Last week, I was part of the speaker panel for a CIPD webinar discussing the impact of AI in recruitment. It’s no surprise perhaps that the conclusion of the pros and cons of AI ended up with an ‘it depends’ answer.

That being said, one of the areas I really enjoyed delving into was the odd obsession AI software developers have with trying to pass their product off as human. During the recruitment process, when emotions are heightened and candidates want to feel wanted, finding out that you’ve been interacting with a computer, rather than a person, can easily lead to feeling duped. It also rather flies in the face of most company assertions that people are their most important asset and they believe in honesty and transparency! We all concluded that we really don’t mind if AI is used during recruitment, but make it clear where in the process it is being used – and then double down on the parts that humans do best.

In that same vein, I thought I would write an article on the use of AI in recruitment, focusing on SME organisations, which are Waddington Brown’s core client base.

The Positive and Negative Uses of AI in Recruitment: Considerations for SMEs

Artificial Intelligence (AI) has emerged as a powerful tool that can streamline the recruitment process, making it more efficient and less time-consuming. However, as with any new technology, there are both positive and negative aspects to consider, particularly when it comes to maintaining the human touch in recruitment.

The Positive Uses of AI in Recruitment

AI can significantly enhance the recruitment process by automating repetitive tasks and handling high volumes of applications. For SMEs, this can save valuable time and resources. AI-powered tools can scan CVs, shortlist candidates, and even conduct initial stages of the interview process. This allows hiring managers to focus on more strategic aspects of recruitment, such as evaluating cultural fit and final decision-making.

One of the key benefits of AI in recruitment is the ability to reduce bias in hiring decisions. Machine learning algorithms can be trained to focus solely on the qualifications and experience required for the job, reducing the impact of unconscious bias that may affect human decision-making. This is especially important for small businesses that may not have dedicated HR or in house recruitment specialists.

AI can also improve candidate experience by providing timely feedback and creating personalised communication. According to a 2023 survey by IBM, 71% of job seekers said they prefer to interact with AI during the recruitment process, especially for tasks such as scheduling interviews and answering FAQs. This allows candidates to feel more engaged and informed, creating a positive impression of your company from the very start.

The Negative Uses of AI in Recruitment

While AI can be incredibly beneficial, it also presents certain challenges. One of the biggest concerns for smaller businesses is the risk of losing the personal touch in recruitment. Small business owners often pride themselves on creating close-knit teams and fostering strong relationships with their employees. Over-reliance on AI can make the process feel impersonal and may lead to candidates feeling like they’re just another data point in the system.

Another potential downside is that AI tools are only as good as the data they are trained on. If the training data is flawed or biased, AI may inadvertently perpetuate these biases in the recruitment process. This can result in qualified candidates being overlooked or marginalised based on factors unrelated to their abilities or experience.

Finally, SME business owners and directors may feel pressure to adopt AI simply because it’s becoming more common, even if it’s not the best fit for their company. AI tools can be expensive and require ongoing maintenance, which can be a significant financial burden for businesses.

How Hiring Managers Can Use AI Effectively

For SME businesses considering integrating AI into their recruitment process, here are three key actions to ensure it’s used effectively:

1. Balance Automation with Human Oversight: While AI can help with tasks like screening resumes and scheduling interviews, make sure there is always a human involved in the final decision-making process. This will ensure that candidates are evaluated for cultural fit and soft skills, which AI cannot fully assess.
2. Choose AI Tools Carefully: Invest in AI tools that are designed to minimise bias and ensure diversity in the recruitment process. Look for systems that allow you to customise criteria to align with your business needs and values.
3. Maintain Transparent Communication with Candidates: Be upfront with candidates about the role AI will play in the recruitment process. Transparency can help build trust and ensure that candidates feel they are being evaluated fairly.

Conclusion

AI is undoubtedly transforming the recruitment landscape, offering both opportunities and challenges for businesses. By carefully considering how to integrate AI, business owners can benefit from its efficiencies while still maintaining the human touch that sets their company apart. Striking the right balance will ensure that AI becomes a powerful tool for attracting the right talent and building a thriving workforce.

This article was written entirely by ChatGPT,  using the prompt:

Act as the owner of an HR recruitment company in the UK. Write a website article of approximately 500 words highlighting the positive and negative uses of AI in recruitment. Focus particularly on the impact for small businesses and the pressure placed on business owners to recruit talented people quickly, but without wanting to lose the human touch in deciding on who is the right candidate to join their business. Include statistics about job seeker preference of interacting with AI during the recruitment process and conclude with three key actions hiring managers can consider when looking to use AI in their recruitment process.