AI and the Future of Hiring

February 6, 2020
AI and the Future of Hiring

[vc_row][vc_column][vc_column_text]Artificial intelligence becoming an integral part of the world’s marketplace and, indeed, day to day life as well. Businesses have taken to adopting AI in most of their processes to streamline them and focus on other areas for improvement. Cognilytica’s Global AI Adoption Trends and Forecast for 2020 throw up some interesting findings in this regard.

The findings show that 40% of respondents would be implementing AI in their organizations by 2025, and 90% would have some in-progress AI implementation in 2 years. One of the most important findings, however, was that 54% of respondents on this survey said that they plan to implement AI to process automation, and 52% of respondents plan to use AI-enabled conversational systems by 2025, the last finding being key for HR managers and organizations.

AI and HR – The Global Scenario

AI has permeated the HR space as well. The application of AI in this space has enormous potential. McKinsey’s forecast for the impact of AI on the global economy will generate close to 13 billion USD by 2030. Another survey at IBM found that 66% of top executives believe that AI can boost HR and related processes.

Given that even HR professionals feel that AI will greatly benefit HR processes, this burgeoning sector is poised for rapid growth. This will help organizations looking to cut costs. They can do this by outsourcing staffing solutions to third party vendors or HR consultancies who make the process easier by including AI in their hiring process.

AI and HR – The Indian Scenario

Organizations in India are beginning to see the benefits of AI in HR-related processes as well. 70% of the country’s firms are running on completely automated HR functions, and 20% of firms in the country are planning to invest over a one crore INR in the coming financial year according to the state of HR technology India 2019-2020.

Applying AI to the Hiring Process

  • AI can enormously reduce the level of human bias that is evident in the hiring process. Even while striving for impartiality and fairness and inclusivity, there will always be bias during the hiring process. AI can remove biases ad be objective during the hiring process. One other way managers can do this is by approaching the nearest staffing company to see whether they can offer AI-based solutions for hiring.
  • Organizations may have a lot of requirements for a certain position and may find it difficult to find the most appropriate candidates. In some cases, organizations are getting smart by outsourcing staffing solutions via third-party vendors who have access to AI. AI recruiting via chatbots is fast gaining favour in HR circles. Responses are in real-time, and it helps recruiters assess a range of parameters more easily.
  • Placement and retention are also aspects of HR, where AI has proven beneficial. AI’s added benefit of data analytics is a boon for managers. For starters, it can find skills that prospective employees must have in terms of current-day scenarios as well as enabling managers to place new hires on the best teams that will enable their growth. It also helps in retaining key employees by finding areas and skills that can be improved on.

AI also brings to the table added advantage of data security and confidentiality as well as flexibility. AI can help managers develop processes that are tailored to their specific requirements. Managers can choose to outsource staffing solutions to their HR outsourcing services. The organizations or the AI program will aid in creating hiring processes for whatever requirements that managers may need.[/vc_column_text][/vc_column][/vc_row]

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