What is the biggest challenge in using AI in recruitment?

Survey finds many HR professionals still cautious about using new tech in hiring

What is the biggest challenge in using AI in recruitment?

HR professionals in Singapore have ranked budget constraints as the biggest challenge for AI implementation in recruitment, according to a new survey from Hays.

Budget constraints were cited as a challenge by 35% of HR professionals, as well as 24% of non-HR professionals surveyed.

Ensuring fairness and mitigating bias in AI algorithms, as well as the technology's integration with existing HR systems and processes are ranked as the second-biggest challenges (31%) for HR professionals, according to the report.

Other challenges cited include data privacy and security concerns (30%), as well as IT implementation issues (28%).

Tom Osborne, Managing Director of Hays Southeast Asia, said leaders need to "understand and tackle" the issues identified by HR and non-HR professionals.

"HR professionals will additionally require budgetary support to cater for hands-on training with AI recruitment tools and AI solutions with more human-like interactions or strategic human elements to ensure all stakeholders are comfortable to utilise AI in the recruitment process," he said in a statement.

AI adoption in recruitment

The findings come as employers across Singapore remain cautious in adopting AI in recruitment, with 45.3% of the respondents admitting that they have no plans to use such tools in the coming year.

However, 2.7% of the respondents said they are "extensively" relying on AI in recruitment, while 8.3% are moderately using it specific stages.

Usage of AI among the respondents has mostly been a "mix of automation and optimisation of various tasks," according to Hays.

Around a third of the respondents said they use AI tools for resume screening and shortlisting (37%), as well as for candidate assessment and ranking (33%).

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