The World Economic Forum highlights 5 major drivers expected to transform the global market by 2030, including technological advances as a key influence. Technological change is expected to have one of the biggest impacts in the workplace, and we’re seeing this manifest across a multitude of recruitment strategies and methods. With such a huge emphasis on digital transformation, is your business ready to embrace it?
AI is a critical topic in a rapidly evolving digital age, and a key enabler of the expected transformation. Increased automation has supported data-driven decision making, improved efficiencies, significantly advanced systems and opened a whole new world of innovation.
Given the time and money that goes into hiring, this all sounds great, right? What could possibly go wrong?!
In fact, lots can go wrong, which has been publicly showcased many times over the years. From costly AI mistakes, harmful advice, and discrimination claims, the risks are not to be ignored.
So, how should we be using AI in the workplace, and where should we draw the line?
With so much controversy and evidence to suggest drawbacks and benefits, it really does come down to the how and why you’re using it. Let’s start by reviewing how AI can be harnessed in the recruitment world, and some of the risks to be aware of.
Benefits of using AI when recruiting:
Save Time and MoneyUtilising technology can speed up admin processes, saving time and money for more purpose driven hiring activities. Through investing in innovative systems, hiring managers can evolve processes to promote an enhanced, tailored recruitment experience. |
Enhance decision-makingAI can be utilised to analyse data and provide further insight. When balanced appropriately, this can lead to faster, more robust decisions being made and desirable solutions being achieved. |
Track PerformanceStrong business relationships require trust, and transparency, therefore, it’s important hiring standards remain high, and realistic. Using AI tools can monitor speed, efficiency, and success rates providing necessary feedback for reflection. |
Improve CommunicationManaging relationships is a vital aspect of the hiring process. AI can be utilised to automate the simple, admin processes, creating more time to build meaningful relationships and enjoy the recruitment journey is enjoyable for all parties. |
Drive Quality HiringCompanies can enhance the probability of a successful hire through data analytics and psychometric testing to complement the recruitment process. Balancing automation with thorough practices can lead to finding the right hire, the first time. |
Risks, challenges, and limitations:
Robotic CommunicationAI written emails or on-line chatbots are impersonal, and not always well received. Heavy reliance on automated communication can lead to frustration, loss of trust, and poor relationships. |
Automated DecisionsYes, AI can be an excellent tool to enhance decision making, but the need for human oversight is still vital when seeking the best hiring outcomes. Sole reliance on AI to make decisions can lack empathy, consideration, and alliance with company or individual values. |
Bias and DiscriminationAutomated data analysis is not without risk of bias and discrimination. AI can help to prevent these, but there is also a risk of perpetuating bias based on previous trends. Using AI requires a careful approach, compliance checks, and relevant knowledge to help mitigate these risks. |
Culture FitWhilst more and more tools are being developed to enhance matchmaking, there are limitations to matching candidates to jobs if companies remove human skill sets. The best cultural, personality fit is accomplished through engagement, and relationship building. |
Adapting to TechnologyAutomation is growing fast, but there are also concerns over whether companies can keep up. There have been notable struggles with adapting to new technologies, which should be evaluated prior to investment to understand a target audience and how to manage the changes. |
From a recruitment perspective we are seeing a huge rise in the use of AI. From chatbots to automated email responses and enhanced systematic procedures, there is an abundance of emerging technology to be considered.
Evidence suggests that the future of AI is exciting for the recruitment world, with plenty of benefits including cost savings, better-quality hires and time saved. However, there have also been ethical and legal concerns raised, which must be carefully evaluated.
At Smith and Reed, we aim to strike the best balance, enabling us to harness innovative practices to improve efficiencies, whilst ensuring we don’t compromise on our “human-skills” when building meaningful relationships and providing our hiring solutions.
Looking to redefine your recruitment strategy in 2025? We would love to hear from you:
Our blogs are developed by individuals (no AI here!) and formed based on collective opinions developed through wider research.
Research sources:
· The Future of Jobs Report, World Economic Forum (2025)
· When AI goes wrong: 10 examples of AI mistakes and failures, Evidently AI (2024)
· The Power of Artificial Intelligence in Recruitment: An Analytical Review of Current AI-Based Recruitment Strategies, Wael Abdulrahman Albassam (2023)
· How Artificial Intelligence Benefits Recruiting, Forbes (2023)
· AI in Recruiting 2024: pros and Cons, Korn Ferry (2024)