The potential of using artificial intelligence (AI) tools to ease your workload is exciting. However, when it comes to AI in hiring, there’s a disconnect in how employers and job seekers view the technology.
Indeed’s recent global AI survey found that 92% of US human resources (HR) and talent acquisition (TA) leaders are already using AI systems and tools in some way. Yet the majority of Americans (61%) surveyed by the Pew Research Center in 2023 are completely unaware employers use AI for hiring.
While Indeed found that most US employers are optimistic about AI’s impact on the workplace over the next one to five years (60%), job seekers are less so (54%). In fact, job seekers are actually more fearful of the technology’s potential impacts (25%) than employers are (16%). When asked what most concerns them, 47% of job seekers said AI replacing human judgement and intuition in hiring decisions — and there have already been reports about problematic AI systems affecting applicants.
So what can you do as an employer to reassure wary candidates that you haven’t outsourced your hiring to algorithms?
We turned to three experts: Indeed VP of Data Science Donal McMahon; Indeed Head of AI Innovation Hannah Calhoon; and Alan Walker, co-founder of Udder, a consulting business that helps talent leaders leverage AI and other technology, who recently shared his insights in a roundtable on AI in hiring for Indeed Leadership Connect members.
Break Down AI Barriers
Generative AI (GenAI) is becoming more accessible, with 57% of adults having at least heard of ChatGPT. However, job seekers who are older, are low income or haven’t received higher education are less likely to take advantage of such tools. This is significant to the hiring process because candidates who use AI to generate application materials can increase their chances of passing automated screening processes, giving them an advantage.
To help level the playing field for applicants who may not be comfortable or even familiar with AI, start by clearly communicating how exactly they will encounter it in your hiring process.
‘Transparency is always a great way to build trust’, says Calhoon. ‘Helping candidates understand where in the process their application will interact with AI tools is really useful’.
McMahon says transparency also gives you the opportunity to ask for feedback to improve, as there are bound to be missteps in incorporating any new systems like AI in hiring. ‘It gives us a chance to correct it the next time, and that creates a very powerful cycle so that the next [experience] and the next become better’, he says.
And, as these tools are created by humans, their screening is prone to the same systemic prejudices that influence human decision-making. In Indeed’s AI survey, 60% of job seekers expressed concern about bias in the data that trains employers’ AI hiring systems.
Caption: ‘You cannot suppose that these algorithms are an authority on fairness because they absolutely are not and it is dangerous to assume that they are’, mathematician Hannah Fry tells Indeed CEO Chris Hyams in an episode of Here to Help.
McMahon advises capturing and analysing data in every stage of the hiring process to identify and avoid unintended bias. He refers to Indeed’s AI Principles, released by the Responsible AI team, to ensure fair and equitable processes when incorporating new technology.
‘I encourage other companies to write down what matters to them and what’s going to guide their decisions — not only at a macro level, but in every tool they use and in every interview that they conduct’, McMahon says.
Walker cautions employers to build up AI processes slowly to help avoid magnifying incidentally biased behaviour. ‘It’s critical to be hyper-careful when testing’, he says. ‘You can never predict what will happen with scaling to more candidates, but if you test enough candidates enough times and then scale slightly, you’re in a position to stop it quicker without it doing as much damage’.
On the upside, it can be straightforward to correct problems within automation. ‘Human mistakes may be for lots of different reasons, but something you’ve built is probably making the mistake for the same reason each time. This means it may be easier to fix’, says Walker.
Avoid the Resume Black Hole
Many job seekers perceive AI tools as hyper-focused on keywords, ignoring a candidate’s full story. When applying for a job, they don’t know what algorithm or screening method an employer is using — or if it will automatically send their resume to the virtual abyss.
These fears aren’t unfounded: Almost 99% of Fortune 500 companies filter candidates through applicant tracking systems (ATS), and these systems can be flawed. Their technology compares resumes against job descriptions and ranks candidates based on a staggering 70–80% keyword match, which can unnecessarily eliminate skilled candidates who may not use the ‘right’ terminology on their resume.
In fact, 88% of executives know their screening tools reject qualified candidates, according to a 2021 Harvard Business School survey. What’s more, nearly half are aware that their ATS will automatically reject candidates with a resume gap of six months or longer, even though it may stem from military deployment, caregiving duties or medical conditions.
In a tight labour market, you can’t afford to miss out on qualified candidates based on technicalities. When excessive keywords in job descriptions can disproportionately reduce an ATS-filtered candidate pool, consider only including the bare minimum necessary skills.
Calhoon emphasises the importance of building quality assurance into your AI-enhanced processes to avoid accidentally screening out viable talent. This can be as simple as reviewing an AI-generated email before you hit send or taking a more in-depth look at a candidate’s profile after reading a promising summary.
‘Everyone wants to know their job application is being fully reviewed and that they're being seen in the best possible light’, says Calhoon. ‘Even if you are dealing with an enormous load of candidates, and it makes sense to leverage automation and AI to streamline workflows, make sure there are moments in your hiring when folks get to engage with humans, ask questions and present themselves’.
Don’t Sacrifice the Humanity of Hiring
A looming concern among job seekers is that using AI in hiring will replace a personal touch. Calhoon says it’s important to remember that hiring is fundamentally human and should remain that way.
‘These are critical decisions that impact people's lives’, Calhoon says. ‘We are trying to superpower TAs and those in human resources, but we're not trying to replace their really smart, thoughtful judgement with an algorithm’.
When you post a job on Indeed, our AI recommends candidates who match your requirements. This lets you choose the candidates who are the best fit and invite them to apply with a personalised message. In this process of using AI to streamline human decision-making — not replace it — candidates are 17 times more likely to apply for the job.
For many talent professionals, the challenge lies in striking the right balance between machine and human. Walker often finds the solution in experimentation.
He suggests testing various AI-powered approaches across your markets and surveying applicants about their experience to see what works. For example, try a high-touch human, low-touch tech approach in which communication like initial outreaches and interview follow-ups are personalised messages from a recruiter. Then, test the reverse where that communication is automated, and see what works for your candidate base.
‘What we’ve discovered is that certain parts of the world are quite happy engaging with tech for most of the process’, Walker says. ‘Other parts of the world really push back once they realise a bot is involved. It is very dependent on the market’. He suggests embracing a more tech-heavy hiring approach, while offering human support to applicants if they run into problems or have concerns at any step in the process.
Inevitably, AI is transforming recruitment and business as we know it. While you ramp up your use of new technology, make sure you don’t leave quality candidates behind.
