03. How Artificial Intelligence have affected in recruitments

Artificial Intelligence and Finance Industry

AI stands for Artificial Intelligence. Simply this involves software being able to execute tasks that are usually carried out by humans. Artificial intelligence technology has started to get mature enough to be commercialized in finance. Automation, machine learning and natural language processing will change financial services as we know it. It will also change the job market in finance.

In most cases, recruiters are required to sift through the profiles of hundreds of applicants, after which they need to conduct an in-depth interview with a handful of candidates.

But, what if you could use AI algorithms to narrow down your candidate pool to just the right people?

This is where recruitment AI comes in. Given how competitive this industry has become, implementing such technologies presents a real opportunity for recruiters to cut down on the number of hours they spend on the job. 

The COVID-19 pandemic had a significant impact on recruitment in organizations globally, sparing no industry. HR, recruitment, and talent management leaders and practitioners had to reevaluate their processes overnight and turn to technology as a solution.

On the positive side, companies were forced to become more agile in their hiring strategies and processes. Initially they turned to social media to find suitable candidates. However, social media proved ineffective as it was difficult for recruiters to identify the right talent using it. As a result, they began using Artificial Intelligence (AI) platforms which have now replaced social media entirely.

How Artificial Intelligence works in recruitment process?

The touch of human sensitivity is always available as you use the software for the recruitment demands. The set rules shall automatically work at the backend and offer insights to help you identify talented candidates while at the same time, it shall not filter out any candidates. 

 However the the problem is that the alternative for the recruiters is to read and evaluate every single CV separately. Application of AI can help with the sourcing, pre-selection and onboarding parts of hiring process. Other tools can answer candidate questions and setup interviews. 

An AI-driven recruitment software has the ability to examine the talent pool in greater detail and better understand the nuances of top job candidates. It can also assess candidates’ skillsets from different perspectives. In fact, it can model and predict the career paths taken by specific candidates to determine their fit with your organization's needs, or as per its hiring criteria.

The neural network embedded into the platform also learns from historical data to generate more accurate results for short listed candidates. The system is capable of understanding what a candidate is all about, be it their professional competencies, personal traits, career path, or how they stand against the top performing employees of the organization. 

The interview process shall not only be saving time, but also be human bias-free. The data drive screening accuracy is much higher and leaves little room for biased decisions.

Impacts of AI recruitments

•  It saves time time - 

Modern day recruiters are very busy with their time schedules. In that regard the more tedious, time consuming tasks that can be automated, the better. The use of AI driven chatbots isn’t anything new in the recruitment space. In fact, many companies have been using them for a couple of years now. According to a survey by job site Indeed, 24% of recruiters used an automated system for candidate communication in 2017, compared to only 8% in 2016.

• Removes bias recruitments - 

The most common type of bias in recruitment is called “homophily”, or the tendency to prefer people who are similar to yourself. It’s a natural inclination that can lead recruiters to hire people who look like them, or speak the same language as them, or share the same background as them.

To counter this, many companies are using AI tools like video interviewing and personality testing to help reduce the reliance on a recruiter’s personal preferences and make sure candidates are being judged purely on their skills and qualifications. As such, AI can be used to help recruiters become unbiased in recruiting process.

• Finds right candidates -

Good software should analyze all the available information, including performance at previous jobs, non-public data like personality and skills tests, social media posts, and more. This will help to make accurate predictions about who would be the best fit for the job. The technology can also help companies better understand their employees’ interests and how they might grow in the future.

• Improves candidate's experience - 

As we mentioned about AI chatbot previously, It never takes a day off, which means it's always ready to answer candidate questions, even at midnight or on holidays. It can guide candidate through the recruitment process more efficiently, instant answers right when they need them. This is just one example how adding AI instruments to recruitment process can improve the candidate experience.

Reference

Ashly Stahl (2021) How AI will impact the future of work and life.forbes.com [Online] Available from : https://www.forbes.com/sites/ashleystahl/2021/03/10/how-ai-will-impact-the-future-of-work-and-life/?sh=6ae4e3f79a30 [Accessed: 15 December 2021]

Lilia Stoyanov [No date] AI in recruitment, The impact of artificial intelligence on modern recruiting [Online] Available from https://www.e-zigurat.com/innovation-school/blog/ai-recruitment/ [Accessed: 18 December 2021]