The Future of Talent Acquisition: How AI is Redefining HR

The primary worry lots of individuals working in human resources have is that artificial intelligence is bound to replace their roles at a company. Albeit a valid worry, the reality of the situation regarding the future of talent acquisition is that AI is here to leave a positive impact on HR professionals rather than replace them.

A majority of HR departments use AI to facilitate certain procedures that aren’t necessary for humans to complete. These tasks range from managerial tasks to onboarding. As many benefits as AI has provided this field, there are setbacks to using AI, such as cyberattacks or limitations on what a certain artificially intelligent software is capable of with its given tools.

In this article, we will dive into what AI is, how it is used in human resources, its benefits, the considerations of the negatives that AI can bring to the workplace, and the outlook on the future of AI in HR.

What is AI in talent acquisition?

Artificial intelligence is an extremely broad term for an amalgamation of various tools and software that function more intelligently than the average. The basic definition of AI is a large amount of data that is paired with strong processing and complicated algorithms. These factors all lead to software that is capable of learning patterns and providing logical answers.

There are two main subsets for AI that are both used in talent acquisition. There is non-sensitive AI which is less independently intelligent, and general artificial intelligence AI which seems almost conscious thanks to its ability to give complicated and accurate answers and features similar to a conscious being. Conscious AI is still very far into the future.

Currently, AI functions as a helper for humans to complete mundane tasks that don’t necessitate immediate human attention. With this fact, it is safe to say AI won’t replace humans anytime soon. Many companies relating to HR utilize good AI, for example, Lensa shares this trait as well.

It is important to make the distinction between different kinds of AI to fully understand how it has been and can be incorporated into the world of talent acquisition. Conversational and decisional AI are both commonly used in HR for various uses, such as chatbots and semantic analysis.

Deep learning and natural language processing are also elevated forms of AI commonly used in HR. Deep learning is currently linked to the consciousness of artificial intelligence and is a layered neural network similar to human consciousness. Natural language processing is also similar, the software tries to analyze all areas of human speech to understand and simulate it.

The current popularity of AI

Countless studies show that over half of HR departments and companies are using AI in various ways to facilitate their processes. The use of AI in talent acquisition is predicted to take over the majority of these companies, thanks to so many benefits outweighing the risks. To read more about the benefits and risks, find those sections further in the article.

Ways AI shows up in HR

Essentially, AI is used to make the HR department of a company cost-efficient and labor-efficient. As mentioned previously, AI takes over mundane tasks, which we will be explaining below.

Administrative automation

The automation of mundane tasks has been mentioned previously in this article. We will now explain further what that looks like being done by AI in an HR environment. The automation of boring tasks has been around for countless years in various fields, including talent acquisition.

The difference between the past and the futuristic present is the quantity and quality of low-value tasks artificial intelligence takes over, such as organizing employee questions, managing benefits, handling policies and forms, and so on. These administrative tasks can be done automatically and reliably without human intervention, thus why AI is widely used.

Conducting interviews and screening

Digital assistants are becoming increasingly popular during the interviewing process. Artificial intelligence shows up as a digital aid for candidates looking for jobs by making scheduling and canceling interviews a seamless process, as well as sending reminders to candidates to keep them engaged.

Hiring managers are also greatly helped by AI, from sourcing candidates to interview scheduling. The labor market is highly competitive, meaning AI makes all the difference for HR teams to find strong employees.

Machine learning is often used for candidate sourcing. The artificial intelligence automatically scans received resumes looking at previous experience, keywords, and specified skills suitable for the job listing.

This software also recommends the uploaded job to the correct candidates, involving passive candidates alike. With the analytical decision-making capabilities AI software has, the likelihood of the right job being recommended to the candidate with the correct skills and experience is very high.

More powerful AI software can even predict the likelihood of a candidate succeeding at the company, helping influence the HR team’s decision on hiring the candidate. That success is measured as the employee’s predicted tenure, performance outcomes, and how likely they are to accept the job.

Candidate selection

We’ve skimmed the surface on the topic of candidate selection in the latter but the whole process of selecting and sending out offers goes further than that. The biggest difference is how candidates are compared to other top earners in the same field they are applying to within an organization. This comparison can help the recruiter understand the predictions about this candidate.

We’ve also mentioned personalized offers earlier in this article. AI is able to compare data on different offers in the field to determine what offer would be most successful for a candidate.

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Employee onboarding

Employee onboarding is the act of a company integrating a new employee into their company. This integration is done by providing orientation on the workplace, teaching the new hire about the company, as well as the methods for working with the company. This includes values, work culture, the company’s mission, and the structure of its staff.

