Use of AI in the application process: opportunities and risks

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Actief editorial office

Artificial intelligence in recruiting: More and more companies are looking into the use of AI, short for artificial intelligence, in human resources. Automatically analyzing CVs, evaluating body language and facial expressions during job interviews - this and much more is being used in application processes. The automation of application processes has the potential to ensure non-discriminatory conditions, save time and conserve resources. However, leaving the selection of applicants largely to artificial intelligence brings with it not only opportunities but also risks.

Use of AI in recruiting

Nowadays, companies are increasingly confronted with advancing digitalization. In addition, demographic change and the shortage of skilled workers are making it increasingly difficult to recruit suitable personnel. For this reason, some recruiters are deciding to use additional tools and aids in their search for new talent.

Artificial intelligence can provide support and make recruiting much easier. AI describes the ability of machines or programs to learn through the continuous recording and processing of data. With the help of AI, for example, application processes can be optimized with suitable analyses. Despite this, only 6% of companies in a survey conducted by PwC use AI in their processes.1

So where can AI be used in concrete terms?

  • Analysis of applicants: Application documents are automatically evaluated by AI and offer HR staff a pre-selection of incoming applications.
  • Use of AI in job interviews: The use is full or partial. In fully automated video interviews, candidates' answers are analyzed based on their language, facial expressions and choice of words. In the semi-automated process, the AI supports the HR staff in evaluating the face-to-face interviews.
  • Assessment center: Tasks performed by applicants are recorded digitally and analyzed by AI.
  • Chatbots: A chat window is already being used on career sites to answer general questions from applicants.

These methods are used more frequently in Asia and America, but are still rather controversial in Germany. Around 77% of respondents to a Germany-wide survey by YouGov reject the use of artificial intelligence to conduct job interviews. Around 3 out of 4 respondents are against AI taking over the selection of applicants.2

Advantages of AI in the application process

However, there are also many advantages to using AI in connection with application processes. 68% of participants in a Bitkom survey saw artificial intelligence as an opportunity in 2020 - a significant increase of 20% compared to 2017.3 Firstly, recruiting processes can be optimized across the board. The programs are learning more and more about candidates and can compile and analyze relevant information in a matter of seconds.

The AI acts objectively and neutrally. In contrast to human recruiters, applicants can be selected in this way without unconscious, biased attitudes.

On the other hand, companies can use AI to save time on laborious application processes. These are accelerated and the efficiency of recruitment is increased. Artificial intelligence can also work around the clock, search the web for suitable target groups and filter according to the required hard and soft skills. The recruiter can then deal with the pre-selected selection of applicants in detail.  

Dangers and risks

However, digitalization in recruiting also has its downsides. In everyday working life, almost 44% of respondents to a Bitkom study see the use of AI as a danger.4 There is a real risk of inadvertently rejecting suitable applicants due to misinterpreted filtering by algorithms. Candidates with great potential who could impress the company on a personal level run the risk of being rejected by the AI due to a lack of experience in this area of work, for example. Automated processes lack human interaction. Errors in programming are also a disadvantage. In the Amazon Group's application process, for example, women were eliminated from the applicant pool because more men were hired in advance and the AI misinterpreted this data. Instead of leading to more diversity, the programs reinforced patterns of discrimination.

Conclusion

Digitalization has already initiated the first steps towards working with artificial intelligence. Employees and employers must keep pace with change in order to remain competitive on the labor market. Finding suitable skilled workers is becoming increasingly difficult and time-consuming - as are the associated application processes. Artificial intelligence is playing an increasingly important role here. The opportunities and risks clearly show that AI in HR can provide enormous support for effective working methods in the future. However, other factors such as possible technical errors are decisive for the fact that fully automated work with AI is currently still questionable. Test phases are needed first in order to offer added value to both companies and applicants. To achieve this, the AI used must be constantly monitored and optimized. More transparency is needed to gain the acceptance and understanding of society.