The AI Recruiter: How AI is Changing Talent Acquisition

Boston Consulting Group (BCG) surveyed chief human resources officers in 2024, with the findings showing the increased ubiquity of AI recruiter solutions. The survey revealed that 70% of the companies experimenting with AI are doing so within HR. Talent acquisition emerged as the top use case for AI within HR, the survey further showed. The reason for this is that AI is particularly good at handling administrative and marketing tasks that are core to the hiring process. 

The survey highlighted testimonials from companies that have embraced AI in recruitment. 92% of the companies stated that they’re already enjoying the benefits, from increased productivity to finding more talent than was previously possible. By combining the survey’s findings with reports from other companies, a common thread emerges: AI is indeed changing talent acquisition and reshaping recruitment. So, in this article, we delve into exactly how AI recruiters are making this possible. Specifically, we discuss what they are, how they work, their benefits, and their impact on talent acquisition and recruitment.

What is an AI Recruiter?

An AI recruiter is a tool that uses artificial intelligence to automate tasks that are part of the recruitment process. AI recruiters are used in a number of ways, as described below. But before going through how they’re used, let’s first delve into how they work.

How an AI Recruiter Works

An AI recruiter is a unified AI system that combines multiple elements. Combined, these elements enable it to be used in the different ways described below. Given the broader use cases of AI recruiters, these tools are much more advanced than AI interview assistants. In fact, some of the best AI recruiting software, like Promap, ship with built-in AI interview assistants, e.g., Promap’s AI interview copilot, alongside other AI-driven tools. 

To understand how an AI recruiter works, it’s crucial to appreciate the various components that make up this system. As we detail below, these components work together to make using AI in recruitment straightforward, efficient, and intuitive. The components of an AI recruiter include:

• AI models and algorithms
• Computational resources
• AI assistants and AI agents
• Data, data stores, and data pipelines
• Orchestration engine
• User-facing application

AI Models and Algorithms

An AI algorithm is a set of procedures and instructions that an AI system uses to learn from data during training and make decisions. Multiple algorithms help create an AI model that makes decisions or predictions. AI models that support machine learning (ML) improve their capabilities with continued usage as more data becomes available.

Today, there are different types of models, a topic that falls beyond the purview of this article. But the bottom line is that an AI recruiter can be powered by a number of AI models, which enable it to serve different functions. For instance, generative models for natural language processing (NLP), like large language models (LLMs), enable AI tools to engage candidates, generate documentation, and even conduct interviews.

AI Assistant and AI Agent

An AI assistant assists recruiters and interviewers by automating repetitive tasks. These tasks can include scheduling interviews, transcribing interviews, and generating post-interview documentation like follow-up emails or summaries, just to mention a few. 

On the other hand, an AI agent has autonomy; it is designed to complete certain tasks with minimal supervision. An AI agent can screen candidates, conduct interviews, administer assessments, and evaluate candidates’ skills. These tools also provide insights into the candidates, enabling recruiters to make decisions on who should proceed to the next stage. 

AI recruiting tools like Promap have the functionalities of an AI assistant and an AI agent. Others, however, only have the capabilities of an AI agent.

AI Orchestration Engine

An AI orchestration engine helps automate and coordinate the various functions of the AI system. It does the following:

• Monitors the flow of data (including fetching data from stores)
• Manages computational resources
• Tracks task progression and completion
• Integrates with external tools like meeting platforms, databases, other AI tools, and various system components
• Automate tasks such as generating prompts and responses, assessing candidates, summarizing documents, parsing documents to extract data, and much more

User-Facing Application

As a recruiter, you do not need to know all the technical details. Ordinarily, beyond knowing how the AI recruiter handles your data and actualized AI ethics, you just have to know how to use the user-facing application. This piece of software can be web-based or can be installed on your mobile phone or personal computer. The application lets you set your preferences and operate the AI recruiter. 

Computational Resources

Computational resources refer to the hardware and software that run AI workloads and the AI recruiter’s backend processes. These resources run multiple complex calculations that help train models, process data, and ensure the AI recruiter functions smoothly. The resources include graphics processing units (GPUs), powerful central processing units (CPUs), superfast memory, and equally fast storage drives. 

Data, Data Stores and Data Pipelines

Data is a crucial component. It trains and fine-tunes AI models to, among others, identify patterns, predict, and recommend. These data can be sourced from previous interviews, resumes, cover letters, your existing tech stack (e.g., your preferred video conferencing tool), calendar data, and more. This data must be transmitted and stored, which is where the data pipelines and stores come in.

Use Cases for AI Recruiters

AI recruiters are used in the following ways:

1. Generate job descriptions: AI recruiters that use generative models can generate job descriptions from prompts
2. Candidate sourcing: AI recruiting software scans job boards, platforms like LinkedIn and GitHub, and social media to identify top talent
3. Candidate engagement: Some AI tools for recruiters include chatbots that engage candidates, promptly communicating with them and answering their questions. In addition, some tools draft marketing or outreach emails and generate summaries of interviews that they then use to draft personalized feedback and follow-up emails.
4. Candidate screening and candidate matching: AI recruiters scan resumes and cover letters, singling out candidates with certain skills and experience and subsequently matching them with the open roles. Usually, these tools evaluate candidates’ skills and experience against the job description, only choosing the best fit.
5. Scheduling interviews: AI recruiters with AI assistant capabilities use your calendar data, preferences (such as your preferred video conferencing platform), availability, and information about the availability of the candidates to suggest the best times for the interview. They will then prompt you for approval, enabling you to review the suggestions and shift things up before the AI tool sends out the interview invitations. 
6. Candidate assessments: AI recruiters can create and administer skill tests, aptitude tests (which gauge personality and cognitive ability), and situational judgment tests. They also conduct skill-based technical interviews. The AI tools can then analyze the results to identify the candidates’ strengths and weaknesses.
7. Candidate evaluation: AI recruiting software processes candidate data. This data is often obtained from their resumes, assessment results, and interview responses. The tools then provide insights into the candidates’ suitability for the job opening, enabling recruiters to make the final decisions.

