The Role of AI

in Talent Acquisition
The launch of OpenAI’s This is no distant prospect; As HR teams look to the With 52% of talent acquisition
ChatGPT has raised the a Guardian report in March future, 50% anticipate leaders agreeing the most
profile of Artificial Intelligence 2023 found that one-third of that their organisation will challenging part of recruitment
(AI) tools, prompting many Australian businesses currently struggle to meet demand with is identifying suitable
executives to question how use AI tools in recruitment their current talent model. candidates from a large
this latest leap forward in and a Mercer report in 2020 Meanwhile, 56% of HR leaders applicant pool, the potential
technology can be used across found that 55% of HR leaders say their hiring volume will use case for AI in talent
every aspect of a business. were already using predictive increase this year, but 66% say acquisition is clear to see.
Whilst many HR teams have algorithms in hiring. recruiting teams will stay the
already integrated systems same size or contract.
that allow repetitive admin
tasks to be automated, AI has
opened up new possibilities
to bring further efficiencies
and benefits to busy HR
professionals and their
organisations.

of HR leaders were already using of HR teams anticipate that their of HR leaders say their hiring
predictive algorithms in hiring organisation will struggle to meet volume will increase this year
demand with their current talent
model
 Artificial Intelligence is often misunderstood and confused with simpler automation technologies.
It’s important to understand the different aspects of these technologies and their applications to understand both the
possibilities and our stage on the implementation journey.

Artificial Intelligence Machine Learning

Automation (ML)
(AI)
AI applies analysis and logic techniques, including Follows a set of predefined rules to carry out Machine Learning is a part of AI. It describes
Machine Learning, to interpret events, support and actions. It follows the format of if x action learning from past data to improve answers and
automate events and take decisions.1 happens, do y. predictions.

Example HR use case: Example HR use case: Example HR use case:

Screening applications based on a job description Sending reminder emails and surveys. Analysing past and current employee performance
using all available data to recommend suitable to predict similar applicants’ performance in role.
candidates.

Natural Language Advanced Digital

Assistants or Chatbots Generative AI
Processing (NLP)
NLP can also be used as part of AI. This Traditional chatbots use Machine Learning to Generative AI uses existing information to create
technology can understand and analyse respond to queries, ranging from basic Q&A to entirely new content. This could be in any format,
conversational language for sentiment and complex conversational flows involving data from from copy and imagery to audio, video and
accuracy. various systems. AI chatbots can self-improve from presentations.
past interactions, requiring no human intervention.
Example HR use case: Example HR use case:
Evaluating applications and screening calls. Example HR use case: Creating job descriptions and adverts
Applicant information bot

Source: Gartner
The Advent of AI in Business
Processes
We are still at the beginning As AI develops, we will repeat
of AI development and the cycle of technological
implementation. breakthroughs followed by
Familiar technologies, a proliferation of tools, then
including automation, rationalisation and integration.
Machine Learning and Natural AI experts call our current
Language Processing, are phase ‘Narrow AI’ as it is
already integrated into focused on achieving a
existing systems and part of specific outcome or working
the business tool kit. to a specific brief, and it has
defined parameters on where
it can learn from.
of TA leaders agree that the most
challenging part of recruitment
is identifying suitable candidates
from a large applicant pool
 Many HR teams have implemented technology such as Applicant Tracking Systems (ATS) and Candidate Relationship Management
systems (CRM) to automate manual processes and maintain contact with candidates throughout the application journey.
Now AI provides new opportunities to support teams, improving efficiency and hiring speed.

Anatomy of the Talent Acquisition Technology Market

HCM
Recruitment Marketing/CRM Applicant Tracking System (ATS)

• Outbound Sourcing • Candidate • Screening Software • Video Interviewing

Tools Relationship • Virtual recruiting • Text-Based
• Branding and Management Assistants Interviews
Communication (CRM) Platforms • Predictive Software • Interview Scheduling
Channel Tools • Chatbots • Gamification • Recorded Video
• Gamification • Content Curation (Assessment) Responses
(Attraction) Tools • Data-Matching • Embedded Offer
• Career Site • Text, Email and Software Formulation Tools
Platforms Newsletter Tools • Neuroscience Trait-
• Job Board Matching Software
Aggregators

Captivate Connect Consider Cultivate

End-to-end Candidate Experience
Source: Gartner
The AI tools that are currently available can help HR professionals
in various ways, including

Job advertising
Generative AI tools like ChatGPT can write full job descriptions
from just a few prompts, screen adverts for biased language, and
suggest new ways of advertising to broaden the talent you can
attract.

Screening and shortlisting

AI tools can screen CVs to provide you with a short-list based
on your criteria. They can even schedule, run and screen virtual
interviews, effectively allowing you to interview every candidate.

Dynamic offer
AI can scan available market data and provide dynamic offer
recommendations based on location, salary and role.