The experience of the employee being onboarded is extremely important since it can maintain the employee’s return and even end in them recommending the company to others. Artificial intelligence greatly improves their experience through methods you can read about below.

AI has become smart enough to provide automatic organization and personalized recommendations to these employees. These types of software will recommend key contacts, suggest training programs, and inform onboarded employees of policies and potential benefits.

Artificial intelligence is also available nonstop, unlike a human employee, increasing the experiences greatly by being an effortless and inclusive process for employees.

Employee maintenance and general management

Retaining employees is currently every company’s biggest struggle. Turnover rates are quite high compared to past data due to work culture shifting drastically thanks to younger generations making changes. Such shifts include quiet quitting, where employees start to decrease their output from feeling a lack of pay and less loyalty to companies.

Workers are increasingly driven by purpose and self-sustenance, meaning they aren’t afraid to switch to a company that has provided them with a better offer, especially if they don’t see a path to climbing the so-called “corporate ladder.” In other words, employees need career growth, better compensation, and opportunities to learn at a company.

The benefits of AI in talent acquisition

We have talked about all the ways AI manifests in talent acquisition so far, not to mention what it can hold for the future. The benefits of AI go far beyond simply doing mundane tasks in place of recruiters. Keep reading to find out how artificial intelligence is benefiting the talent acquisition scene.

Artificial intelligence acts as an enabler for organizations to maximize their potential when it comes to managing talent. This, in turn, incentivizes employees to remain at companies thanks to the positive environment it passively creates. From developing careers to strategy creation, AI provides a massive benefit for HR teams.

We’ve countlessly mentioned the erasure of repetitive tasks many recruiters find themselves confronted with but to explain further, AI creates space for recruiters to focus on more important tasks. These tasks include mentoring employees, strategizing, engaging with employees to improve interpersonal work relationships, and so on.

Artificial intelligence is also able to create and aid in a strategy to better maintain employees by focusing on career development. We’ve touched upon this topic earlier in the article when mentioning new worker generations popularizing higher turnover rates.

In the past labor market, employees had the opportunity to benefit from staying at a company by reaching higher positions starting at entry level. The current economy is fast-changing, meaning new jobs are always popping up and employees are constantly moving. To negate these issues, AI helps companies solve these issues through qualified suggestions.

One of those is giving personalized recommendations and career pathing to employees, meaning their career development is specially curated based on all their personal and previous data. Employees can set various learning goals to achieve a desired outcome for this path as well. The gesture of this strategy also shows employees the interest their superiors have in them succeeding at the company.

Efficiency is obviously greatly increased thanks to better allocation of resources such as labor. When professionals aren’t tasked with time-consuming chores, they have less time to create solutions for more important matters. The faster output rate for HR employees ends up increasing company efficiency and, thus, profits over time.

Artificial intelligence also provides market insights and other data feedback since it uses the data to conclude its algorithmic operations constantly. This provides companies with insights as to how well their recent approaches have been doing compared to past ones, such as comparing recent salaries to competitive data.

Disadvantages of AI incorporation

As we’ve mentioned, the positives outweigh the negatives when it comes to AI in talent acquisition. Unfortunately, certain disadvantages still exist that need to be addressed.

Artificial intelligence has one main ingredient: data. Just like a plant won’t grow in rancid soil, AI won’t be able to use its full potential if the data it is given is faulty or biased. Many HR departments lack the correct amount and quality of data for AI to function to its full potential and provide all its benefits to the company. Therefore, there can be integration issues.

The context and timing of the data that is being injected are also extremely important, thus why it is categorized as science and takes highly trained professionals to create this software and maintain it.

The topic of lack of cybersecurity also comes up as a risk, especially since HR software handles vast amounts of personal data that, if leaked, can cause massive general outrage and endangers people. Thankfully, this risk is imminent anywhere there is the internet. Therefore, it is avoidable with the correct measure.

The generalization of solutions for potentially niche issues is also a worrying factor for many HR professionals considering switching to AI. The context of an issue and the context of management cannot be separated. AI should become more advanced to provide creative and innovative solutions that can be incorporated specifically into a company and its needs.

Mastering the art of translating your values to artificially intelligent software is also increasingly important when it comes to individualized solutions for a talent acquisition team. Most teams needn't worry since AI is already on the way to becoming extremely powerful and useful, especially in the world of talent acquisition.

The road ahead

We’ve been seeing great steps forward from start-ups and larger companies developing better AI specifically designed for human resources. As the software becomes increasingly efficient, dynamics at companies are changing in a positive direction from the benefits AI provides. One can only assume the use of AI in talent acquisition is set to increase exponentially.