Benefits and Limitations of AI Recruiters

This section highlights the benefits and limitations of AI in recruitment.

Benefits of AI Recruiters

Choosing the right AI recruitment tool promises a number of benefits, including:

1. By automating tasks like scheduling interviews, engaging candidates, and drafting emails, AI recruiters free recruiters’ time, enabling them to concentrate on core functions rather than administrative tasks
2. AI recruiters that schedule interviews ensure calendar optimization and improved time management
3. AI recruiters provide actionable insights sourced from candidates’ data, assessments, and summaries of interviews, which human recruiters can use to make more informed decisions
4. These tools reduce the time to hire. For instance, Promap has been shown to cut down by more than 70% the hours spent on end-to-end recruiting
5. AI recruiters cut hiring costs by a significant margin. For its part, Promap reduces the cost of hiring by up to 80%.
6. AI tools for recruiters enable them to handle more job applications without sacrificing the overall experience for candidates and recruiters
7. The use of AI in recruitment reduces human bias, promoting fairness, inclusivity, and diversity
8. AI recruiters that source talent help companies expand their talent pools and find hidden talent

Limitations of AI Recruiters

Companies that use AI in recruitment also face a few challenges. These include:

1. AI recruiters that use models that were trained on biased data will perpetuate these biases during use
2. Data privacy and security concerns because of leaks, data breaches, or a lack of clarity on whether company data will be used to train AI models.
3. Failure to interpret context or pick out non-verbal cues can lead to unintended results
4. Some AI recruiters may not integrate with your existing HR tools like your applicant tracking system (ATS)

What Industries Benefit from AI Recruiters?

AI is industry agnostic. Today, many industries benefit from using AI in recruitment. While the list below isn’t exhaustive, it gives a glimpse into the industries that benefit from AI recruiters.

Technology

Amazon uses AI and ML to support job applicants throughout the recruitment process. These tools provide real-time recommendations for relevant jobs when candidates search for roles. And as they continue with the journey, the AI-powered tool recommends the right role based on their skills, interests, and experience. The company also uses AI-powered online assessments to evaluate candidates.

Similarly, the recruitment team at Google Cloud uses AI to improve candidate matching and onboarding. The result has been a reduction in employee onboarding time. The AI tools also provide summaries of each candidate, enabling the recruiters to make data-backed decisions.

Manufacturing

Unilever has used AI in recruitment since as early as 2017. Then, the company used AI to evaluate candidates. The AI-powered system scans candidates’ word choice, body language, and facial expressions and checks these markers against traits that predict job success. At that time, Intel, another manufacturing company focusing on chip fabrication, had previously used a similar system.

Transport

Delta Air Lines Inc., the largest airline in the world, uses AI to improve the skills of its employees, boosting internal hiring. The company uses the talent intelligence hub in SAP SuccessFactors, which maps employees’ current competencies to learning opportunities, some of which are recommended by AI algorithms. These learning opportunities help employees move from hourly roles to salaried positions. 

Singapore Airlines is reported to have used an AI-powered skills assessment system that evaluated candidates’ traits against certain predictors of success.

Logistics

Logistics company Kuehne+Nagel uses an AI-powered solution to support internal hiring. The company uses a portal that pre-populates employee information from its other HR systems. The employees can also add additional information and view job and learning recommendations. On the back end, the portal provides recruiters with information and insights they can use to fill open jobs.

Restaurants

Restaurant chains like McDonald’s, Wendy’s, and Chipotle Mexican Grill, just to mention a few, have used AI in recruitment. Chipotle uses an AI chatbot, Ava Cado, to engage candidates, schedule interviews, and send offers. Similarly, McDonald’s and Wendy’s use AI chatbots to engage candidates and schedule interviews.

Hospitality

Hyatt Hotels, Hilton Hotels, and IHG Hotels & Resorts are some hospitality companies that have embraced AI recruiters. Hyatt Hotels uses AI to identify qualified candidates and streamline the recruitment process. 

IHG Hotels & Resorts uses AI chatbots to engage and manage candidates, schedule interviews, and manage open jobs. Lastly, Hilton Hotels uses AI to identify talent and engage with applicants.

Retail

Home Depot Mexico uses AI to improve recruitment in Mexico. The platform reduced hiring time and cost. It also helped fill vacancies, lowering by 78% the number of stores with more than five vacancies.

Healthcare

AdventHealth is a healthcare organization with a network of over 50 hospitals across nine states in the United States. The organization uses HiredScore AI for recruiters to deliver actionable insights that hiring managers use to make decisions. 

As a result, the tool has reduced by 40% the company’s hiring manager decision time. Besides substantially improving the hiring time, the tool has enabled them to handle 100% more job requisitions in three months.

Finance

Bank of America uses an AI-powered virtual assistant to train new hires. On the other hand, JP Morgan Chase uses AI to source talent. 

Conclusion

AI is changing talent acquisition, with companies across different industries embracing the technology. AI recruiters reduce the hiring cost, human bias, and hiring time. They also enhance productivity, help companies find hidden talent, and improve the overall hiring experience. Try Promap, the leading AI recruitment software, to enjoy these benefits.

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