Artificial intelligence is far more than just a technological advancement. Used smartly, it has the potential to redefine the future of work and revolutionise industries around the world. Given that efficiency and innovation are critical to success, embracing AI is a necessity for businesses striving to maintain a competitive advantage.

Even though AI presents a huge opportunity, it must be handled strategically and carefully.

While the benefits are significant, many organisations are struggling to turn AI’s potential into something they can use in a meaningful way. Only 4% of organisations currently use AI screening tools to evaluate job applications, according to a recent survey from Hays UK. However, the use of AI tools in the recruitment process looks set to grow, with 16% of employers predicting they will use it in the future.

And within recruitment firms, AI is on the agenda of most, if not all, CEOs and boardrooms. In fact, according to SIA research, 95% of European staffing firms expect to use AI in some form over the next five years, and most predict that the technology will produce a wide variety of benefits. Those that realise its potential can gain a competitive edge.

It is already being harnessed in several ways, including automation in applicant tracking systems (ATS) and production of job descriptions. From quickly analysing thousands of applications to scheduling interviews, AI tools can remove some of the administrative burden and speed up the overall hiring process. This enables employees to spend more time on higher-value tasks. AI also has the potential to uncover previously hidden insights and provide an augmented service to clients and, importantly, save costs. However, it needs to be used to primarily increase efficiencies and to enhance, rather than replace, the human element in the hiring processes.

Achieving Balance

It’s also important to consider that in a skills-short market, more organisations are beginning to hire for potential rather than existing skill set. While AI can interpret required skills and match those to a résumé, it’s much harder for the technology to identify a candidate’s learning potential and whether they would fit the culture of an organisation or could grow into a role.

While AI is already redefining the workplace, a balance needs to be found between increasing efficiencies and maintaining the human touch. Recruitment consultants possess fundamental skills such as emotional intelligence and critical thinking that are unlikely to be replaced by AI analysis anytime soon — not to mention human judgment and relationship-building skills are essential to both the client and candidate side of the recruitment process.

Introducing AI into the recruitment process also raises important ethical and legal considerations. AI tools rely on the training data provided to identify patterns, which can perpetuate pre-existing biases, resulting in discriminatory outcomes. It’s therefore crucial for organisations to recognise these limitations. A survey from Hays Singapore found that only three in 10 HR professionals stated their organisation had issued a policy or provided guidelines on AI tool usage and restrictions for work. At Hays, our responsible AI strategy focuses on driving efficiencies, and we do not use the technology in the decision-making process.

Establishing guidelines with employees ensures AI is used fairly and does not disadvantage anyone. How data is used, and where it is stored, is critical – it must be fully understood before using any AI and sensitive, personal or confidential information must be treated appropriately and anonymised accordingly.

Job Seekers Leveraging AI Tools

AI influence also extends to job seekers. While recruiters use it to streamline the hiring process and generate data-driven insights, job seekers are leveraging the technology to boost their job searches, enhance and speed up their applications and prepare for interviews. However, AI-generated résumés can pose challenges for recruiters and hiring managers. While these tools can help increase a candidate’s chances of landing their desired job, it is essential they maintain a level of authenticity, ensuring that their applications reflect their true skills and experiences. That, after all, is how they can truly stand out.

While recruitment is — and will remain — a human-driven process, AI is here to stay and as its importance continues to grow, the recruitment industry needs to embrace it or risk being left behind. By finding the right balance between automation and the human touch, we can harness the full potential of AI, driving greater productivity and better results for clients and candidates.