Artificial intelligence (AI) is altering our business landscape and ushering in a fundamental shift in how we work. IBM, a global technology leader, defines artificial intelligence, or AI, as technology that enables computers and machines to simulate human intelligence and problem-solving capabilities.
In this series of articles, we will explore how AI is specifically affecting talent acquisition (TA) from three critical points – the people, processes, and technology.
Experts have varying opinions on how AI is driving change and reshaping the talent environment; however, most agree that people are the principal factor in the equation.
To better understand the transformative role of AI in talent acquisition, let’s start with the stakeholders, including:
- The candidate who is seeking the dream job
- The employer that needs the best available talent
- The talent acquisition professional / recruiter who strives to fill the open position
The Job Candidate
Talent acquisition AI tools have had a major impact on the job search experience for candidates. For example, automation in recruiting has dramatically improved candidate communication and engagement. A recent LinkedIn study predicts that AI will make it 59% easier to reach and engage qualified candidates.
Other AI tools improve candidate communication by providing continuous feedback, streamlining the application process, and focusing on personalized touch points with recruiters and hiring managers.
AI is also positively impacting the regulatory and compliance arena. AI assessment and testing tools can help reduce unconscious bias and focus on a candidate’s skills and qualifications, while adhering to legal standards and transparency in the hiring process.
The Employer
Employers are also experiencing a new reality due to the emergence of AI. They now have access to new data points, communication efficiencies, and predictive analytics to make better informed hiring decisions.
AI tools give organizations a competitive advantage in finding and engaging top talent. According to Indeed the cost per hire can be between $6,000-$20,000 depending on the role. With the help of predictive analytics, employers can gauge if a candidate is likely to remain in a position for 12 months after hiring, thus reducing hiring expenses and turnover. AI has also contributed to setting up a more efficient, fair, and faster hiring process.
The Talent Acquisition Professional
Business transformation in talent acquisition (including AI) requires the human element. History has shown us that technology implementations rarely succeed without a human-centric approach.
At the onset of AI, human resources professionals sounded the alarm that AI would replace recruiters or systematically lower the numbers. That sentiment has diminished. A study conducted by ClearCo indicated that 71% of Americans are against AI tools making final hiring decisions. Many recruiters have now embraced AI and learned to apply its transformational power to improve their craft.
Through AI, talent acquisition professionals can reduce administrative tasks, accelerate candidate screenings, streamline the hiring process, help build diverse talent pools, and strengthen the candidate experience. All of these improvements allow a recruiter to have more personalized interactions with candidates and focus on key strategic priorities such as culture fit.
The transformative role of AI has staked its claim on talent acquisition and the people who navigate through the process. Today’s job seekers have access to more personalized job opportunities and an efficient way to manage the flow. Employers can utilize a range of AI tools, from predictive analytics to pre-hire assessments, to make data-driven decisions that lead to better hiring choices while decreasing their overall cost per hire. And talent acquisition professionals who have embraced AI are quickly learning how to harness its power. With AI they can enhance the candidate’s experience, provide greater value to hiring managers, and streamline the hiring process. The challenge for talent acquisition professionals, then, is how to strike a balance between AI and the human element.
Next in our series we will explore how talent acquisition professionals are meeting the challenge through highly detailed processes and strategically placed AI technology.
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ABOUT THE AUTHOR
Jose F. Laurel
Vice President – Recruitment Process Outsourcing at G&A Partners
Jose F. Laurel is the Vice President of Recruitment Process Outsourcing (RPO) for G&A Partners. Jose’s professional experience spans more than 28 years in PEO management and international business. Since 2007, Jose has served in various capacities as a member of G&A Partners’ leadership team.
Prior to joining G&A, Jose was country manager in Latin America for Westinghouse International. He later became a principal of Mir Fox & Rodriguez, a Houston-based professional services firm. In that role he established and operated a business consulting practice targeting mid-sized and multinational corporations.
His areas of expertise include strategic planning, workforce optimization strategies, and talent acquisition. Jose is based out of the G&A corporate office and resides in Houston.
