AI and the People Industry - part 1: Recruitment
In recent years, the recruitment and hiring processes have been revolutionised by the introduction of artificial intelligence (AI) tools. Many companies now rely on AI to screen resumes, conduct initial interviews, and even make hiring decisions. The benefits of using AI in recruitment are numerous, including the ability to process large volumes of data quickly and accurately. Moreover, AI tools can eliminate unconscious biases, which can lead to discriminatory hiring practices by focusing on objective criteria such as skills and experience.
However, despite the benefits, there are concerns about the potential for AI to perpetuate existing biases in recruitment and hiring processes. An AI tool is only as unbiased as the data it is trained on. Thus, if the data used to train the tool contains biases, those biases are reflected in the AI's decision-making. Algorithmic bias is the term used to describe this phenomenon, and it can lead to discriminatory hiring practices that are challenging to detect and correct.
Another issue is that AI can make decisions that are not easy to explain. Unlike human recruiters, AI tools cannot provide clear reasons for selecting or rejecting a candidate. This lack of transparency can lead to suspicion and mistrust of the recruitment process, particularly if it is perceived as unfair or biased.
The role of human recruiters in the recruitment process is also a concern. Although AI can help streamline the recruitment process and reduce bias, it cannot replace the human touch entirely. Many candidates prefer to interact with human recruiters, and recruiters are better equipped to handle complex situations and provide personalized support to candidates. This is why at VDP we prefer a combination of both people interaction and AI functionality. We wouldn't want to rely solely on AI to make the final hiring decision.
The use of AI in recruitment and hiring processes is a global trend. According to a report by Grand View Research, the global AI recruitment market size was valued at $624.1 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.6% from 2021 to 2028.
In the United States, a survey by the Society for Human Resource Management (SHRM) found that 18% of organizations used AI-powered tools for recruiting in 2020, up from just 6% in 2018. The most common use of AI in recruitment was for screening resumes, followed by scheduling interviews and conducting initial interviews.
In Europe, a study by Eurofound found that only 7% of companies used AI-powered tools for recruitment. However, the study also found that the use of AI was expected to increase in the future, particularly for screening resumes and conducting initial interviews.
At VDP, we are constantly learning new technology to ensure we can provide the best service for our clients, including AI. Whether you are looking for a small scale solution or large teams we have the people and the technology ready for you.
AI tools can revolutionise the recruitment and hiring processes by streamlining the process and reducing bias. They are time saving, and therefore cost saving tools. However, concerns about algorithmic bias and the lack of transparency in decision-making, as well as the role of human recruiters, must be addressed. As the use of AI in recruitment continues to grow, it is essential to ensure that it is used ethically and transparently to promote fairness and diversity.
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