust in AI is not overly difficult.
They argue that trust in AI can be established if the tool consistently performs as intended
and produces reliable results. This viewpoint is frequently rooted in direct experience, as
those who have actively participated in the implementation of AI tools tend to have a
deeper understanding of how they work, leading to a higher level of trust in these new AI
technologies.

However, there is a divergence in opinion among responders. They emphasize that AI

acts within the limitations that are provided to it, which means that it does not always
guarantee making the right judgments. Even as we ponder the future possibilities of AI
technology, there is acknowledgment that AI may not always make impartial judgments.
R9, for example, raises the worry that AI may be incapable of detecting all viable
candidates, thereby excluding well-suited persons.

Another aspect influencing AI trust is recruiters' desire to keep total control over the
recruiting process. Senior recruiters frequently see this urge for control as a habit that
may change if the recruiting process itself changes. In summary, when AI is incorporated
into recruiting, the balance of power and trust may alter, and recruiters may grow more
comfortable relying on AI's skills while keeping oversight.

Finally, confidence in AI is a complicated component of recruiting. While some people

feel that consistent AI performance and comprehension can build confidence, others see
AI's limitations and potential biases. The demand for control in the hiring process also

26
has an impact on trust dynamics. As AI evolves and demonstrates its potential, it may
open the door for a more nuanced connection between recruiters and AI technology,
changing the future of recruiting practises.

ETHICAL CONSIDERATIONS.

While AI is helping streamline the recruitment processes, the following concerns remind
us of the importance of responsible AI development and implementation. It is crucial to
address biases and maintain transparency.

Potential Risks

Concerns about biases in AI during recruiting and selection procedures are very restricted
in India, although there is an increasing emphasis on the possibility of inherent biases in
AI systems used for hiring. Notably, there have been cases where AI has shown
symptoms of prejudice, such as in Amazon's employment process. This raises red flags in
the recruitment community.

One major concern voiced, as shown by R1, is that these AI biases may result in the loss
of highly competent applicants. If artificial intelligence systems are not constantly
monitored and updated, they may unwittingly create a job market that favors individuals
who perfectly fit every need in job descriptions, leaving little opportunity for those with
different abilities and experiences.

Furthermore, some recruiters have expressed concern that if AI is used at every level of
the recruiting process, candidates may become less genuine in their interactions. When
recruiters meet applicants in person, they have the chance to examine not only
qualifications but also character and cultural fit, which AI may struggle to grasp.

Another major worry with AI in recruiting is data security. AI systems rely on massive
volumes of candidate data, and as R1 emphasizes, protecting this information is a major
responsibility. With the frequency of cyber risks on the rise, organizations must
implement stringent safeguards to secure sensitive candidate data from external
incursions and breaches.

In conclusion, while AI biases are not currently common in Indian recruiting, there is
rising awareness of their potential presence. The key concerns include biases in applicant
selection and the necessity to safeguard the integrity of the recruiting process. As
artificial intelligence (AI) becomes more incorporated into employment practices,

27
organizations must address these concerns to maintain fairness, openness, and data
protection in recruitment procedures.

28
 MAJOR FINDINGS

AI's Potential Use in Recruitment

The study's findings demonstrate the huge potential of artificial intelligence (AI) in
tackling fundamental difficulties that organizations encounter during the recruiting
process. In this aspect, AI has various advantages.

To begin with, AI can undertake time-consuming and repetitive activities that recruiters
traditionally handle. The capacity of AI to handle massive volumes of data at rapid rates
while retaining assessment quality allows recruiters to move their emphasis to activities
where human judgment is essential. This frees up recruiters' time to focus on other
important tasks like employer branding, handling rejected applications, and connecting
with candidates currently in the recruiting funnel.

AI is also quite good at expanding the pool of probable candidates. It accomplishes this in
two ways. To begin, AI acquires a better knowledge of abilities and experiences that
match job opportunities through machine learning and deep learning. This enables AI to
detect qualifications that human assessors may have overlooked. Second, AI can scan
through a huge number of profiles, such as those on LinkedIn, to locate people with the
right talents and experiences. Recruiters may spend more time tackling other recruitment
difficulties by employing AI in these areas.

