By Chris Berta, Partner of the Laurel Group
Key Takeaways:
- AI enhances efficiency: AI tools help recruiters streamline sourcing, screening, and evaluating candidates by automating application review and predicting future performance.
- Challenges with AI: The use of AI raises concerns about bias, fairness, and authenticity, as candidates can misuse AI to manipulate resumes, bypass ATS filters, or even create deepfake content during interviews.
- Increased workload: With AI enabling more rapid applications, recruiters are handling higher application volumes, requiring additional oversight to verify qualifications and ensure unbiased hiring.
The recruitment landscape is being reshaped by the rapid adoption of AI and GenAI technologies, which are revolutionizing both job searching and hiring processes. For job seekers, these tools offer powerful ways to streamline applications, optimize resumes, and enhance interview preparations. For example, candidates using AI tools to analyze job descriptions and tailor their resumes with relevant keywords, are hoping to significantly increase their chances of getting noticed. AI-powered bots enable candidates to apply to multiple positions rapidly, while AI-driven platforms provide simulated interview experiences to help candidates refine their skills.
Recruiters also benefit from AI by improving efficiency in sourcing, screening, and evaluating candidates. AI can automate initial application screenings, sort through large volumes of resumes, and even help predict a candidate’s future performance.
However, these technologies also introduce significant challenges. The reliance on AI in recruitment raises concerns about bias, fairness, and the depersonalization of candidate interactions. AI systems can inadvertently perpetuate existing biases present in their training data, potentially leading to unfair hiring practices. Furthermore, candidates might misuse AI tools to fabricate experiences or skills. Advanced AI can tailor resumes to bypass applicant tracking systems (ATS) filters, making underqualified candidates appear more suitable than they are. There have even been instances of candidates using deepfake technology to create misleading video or audio content during remote interviews, presenting a false image or voice.
Recruiters face the growing complexity of verifying the authenticity of AI-optimized applications. The increase in volume and the use of standardized responses complicate genuine skill assessments, while the need for additional oversight to ensure unbiased hiring adds a significant workload. These tools have led to a surge in application volumes, with Greenhouse reporting that recruiters had to sift through nearly 400 applications per role on average in January 2024, a 71% increase from the previous year. As Jennifer Hoitsma, a Texas-based VP of marketing for an education technology company, noted, even the tools designed to detect AI-enhanced applications can be inaccurate, making the process of sifting through hundreds of resumes overwhelming.
The impact of AI and GenAI on the recruitment landscape is profound, offering both remarkable benefits and substantial challenges. To navigate this evolving landscape effectively, companies must find a balance between leveraging AI’s capabilities and maintaining the human elements essential for assessing cultural fit and interpersonal skills. By continuously adapting and refining their approaches, companies can harness the power of AI to build stronger, more connected teams while ensuring fairness and transparency in hiring practices.
Chris Berta is a Partner of the Laurel Group with responsibilities including business development and senior management searches. He has over 25 years of recruiting, sales and marketing experience with Fortune 50 companies as well as early-stage start-ups.