Candidate communication
AI chatbots provide a new automated way for employers to
stay in contact with candidates throughout the journey. This is
important, both to maintain a positive impression and engage
prospective employees to prevent dropout during the process.
AI has the potential to bring huge benefits to both recruiters and prospective employees.
In a recent survey, 47% of Americans agreed that AI would do a better job than
humans when it comes to evaluating all job applicants in the same way.

The benefits for business:

AI improves the speed of Improved quality of Bias can be minimised AI reduces manual AI minimises mistakes
hire shortlisted candidates Personal preferences and processes A basic but important point,
Researchers from the London AI screening raises the quality unconscious bias can Time is saved in the early AI removes the possibility of
School of Economics found that of the match between employer easily become a part of the stages of recruitment on tasks human error.
AI hiring improves efficiency and candidate, which leads to recruitment process. AI has the such as sifting, screening and
in hiring by being faster, better retention. potential to remove this from scheduling. Automating these
increasing the fill rate for open the equation. The LSE study tasks allows HR professionals
positions, and recommending Improved candidate also assessed whether AI could to focus on time with people
candidates with a greater engagement reduce bias and improve the rather than processes.
likelihood of being hired after AI chatbots can be used to diversity of selected candidates.
an interview. This provides a answer candidate questions Overall, AI hiring resulted in
better candidate experience and keep candidates up to more diverse outcomes than
and reduces the time a seat date throughout the process, human hiring.
remains empty, improving maintaining engagement and
productivity. reducing the risk of dropout.
 Dr Grace Lordan
Associate Professor in Behavioural Science at LSE
Founding Director of The Inclusion Initiative
Although there are many benefits for employers, businesses
must also consider the candidate’s experience.
In a recent study by Pew Research from the London
Research, the vast majority of School of Economics backs
respondents were unaware up this negative response to
that AI was being used in the using AI in hiring. The main
hiring process, and two-thirds reasons for this negative
said they would not want to view were privacy concerns
apply for a position if they and a less personable, more
knew AI was used to help make robotic experience. Overall,
hiring decisions. organisations that deploy
AI hiring were seen as less
The same study found that attractive than those hiring
people strongly opposed AI through humans.
making the final hiring decision said AI would do a worse job
by a ten-to-one ratio. Moreover, Employers can address these when it comes to seeing potential
they are more sceptical that concerns by being transparent in job applicants who may not
AI would be an improvement about how and why they use AI perfectly fit the job description
over humans when it comes in hiring. They can also use this
to thinking outside the box; opportunity to discuss how it
44% said AI would do a worse can benefit candidates through
job when it comes to seeing improved communication,
potential in job applicants who shortened hiring time, and
may not perfectly fit the reduced bias.
job description.
Potential to overlook Reliability of analysis The limits of data
qualified candidates Multiple studies cast doubt As with any tool, AI can only
Research by Harvard Business on some applications of perform to the level of the
School found that 88% of AI. An NYU study of two AI data it can access.
employers believe qualified platforms found significant For example, features such
applicants were filtered out by variances in outcome based as dynamic salary offers will
the screening software. There on resume format and the be limited by the openness of
are multiple reasons why this presence of LinkedIn URLs. market data which may make
could happen, such as missing There are also concerns about the granularity of specific
keywords on applications, gaps the evidence behind video locations and roles unreliable.
in work history being viewed screening techniques based
negatively by technology on expression and tone of
and bias based on a lack of voice analysis. Independent of employers believe qualified
previous performance data for researchers from the University applicants were filtered out by the
similar candidates. Providing of Cambridge’s Centre for screening software
a bloated job description Gender Studies created a
could also lead to qualified tool which showcases how a
candidates being missed as simple thing like lighting can
the shortlisting criteria become impact the results of these
too extensive. assessments.
Mimicking human bias This example cited in the Technical Pricing
As AI uses predictive analysis Guardian is a reminder of how implementation AI technology is often
to infer future performance, crucial it is to be mindful of As with any new technical enterprise software aimed at
it could perpetuate existing how AI tools are trained: implementation, there are large organisations without
bias. For example, AI, trained In 2017, Amazon quietly challenges in onboarding and transparent pricing. Businesses
on data showing a pattern of scrapped an experimental integrating a new piece of will need to research
promoting men with an Ivy candidate-ranking tool that software alongside existing available technology options
League college degree, could had been trained on CVs systems. Companies must also or use specialist technology
read this as a predictor of from the mostly male tech allocate time and resources to consultants to advise on the
success and prioritise those industry, effectively teaching training the tool using existing various options.
applications above those itself that male candidates data sets.
of women or those with a were preferable. The tool
different educational path but systematically downgraded
relevant experience. women’s CVs, penalising those
An example of how this bias that included phrases such as
can manifest is shown in US “women’s chess club captain”,
research conducted in 2020 and elevating those that used
which found that facial- verbs more commonly found
analysis technology created on male engineers’ CVs, such
by Microsoft and IBM, among as “executed” and “captured”.
others, performed better on
lighter-skinned subjects and
men.
AI has enormous potential to improve efficiency and
effectiveness in Talent Acquisition
In the future, AI will not only screen applications but also be able to identify potential candidates
that have the requisite skills and qualifications but have yet to apply for the role.
The predictive analysis within AI can predict success in a role using candidate data and even social
media profiles and online behaviour.
We also have the opportunity to use AI to create a more personalised experience for candidates and
apply this to employees. However, with these new possibilities come new risks, not least in privacy,
data protection, ethical use and potential for bias.

