AI in Recruitment: A Study of Present Conditions and Future Possibilities

AI is revolutionizing ordinary recruitment. Is executive search next?

The introduction of Chat GPT to the world in early 2023 reignited the conversation surrounding artificial intelligence and how close the technology is to impacting daily life as we know it.

One area that is already seeing significant changes as a result of AI is the field of recruitment. The question is, how much does AI already influence the hiring and firing of workforces? And how much will it impact more nuanced executive recruitment efforts in the future?

Existing AI in Talent Management

Artificial intelligence has already been busy redefining the employee and recruitment landscape for a while now. For instance, performance analytics has become a growing preference for leaders looking to refine their workforces.

The practice of performance analytics consists of a unique merging of data analysis and behavioral science that enables managers to pinpoint where their teams are excelling and where they need improvement. Performance analytics utilizes increasingly complex algorithms and artificial intelligence solutions to deliver its results.

It’s also no secret that AI is already used directly in the employee hiring process. AI-driven algorithms help HR representatives sort through resumes, identify keywords and desirable traits, and even measure personality based on definable characteristics. This yields several key benefits, including the ability to:

• Speed up the recruitment process.
• Identify a larger pool of qualified candidates.
• Eliminate human bias.
• Streamline background searches and reference checking.

However, while AI is a useful tool, it does raise some concerns.

The Dark Side of AI in Recruitment

The World Economic Forum points out that the current AI systems utilized in recruiting can create as many issues as the problems that they solve. One of the major concerns is the introduction of bias while hiring. This may sound a bit surprising, but the biases that come from AI aren’t the same as human biases. Harvard Business Review emphasizes things like shaping the candidate pool and excessively narrowing the candidate funnel as potential biases created by AI.

AI is particularly pernicious when it’s introduced to a hiring system without the knowledge of the recruiters or applicants that are operating around them. Recruiter.com adds to the conversation by highlighting the fact that AI hiring tools can be less accurate than experienced recruiters. They are also impersonal and can easily fail to keep up with current regulations if they aren’t constantly updated. Most importantly, they lack human judgment.

These concerns have lawmakers around the world sitting up and paying attention. In fact, in some areas like New York City and the EU, government officials are actively considering what limitations and barriers they should implement in response.

While there are some serious red flags that come with current AI in search, recruiters aren’t using these solutions just for fun. They’re solving real-world issues in the recruitment space, from saving time to improving communication and identifying hidden talent. The benefits far outweigh the risks, which is another way to say that AI isn’t going anywhere any time soon.

AI’s Potential Future in Executive Search

So, how does all of this impact executive recruitment? After all, the way companies hire executives is very different from a run-of-the-mill job advert or interview. It’s a complex, multi-faceted process that is difficult to formulate. Nevertheless, there are ways that AI could begin to influence even the complex upper echelons of the hiring world in the near future.

For instance, the 24/7 nature of AI makes it an excellent tool for monitoring candidate availability. The faster an executive recruiter or company with an open C-suite position can become aware of an available candidate, the better chance they have of recruiting them before a competitor learns that they’re on the market.

AI also has the potential to improve the quality of the executive recruitment process by executing more thorough background checks and automating certain reference-checking activities. In other words, the increasing sophistication of AI platforms is making it more likely that they’ll be able to help with any data involved in the recruitment process — regardless of its complexity.

It’s also worth noting that AI could impact executive search by replacing certain roles within the C-suite itself. In fact, it’s been years since the Japanese firm Deep Knowledge captured headlines around the world by appointing an AI robot named Vital to its board of directors. Vital isn’t the only example of this trend, either. As AI continues to develop, its chances of performing larger roles, both as administrators and leaders, is likely to improve.

At the end of the day, though, it’s hard to envision a point in the near future where AI plays too large of a role in the actual recruitment of executives. The process is simply too nuanced and complex to approach in an overly-methodical manner.

“At the end of the day, though, it’s hard to envision a point in the near future where AI plays too large of a role in the actual recruitment of executives.”

Instead, as AI advances, organizations like Stanton Chase will continue to look for ways to implement its growing capacity into our own search strategies. AI may not be able to recruit executives on its own yet. But with its help, executive recruiters that are willing to take advantage of its potential could become more efficient and effective at their jobs than ever before.

About the Author

Peter Deragon is a Managing Director at Stanton Chase Los Angeles. He is also the Global Practice Leader of our Supply Chain, Logistics, and Transportation Practice Group. Additionally, Peter is active in the CFO Practice Group and financial services, where he started his career.