According to an ET report, these tools assist in candidate sourcing, resume screening, skills assessment, predictive analytics, and bias reduction.In some cases, human involvement only begins at the interview stage, while in others, GenAI bots even aid managers in conducting interviews.
Despite concerns surrounding data privacy, potential discrimination, and the inability to recognize hidden potential in candidates, HR executives maintain that AI is making the hiring process more efficient and faster.
Advantages of Gen AI tools
Genpact, a professional services firm, recently introduced IMatch, an in-house resume parsing and job-matching engine powered by GenAI.
“Covering 40% of its new hires, AI tools have made the hiring process touchless till the interview stage,” said Ritu Bhatia, Genpact’s global hiring leader. Bhatia said that the use of AI has led to a 15% increase in recruiter productivity and a reduction in the time to hire from 62 days to 43.
By analyzing historical data, market trends, and internal talent metrics, AI tools enable companies to gain valuable insights into emerging skill demands and talent availability. This information helps them develop effective recruitment strategies to address both current and future talent needs.
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Simplilearn, an edtech company, has been utilizing ChatGPT and other AI tools for more than a year to streamline job descriptions, develop proficiency assessments, and administer psychometric tests. According to Archana Krishna, the company’s chief HR officer, “This enables us to reduce time on mundane tasks and improve productivity and efficiency.”
Rajesh Bharatiya, the CEO of Peoplefy, a recruitment services provider, stated that GenAI-based tools help personalize the process, such as sending recruitment mass mailers tailored to each candidate’s unique experiences and background. He noted, “Such customisation may require 10 times more time to customise manually.”
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Welspun Enterprises, an infrastructure development company, employs a GenAI bot to assist executives in conducting interviews. Rajesh Jain, the chief HR officer, reported, “Our hiring efficiencies have improved drastically. Before using the GenAI bot for interviewing, our selection ratio was 15%. Now this rate has increased to 55%, a 40% jump in my selection rate overnight,” emphasizing the significance of this improvement.
Despite the benefits, experts caution that there are certain drawbacks to using AI in hiring practices at its current stage of development. These concerns include ethical considerations surrounding data privacy, algorithmic transparency, and the potential for discrimination. Additionally, AI may lack the ability to evaluate soft skills, amplify biases, and identify potential in candidates.