The advantages of AI extend beyond recruitment teams; they also aid organizations
facing these difficulties. Using AI, for example, might improve potential applicants'
views of a company, so enhancing employer branding efforts. Furthermore, by offering
ongoing contact and constructive feedback during the recruiting process, AI can enhance
the management of rejected candidates. This strategy enhances the possibility of rejected
candidates reapplying to the organization, which is especially important in today's
competitive labor market with a scarcity of competent workers.

AI offers potential in terms of maintaining impartiality and minimizing human biases in

recruiting procedures. According to the study, AI can considerably help to solve this
problem by improving objectivity. While AI can bring biases, these biases are caused by
the humans engaged in designing and applying the technology. In contrast to human
biases, which might be conscious or unconscious, AI biases can be discovered and
corrected with the appropriate experience and information.

29
Potential Obstacles and Strategies to Get Around Them

There are a number of significant obstacles and restrictions that need to be overcome
when integrating AI into hiring procedures. Concerns about potential risks related to data
quality, data privacy, and ethical considerations are among these challenges, as is the
level of technological knowledge among human resource management (HRM)
professionals, trust issues with regard to AI technologies, perceptions of AI as a threat to
the roles of recruiters, organizational readiness, and readiness.

The amount of technology expertise among HRM specialists is one important hurdle.
Their confidence in AI technology is directly related to this characteristic. According to
the report, HRM professionals may be less likely to accept AI-driven solutions if they
don't have a firm grasp of the technology. Reluctance to use AI technology may result
from this lack of confidence. Additionally, recruiters' readiness to accept AI may be
further diminished if they believe that AI poses a danger to their line of work and
devalues their knowledge. This vicious loop can make people reluctant to learn critical
information concerning AI, which will only serve to increase their mistrust of the
technology. Therefore, for effective AI adoption in recruiting, knowing and overcoming
this hurdle is essential.

The report also shows that a lot of recruiters are unaware of all the ways AI may improve
their jobs. For instance, human-inspired AI systems may help analyze applicant
interactions and interviews, analytical AI systems can help make more trustworthy
conclusions based on historical data, and humanized AI can increase candidate
involvement throughout the recruiting process. Recruiters may better comprehend the
benefits AI provides by learning more about its future uses, which will aid them in
overcoming their present difficulties.

Another hurdle to AI adoption is how ready organizations are to adopt it, however, this
barrier is unlikely to last long. Organizations are rapidly seeing the need to integrate AI
into their hiring procedures as the battle for competent workers heats up. According to
the survey, this shift has already started, meaning that businesses will probably have no
choice but to promote and ease the use of AI technology.

Finally, there may be hazards related to data privacy, data quality, and ethical issues.
Although they may not immediately impede the adoption of AI, these problems must be
taken into account by organizations and stakeholders after the process has started. The
duty of ensuring that these dangers are appropriately controlled and reduced rests with AI
technology developers and users.

30
 CONCLUSION

The adoption of artificial intelligence (AI) in recruitment processes was thoroughly

examined in this study, with a focus on the perspectives of 12 professionals who are
heavily involved in the hiring processes of significant multinational corporations (MNCs)
and governmental organizations in India. These individuals played crucial roles in key
hiring choices or actively participated in the recruiting process.

The study's findings shed insight into human resource managers' top goals when
considering the incorporation of AI into their recruiting procedures. The most important
of these criteria are information security and return on investment (ROI). In essence, HR
managers are motivated by the need to guarantee that AI systems are not only secure but
also provide demonstrable advantages to their particular organizations. Notably, the study
emphasizes that the use of AI is most beneficial when used in certain aspects of the
recruiting process, such as sourcing and initial screening. It is worth emphasizing that the
relevance and application of AI have shifted significantly since the commencement of the
COVID-19 epidemic, reflecting the changing environment of recruiting.

The study also dives into applicants' views and beliefs about AI's involvement in
decision-making. The online surveys and interviews elicited a wide range of replies, from
recruiters concerned that AI may leave their jobs obsolete to consultants who see AI as a
vital tool but not a complete replacement for human judgment. These different viewpoints
emphasize the delicate nature of trust and dependence on AI in decision-making. The
study emphasizes that perceptions on AI's dependability for decision-making are varied.

The research addresses the overall concerns connected to job displacement owing to
automation and the potential replacement of human labor by robots throughout the
debates. Interestingly, there is a clear distinction between individuals with administrative
and consulting backgrounds. Administrative professionals are concerned about job
security and the ultimate replacement of human positions by AI, but consultants are more
hopeful, seeing AI as a beneficial support tool that may reduce the strain of regular
duties. Nonetheless, both groups emphasize the pervasiveness of human involvement and
judgment in complicated decision-making contexts.

