The Impact of Artificial intelligence on Recruitment Industry


Evolution in technology is an inevitable truth about the 21st century, perhaps to phrase it with a much more realistic approach, evolution in technology is the truth that helps this civilization grow on an unprecedented scale. The upside to this is that every business and organizational entity is upgrading with technological advancement to keep up with the market needs, providing consumers and users with lifestyle-enhancing and life-saving opportunities.  

The staffing industry has proved to be the backbone of the corporate world today to supply every necessity for businesses in terms of human inputs as a resource. From employees to temps and contract-based workers, when it comes to human resources, the staffing industry provides relevant talents incessantly. 

Like every industry, the Staffing industry has encountered various challenges and limitations, which can often be tackled with the help of modern tools. Check out our blog to know more about the staffing industry's challenges.  

Every business in 2022 has tasted, if not already, embraced the tool for the modern era of computation known as artificial intelligence. About 85% of recruiters in the staffing industry think of artificial intelligence as a valuable technology that will replace some parts (if not the majority) of the hiring process.  

How does AI solve the problems faced by the industry? 

Tools backed by artificial intelligence offer quicker response time, with lesser to no human interventions needed to run, can analyze large data sets to produce required results, and manage automation to avoid manual labor work needed for mundane, repetitive tasks. 

Most importantly, AI can eliminate biases during the screening and interviewing processes. A study by RIT, Bengaluru, stated that artificial intelligence is the solution to biases introduced by recruiters during the screening process of a candidate. This includes the Halo effect, recency bias, similarity attraction bias, confirmation biases, contrast, and discrimination between insiders and outsiders to a company. 

According to a G2 article, 73% of the applicants refer to looking for a job and the screening process as the most stressful events in their routine. These statistics alone explain the importance of an excellent recruiting experience. By eliminating troublesome factors like biases, companies can move up the integrity ladder in the staffing industry.  

How does artificial intelligence impact the recruitment industry

As mentioned above, AI and AI-powered tools have effectively solved numerous challenges the recruiting industry faces. Here are a few ways how they create a substantial impact with their utility in the market: 

Increase in job opportunities 

Artificial Intelligence is a core technology that requires specialized individuals who can manage and professionally operate the system and tools powered by the same. This includes setting up an AI ecosystem within an infrastructure at the same time and taking care of maintaining and repairing both hardware and software components integrated into the system. 

This necessity has given rise to more job opportunities as technicians and specialized/ skilled personnel for a company's technical aspect of AI infrastructure. As mentioned by Business-Standard, the AI market is as large as $434 billion globally, which has only increased job opportunities for individuals worldwide.  

Effective talent search 

Branches of applied AI, machine learning, and deep learning have the potential to design a talent searching process that can easily find relevant candidates for positions and provide users with a detailed predictive analysis of the applicant's ability to solve a problem. 

While deep learning can enable a more accessible and much more systematic approach to database studies, thanks to deep neural networks, finding a relevant candidate for a job role in the market now requires less manual labor, and the task would be accomplished in a matter of minutes. This includes reviewing many candidate applications, screening the candidates, and selecting the aptest applicants for interviews.  

On the other hand, machine learning can process job applicants' data sets and produce a report on the candidate's performance, helping the recruiters decide whether or not the applicant is relevant to the job role.  

Check out some valuable tools for your company that can deliver insights for an efficient recruitment cycle.   

Optimization through automation 

  In the recruiting process, candidate experience plays a significant role in setting the company values in the market. Simply put, an individual with a positive candidate experience is 80% more likely to apply again to the same company, even after not receiving a job offer. This places the company's position higher in the staffing market, increasing the demand for job roles within the firm. A good company position will offer more applicants, providing recruiters with a better talent pool. 

Optimizing the recruitment process with automated tools and AI-backed services can help ensure a seamless and candidate-friendly experience. To provide a good candidate experience, AI-based tools can help companies automate crucial steps such as screening, scheduling interviews, and resolving FAQs without any unwanted delays. Automated chatbots have also increased, enhancing the candidate experience by offering 24x7 support. 

Another perspective on AI in staffing: 

There are many perspectives on AI as an aid to the staffing industry; while most are pro to the idea of integrating AI into the company infrastructure, a few notions point out the harsher side of the transition. 

The biggest and most popular opinion is the elimination of the entry-level workforce; this includes HR executives at the bottom of the corporate pyramid, specifically in charge of monotonous workloads that could easily be automated using AI-powered tools. From a company perspective, this helps in cost-cutting and diverts the extra funds to more demanding job roles. On the other side, this may involve ethical questioning on a more significant level for companies worldwide.  

Another perspective is that AI-powered tools provide undue advantages to the MNCs and other big companies compared to small firms within the same industry. This can lead to a disruptive or a monopolized market governed by mega-corporations.  

Artificial Intelligence may be the future of enterprises and the staffing industry but what it lacks is the human touch and evaluation skills required during an interview process. A study by Tidio suggests that over 68% of the respondents want a human presence, at least at the later stages of the interviewing process.  

The staffing industry has benefited from various AI-powered tools; from finding a candidate and going through vast applications to ensuring a smooth onboarding for your employee, most of the essential steps in recruiting are taken care of by artificial intelligence.  

Companies across the globe are embracing the new generation of technologies to help them profit and build a successful brand image; without a doubt, artificial intelligence is the way that leads there. With Aviskaran technologies, you can transform your company into an AI ecosystem and experience first-hand benefits.  

Contact us and book your consultation now. 

Written By:
Aviskaran Team
Content Writer, Aviskaran Technologies