Best practices
• Make sure you give your AI • Ensure you validate the • Think carefully before • Carefully consider the job
tool the right data, work claims of third-party collecting unnecessary requirements you ask AI to
closely with your vendor tools, asking providers data, such as social media screen for to ensure you
and consider any bias in for technical validation, data, as this opens up don’t exclude qualified
current datasets. especially when it comes privacy concerns. candidates.
• Disclose to candidates to eradicating bias. • Consider the reliability
that you use AI in the • Monitor AI tools for bias. of expression and voice
recruitment process, One way to do this is to analysis in hiring before
explaining the reasons why create a dashboard that incorporating these
you do so and what they monitors diversity in the aspects into your process.
can expect from hiring process in different
the process. ways (gender, ethnicity
etc).
 Only

2 in 5
organisations that purchase automation or AI
tools from vendors say their vendor(s) are very
transparent about the steps taken to ensure the
tools prevent or protect against discrimination or
bias.

Source: Society for Human Resources Management

Hype Cycle for Artificial Intelligence
Expectations

Plateau will be reached: Time

less than 2 years 2 to 5 years 5 to 10 years more than 10 years As of July 2022
Source: Gartner
As the technology advances The challenge for businesses Leaders should consider the
and matures, we will see more is in the data used to train AI limitations of their own and
guidance and best practices and monitoring tools closely publicly available data when
developed to allow businesses for any unintended bias assessing the benefits of an AI-
to make the best use of its generated due to this data set. driven approach.
functionality. Companies also face the There’s no doubt there are
Integration into existing HR challenge of understanding huge efficiencies to be gained,
tools and more affordable the technology and verifying particularly for organisations
and scalable options will soon vendor claims as they search facing huge volumes of
follow the proliferation of for prospective solutions. applications.
stand-alone tools. We will likely While AI can provide Still, many concerns will need
see a second wave of deeper many efficiencies, the to be addressed throughout
AI tools as we expand the ways implementation of AI is not to the implementation process.
we use AI and begin to think be taken lightly.
more widely and deeply about
its application over time.
That said, there are still gains
to be made by using AI today.
AI has already been proven
to speed up the recruitment
process, providing benefits for
employers and candidates.
Can AI completely How can small How does AI help What are the potential Is it ethical to use AI in
replace human businesses leverage AI in in reducing bias in risks associated with recruitment?
recruiters? recruitment? recruitment? using AI in recruitment? Yes, but AI use in recruitment
No, at least not yet! AI has Small businesses can benefit AI can remove the potential As AI technology is in its early needs to be carefully
a long way to go before it from using generative AI tools for bias through its ability stages, there are several risks, considered. Employers must
reaches human-like capacity. such as ChatGPT to create job to apply the same criteria including legal risks around validate the claims made by
Experts define this stage as descriptions and adverts and equally across all applications. ownership and copyright of vendors concerning ethics and
narrow AI, where we must suggest avenues to advertise However, there are risks in how publicly available data, privacy bias and be transparent with
provide a clear brief and to widen the reach of the role. AI is briefed and the data it is and data protection concerns candidates on how and why
point the technology towards Businesses that have trained on, which can lead to from prospective candidates, AI is used in the recruitment
data that can help provide a implemented ATS and AI mimicking existing bias or and ethical concerns around process.
solution. AI can’t undertake CRM systems to help with replicating the current diversity fairness and equality in the
original research and has yet recruitment should speak to as it attempts to predict recruitment process.
to be proven to analyse an their current providers about future performance based on
interview reliably. AI use within their tool, as the current make-up of an
However, certain aspects can there may be features that organisation.
help overstretched teams, aren’t being utilised.
especially in the screening and
sifting phase of recruitment.
Talent Insight Group, Q11
Quorum Park
Benton Lane
Newcastle upon Tyne
NE12 8BU

talentinsightgroup.co.uk Glen Hall Tim Gleave David Steel

E: [email protected] Chairman Joint Managing Director Joint Managing Director
D: +44 191 691 5601 D: +44 191 691 5603 D: +44 191 691 5602
+ 44 (0) 191 691 5600
M: +44 7732 856 175 M: +44 7932 644 573 M: +44 7989 801 313
[email protected] [email protected] [email protected]