In conclusion, this study sheds light on the issues surrounding the incorporation of AI in
recruiting procedures. It emphasizes the significance of information security and ROI as
critical factors for HR managers, the expanding role of AI in recruiting, and the varied
perspectives of applicants and professionals toward the influence of AI on their work.
Finally, the findings highlight the importance of a nuanced and balanced approach to AI

31
adoption in recruiting, recognizing both its potential advantages and the persistent
importance of human knowledge and judgment in the ever-changing hiring market.

32
 RECOMMENDATION

This paper lays the groundwork for understanding the fundamental issues in current
recruiting procedures, how AI might handle these challenges, and the potential
roadblocks AI may face. According to the findings, due to increased competition for
competent personnel in the labour market, AI is positioned to play an increasingly
important role in recruiting. As AI becomes more widely used, future studies might look
at which sorts of AI solutions provide the most value to businesses. Furthermore,
comparing the quality of hiring made with AI to those made entirely by humans, both in
terms of value generation and the human experience, would be an interesting route for
further research.

The study's concentration on certain stages of the recruiting process relating to

recruitment and selection is one of its limitations. As a result, future studies may
investigate the opportunities and problems of using artificial intelligence in additional
stages of recruiting. Furthermore, given the significance of HR professionals'
technological skills, attitudes, and faith in AI for effective deployments, future studies
might look into ways to improve these characteristics.

In the future, AI may potentially replace all human involvement in recruiting, creating
serious concerns from both technological and non-technology viewpoints. What happens
if technology replaces all human connections in recruitment? What effect does this have
on individuals, society, and organizations? What happens when HR professionals' skills
are no longer in demand? Can artificial intelligence (AI) potentially alleviate the talent
shortage by automatically matching individuals to occupations that fit their abilities and
aspirations? These are crucial concerns that should be investigated further.

33
 LIMITATION

While the findings of this AI research study add to both theoretical understanding and
practical application, it is critical to recognize and solve specific constraints that can lead
to future research and progress.

Firstly, the theoretical component of this study may benefit from a more in-depth
examination of machine learning concepts and algorithmic rules as they apply to AI
recruiting. A deeper dig into AI systems' fundamental mechanisms and decision-making
processes might give a more thorough knowledge of how these technologies function in
the context of recruiting.

Second, the quantitative analysis undertaken as part of this research may be deemed
restricted in terms of data and breadth. Increasing the dataset's generalizability and
providing a more thorough perspective of the subject matter might be improved by
incorporating replies from a larger range of firms or embracing other regions. This
extension would not only increase the number of responders, but it would also bring
greater variation in organizational practices and cultural aspects that might impact AI
adoption in recruiting.

These factors can lead to more robust and complete findings that can influence both
academia and practitioners in the fields of artificial intelligence and human resources.

34
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 APPENDIX

Email*

Your answer

Name*

Your answer

Company/Organization Name

Your answer

Position*

Your answer

Years of experience *

● Less than 1 year

● 1-5 years
● 5-10 years
● More than 10 years

Does your organization currently use AI in the recruitment and selection process?*

● Yes
● No

Has AI been used in any recruitment process you've been a part of?*

● Yes
● No

Please specify which AI tools or technologies you have used.*

37
Your answer

Do you believe AI has improved the efficiency and speed of the recruitment process?*

● Strongly Disagree
● Agree
● Neutral
● Disagree
● Strongly disagree

Has AI led to more accurate candidate assessments and selection?*

● Yes
● No
● Maybe

Do you use any AI tools to improve candidate experience?*

● Yes
● No

Do you think AI can help reduce bias in recruitment decisions?*

● Strongly disagree
● Strongly agree

Are there any challenges or concerns you associate with the use of AI in recruitment?*

● Yes
● No

Do you think it is important for AI-driven recruitment processes to be transparent in their

decision-making?*

38
 ● Yes
● No

Do you believe AI could completely replace human involvement in the recruitment

process?*

● Strongly Agree
● Agree
● Neutral
● Disagree
● Strongly Disagree

Do you think organizations should provide training to HR professionals on using AI in

recruitment?*

● Yes
● No

How do you think organizations should provide training to HR professionals on using AI

recruitment?

Your answer

39