AI - Artificial Intelligence

AI in Talent Acquisition: A Cost-Effective Tool or a Risky Bet?

The evolution of technology during the last century has evolved from arithmetic calculators, relational databases, descriptive analytics, predictive analytics, cognitive automation, exponential intelligence and now, to artificial Intelligence (AI) algorithms decision-support systems (ADSS). Generative AI defines the beginning of the next chapter in the ongoing history of information processing with the potential of reducing the cost of decision making.  AI-ADSS provides a huge opportunity of reducing the cost of decision-making which effectively changes how business organizes and operates. 

“Can you shrink your way to success?”

Within a two-year time frame most firms have quickly embraced AI as the miracle “quick weight-loss pill” that reduces costs by eliminating jobs. After all, maximizing profits through outsourcing and automation results in “leaner” more efficient operations. The hype is warranted.  AI can eliminate the need for humans to perform mundane activities, making it possible to use people for higher-value work. But can you shrink your way to success? 

“Good does not come from making things faster.”

Bill Briggs, CTO, Deloitte


Tech experts are skeptical of AI mania. AI can’t work without a solid technological foundation. “Garbage in garbage out”, and in the case of the super-fast AI adoption: “garbage-in, garbage out on steroids”. 


Technology is a “tool” and leaders need to identify IF and HOW technology can create firm value. No doubt, AI will result in process efficiencies, but this does not mean that everything else does not matter.


“Technology is a tool, and leaders need to identify 

IF and HOW technology can create firm value.”


ADSS has revolutionized recruiting. Surveys estimate that 80% of all US firms - and most - if not all, of Fortune 500 firms, use AI in the recruitment and hiring process. AI algorithm-based recommendations for resume screening, sourcing, pre-selection, and selection phases of the recruitment process, is now the norm. AI is not only used for recruiting and interviewing, but AI programs are also used for performance reviews and promotions. HR managers have quickly jumped into the AI mania, without really analyzing the unintended consequences of these technologies. Not surprisingly, the fast adoption of AI for recruiting will continue to raise important technical, managerial, cyber-security, legal and ethical dilemmas.

AI in Recruiting: Research Findings

Research on recruiting has grown exponentially in recent years and critically explores the problems associated with AI recruiting practices from a legal, technical, and ethical dimensions. Research suggests that indeed AI recruiting can not only generate “inconsistent and ineffective” results, but it has the potential of unintentional discriminatory hiring decisions. Also, research indicates that human hiring recruitment decisions by experienced recruiters result in better outcomes than the “inconsistent recommendations” generated by AI algorithms.

Due to the huge impact of recruiting decisions on people’s lives, it is crucial that companies understand both the opportunities and the potential risks that AI recruiting technologies may create and how algorithmic decisions could end up being in complete disagreement with what they want to achieve. 



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