But ethics of artificial intelligence must be considered in picking providers, gaining candidates' confidence
As companies continue to struggle to find the talent they need, employers are increasing their overall investment in talent acquisition technology and artificial intelligence (AI).
Overall, 63 per cent are planning to invest in AI hiring solutions this year — compared to 42 per cent in 2020, according to a report sponsored by PandoLogic, an AI recruitment platform.
How exactly? Employers are planning to use AI for recruitment marketing (72 per cent), sourcing/AI matching (70 per cent) and assessments (64 per cent).
AI technology is becoming an indispensable tool for recruiters, one expert previously told Canadian HR Reporter.
However, overall usage rates are still low, found the PandoLogic report by Aptitude Research, as only seven per cent of employers have moved to a fully AI-driven sourcing model while 37 per cent are starting to evaluate AI-driven solutions and the rest are either not using any (23 per cent) or using some (23 per cent) such solutions.
Globally, seven in 10 HR executives say the HR function is ripe for reinvention, a previous report found.
Benefits of AI
This technology will be beneficial for the following, according to the report The Power of AI in Talent Acquisition, based on a survey of 382 North American talent acquisition director-level-and-above workers across all industries and a series of interviews with companies:
- efficiency of talent acquisition (55 per cent)
- quality of hire (48 per cent)
- candidate experience (32 per cent)
- DEI efforts (31 per cent)
- conversion rate (29 per cent)
- recruiter productivity (24 per cent)
- recruiter experience (23 per cent)
“AI improves more than tactical recruitment. It brings benefits that include the human and strategic side of talent acquisition,” says author Madeline Laurano, founder of Aptitude Research.
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Tech integration is very much front-of-mind for many Canadian organizations right now — especially after a pandemic that has forced many companies to swiftly innovate.
Ethical AI
However, employers must use AI ethically, according to Laurano.
“Ethical AI is the most critical consideration of AI matching and the biggest differentiator between providers. Unfortunately, not every provider is committed to ethical AI or providing transparency to companies on the data they are using, the algorithms they develop, or the methodologies used.”
Top considerations for ethical AI providers include:
- operating transparently (51 per cent)
- being backed by explanation (49 per cent)
- describing methodology (45 per cent)
- publishing data (36 per cent)
“Companies must consider ethical AI as they evaluate providers and understand if products operate transparently, are backed by explanations, describe their methodology, and frequently publish their data,” says Laurano. “In addition, addressing ethics in AI builds confidence with employers and candidates who want to understand how their data is being used.”
A group of leading employers is looking to mitigate the “data and algorithmic bias” in human resources and workforce decisions, including recruiting, compensation and employee development.