The advent of artificial intelligence into the recruitment industry is game changing. Maybe it’s time to reconsider the traditional forms of recruiting.
For quite some time, artificial intelligence has been the talk of the town, and it is hailed as a catalyst for innovation across a wide range of industries. The rise of AI use in organizations is due, in part, to the cash flow benefits that a company can enjoy simply by implementing AI practices in comparison to non-adopters. According to experts, organizations that do not use AI systems will be unable to compete with those that do in the future. Let’s take a look at a recent McKinsey Global survey to put the rise into context. According to this, out of 2,395 participating organizations, approximately 1,151 had implemented AI at some level within their business. The findings further report that 10% of organizations used AI for talent acquisition and retention, while 7% used it for performance management. Despite the fact that machine learning and AI are influential in HRM, the scientific literature on the subject is limited.
How can OCEAIN help you?
OCEAIN assists its current clients by utilizing augmented intelligence, in which AI systems and humans collaborate in decision making. Currently, our system is in charge of the initial applicant screening stage, which is based on the Big 5 Personality Traits and psychometrics. This allows HR professionals to concentrate on the stages of talent acquisition, which will examine factors such as empathy, creativity, leadership, and problem solving, all of which are domains that AI has yet to tap into. Overall, these factors contribute to increase employee and organizational efficiency along with decreased time spent evaluating each candidate’s application.
AI recruitment not only saves money but also saves time spent on repetitive tasks.
How do companies benefit from this?
Businesses will almost certainly benefit from this move, both in terms of innovation and cost. Take, for example, IBM, which has used AI in human resources and reported a $1 billion savings since 2011. Furthermore, according to their report, companies can save between 50 and 70 percent of their costs in the long run, as opposed to the current practices, which save only 10 to 20 percent.
AI systems also aid in the recruitment process by making it far more efficient. Let’s take a look at L’Oréal. It Is one of the most well-known brands in the beauty industry. Because of its global recognition, the organization reportedly receives 1 million applications for every 15,000 open applications. Screening each application individually under time constraints puts the HR department under strain and can be extremely taxing. L’Oréal integrated Mya, a chat bot, to streamline the recruitment process. Mya oversees the first stage of the recruitment process, while in the secondary level they encounter an AI system that asks aspirants open-ended questions. The change has yielded promising results, with HR claiming that the system change has saved them 200 hours and allowed them to hire applicants from a variety of backgrounds.
Conclusion
AI has emerged as a disruptor in the technology industry. Although there are some who believe it is “stealing” jobs from the current workforce, it is critical to recognize its potential for creating a whole new range of roles in the future job market. OCEAIN currently gives you a seat at the table to help drive the change forward and reap the benefits. AI will serve as a supplement to human decision- making rather than a replacement. Furthermore, looking at its benefits, particularly in the domain of human resources, it is an opportunity that must not be missed.
References
- Balkrishnan, T., Chui, M., Hall, B., & Henke, N. (2020). The state of AI in 2020. Retrieved 10 November 2021, from https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/global-survey-the-state-of-ai-in-2020
- IBM. (2021). Cost and value transformation in the era of COVID-19 (pp. 1-8). IBM. Retrieved from https://www.ibm.com/thought-leadership/institute-business-value/report/cost-value-transformation-covid-19
- Lewis, N., & Marc, J. (2019). Want to work for L’Oreal? Get ready to chat with an AI bot. Retrieved 10 November 2021, from https://edition.cnn.com/2019/04/29/tech/ai-recruitment-loreal/index.html
- Bughin, J., Seon, J., Manyika, J., Chui, M., & Joshi, R. (2021). Notes from the AI frontier: Modeling the impact of AI on the world economy. Retrieved 10 November 2021, from https://www.mckinsey.com/featured-insights/artificial-intelligence/notes-from-the-ai-frontier-modeling-the-impact-of-ai-on-the-world-economy
- Charlier, R., & Kloppenburg, S. (2017). Artificial Intelligence in HR: a No-brainer (pp. 1-8). PwC. Retrieved from https://www.pwc.nl/nl/assets/documents/artificial-intelligence-in-hr-a-no-brainer.pdf
- Pan, Y., Froese, F., Liu, N., Hu, Y., & Ye, M. (2021). The adoption of artificial intelligence in employee recruitment: The influence of contextual factors. The International Journal Of Human Resource Management, 1-23. doi: 10.1080/09585192.2021.1879206