AI in recruitment; Benefits, limitations and considerations

Staying abreast of trends in recruitment can be a daunting task, especially with regards to the developing landscape of artificial intelligence (AI).  The UK is currently rated 3^rd globally for AI usage.  Since 2014 the UK government has invested £2.5billion in AI with an ambitious plan to make the UK the best place to live and work with AI (Trade Gov).  Whether your organisation is currently using AI or not, this substantial investment highlights its growing significance. 

The TPP Salary, Rewards and Benefits survey found that 83% do not use AI in their recruitment process, with over 50% unsure if they will use it in the future and 39% stating they will not use it in the future. This is a significant number of organisations when it is so widely used and invested in. 

As a recruitment consultancy to the non-profit sector, we have many clients asking how they can use AI and ensure they are using it effectively. So this month we explore the benefits of using it, alongside it’s limitations and what you should consider before implementing AI within your organisation. 
  

Benefits of using AI

• Hiring can be expensive and time-consuming, by automating some of the more repetitive and data heavy tasks you can reduce your time-to-hire without compromising the quality of candidates.  
• This can also help reduce the need for manual tasks and minimises hiring costs associated with recruiting. 
• Outsourcing some of these tasks to AI frees up the hiring team to focus on elements of recruiting that require more of a human touch, enhancing overall performance and providing a better candidate experience.

 Limitations of AI

• There are concerns around bias.  AI is only as good as the data inputted.  Given that AI has been created and developed in the western world it is not reflective of global populations.   
• There are ethical concerns about privacy so avoid inputting any sensitive or personal data.
• AI is a learning machine, so it requires a lot of data input.  The data it churns out might not always be accurate so verifying data sources is crucial.   
• AI can’t replicate human-like creativity, empathy and common-sense reasoning.   These are keys skills that are needed when you are working in a human capital industry like recruitment.

What should you consider when implementing AI in your organisation

• Understand where existing AI skills & knowledge gaps are in your current organisation. 
• Establish where AI is currently being used in your recruitment processes. Do you have a robust procurement system and are you asking the right questions around bias and privacy when adopting or purchasing AI?
• Upskilling on AI is essential rather than simply replacing roles.
• Drive a culture of continuous learning & curiosity around AI, it is constantly evolving so learning and understanding must evolve with it. 
• Consider nominating an AI Champion or Focus Group to keep it business relevant.  AI shouldn’t just sit with the IT department because it spans across every element of your organisation.
• AI has a place but use with caution.  It shouldn’t replace human interaction but instead compliment it.
• There is a lack of UK regulation on AI so the need to create your own organisational guidelines for use is essential. 
• A report by PWC estimated that 1 in 5 jobs will be displaced by 2037 as a result of AI. In the UK it is considered that any jobs lost will likely be replaced by new roles as a result of increased productivity and economic growth, it is important to note that as with any technological advancements there will be winners and losers depending on the industries you work within. 

Whilst organisations are learning and experimenting with AI, so are jobseekers.  Finding a way forward that allows for this on both sides, without compromising getting the best outcomes in an ethical and transparent way, is what we should all be working towards.

TPP is committed to staying in the loop, apprised, up-to-date of how AI is both developing and impacting recruitment and the not-for-profit sector.  As such, we have an AI Focus Group that monitors developments, shares knowledge, and produces guidelines.  This will ensure we embrace the opportunities that AI has to offer but not compromise what we are passionate about. We thrive in developing human relationships which we know AI will never do as well as we do!  

If you are considering integrating AI within your recruitment, its essential to engage in a thoughtful conversation about current practices and considerations before adopting. If you would like any guidance or support with your recruitment please contact  Samantha.johnston@tpp.co.uk.