AI in hiring: the pros and cons

Published date: 19 February 2025

5 minutes read

There’s no doubt that Artificial Intelligence (AI) is reshaping the recruitment landscape, offering both significant advantages and notable challenges. As hiring teams navigate shrinking budgets, increased application volumes, and growing expectations from candidates, many are turning to AI-powered tools to stay ahead.

In fact, a recent IBM survey of over 8,500 global IT professionals found that 42% of companies are already using AI screening to “improve recruiting and human resources.”

So, what does this mean for your organisation? Before diving into the pros and cons of AI in recruitment, it's important to understand the practical ways AI can support your hiring strategy today.

How can AI be used in hiring?

AI is increasingly becoming a valuable tool in the recruitment process, helping employers manage large volumes of applications while improving efficiency and decision-making. Here are a few practical ways it’s being used today:

Resume screening: AI can automatically filter CVs based on job criteria, saving time and helping recruiters focus on the most relevant candidates.

Candidate matching: AI tools can assess a candidate’s suitability by comparing skills, experience, and past performance to job requirements, supporting better shortlisting and reducing time-to-hire.

Admin automation: AI-powered systems can handle tasks like interview scheduling, updates, and reminders, enhancing the candidate experience while reducing manual workload for HR teams.

Data-driven insights: AI can analyse recruitment data to help predict candidate success and improve long-term hiring decisions, giving your team a strategic edge.

AI in recruitment examples

To help you understand how AI can be incorporated into the hiring process, here are a few examples of how businesses are using AI recruitment tools today:

Automated CV screening software: Companies with high-volume hiring needs, like retail or customer service, use AI platforms to instantly scan and rank CVs based on specific job criteria. This reduces manual screening time and speeds up shortlisting.

Chatbots for candidate engagement: Some organisations use AI-powered chatbots on their career sites to answer FAQs, pre-screen applicants, and guide them through the application process.

Real-time offer insights: Some advanced AI tools can analyse factors like market salary trends, candidate engagement, and previous offer outcomes to predict how likely a candidate is to accept a job offer. This allows employers to tailor offers more strategically, which can improve their chances of securing top talent.

What are the pros of AI in hiring?

Efficiency: AI can quickly screen resumes, saving valuable time for hiring managers. With 38% of Canadian jobseekers sending out over 20 job applications per week, AI helps manage the volume by filtering out unqualified candidates early in the process. This efficiency is particularly beneficial for companies facing high application volumes, allowing HR teams to focus on more strategic tasks.
Bias reduction: Properly designed AI systems can reduce unconscious bias by focusing on objective criteria. This can lead to a more diverse and inclusive workforce. For example, AI can be programmed to ignore demographic information such as age, gender, and ethnicity, which helps ensure that candidates are evaluated solely on their qualifications and experience.
Consistency: AI ensures a uniform evaluation process for all candidates, maintaining fairness and standardisation across the board. This consistency is crucial in large organizations where multiple hiring managers might be involved in the recruitment process. AI can help ensure that all candidates are assessed using the same criteria, reducing the risk of human error and subjective judgment.
Data insights: AI can analyse vast amounts of data to identify patterns and predict candidate success. This data-driven approach can enhance decision-making and improve hiring outcomes. For instance, AI can track the performance of past hires and use this information to predict which candidates are likely to succeed in similar roles. This predictive analytics capability can be a game-changer for companies looking to improve their hiring accuracy.
Candidate experience: AI improves scheduling and communication, providing a smoother and more efficient experience for candidates. Automated systems can handle interview scheduling, follow-ups, and status updates, reducing the administrative burden on HR teams. This streamlined communication can enhance the candidate experience, making your company more attractive to top talent.

Considering using AI in your recruitment strategy or looking to hire? Our team at Robert Walters is here to provide the insights and support you need to make informed decisions.

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What are the challenges of using AI in hiring?

Bias in algorithms: Despite its potential to reduce bias, AI can also enable biases if the algorithms are not carefully designed and monitored. This can lead to unfair hiring practices. For example, if an AI system is trained on historical hiring data that reflects biased decisions, it may continue to make biased recommendations. Regular audits and updates to the AI system are necessary to mitigate this risk.
Impersonal: AI lacks the human touch, which can make the hiring process feel impersonal to candidates. Building a connection and understanding a candidate's unique qualities can be challenging with AI-driven processes. While AI can handle initial screenings and administrative tasks, human interaction is still essential for assessing cultural fit and soft skills. Working with a recruiter or third-party service can bridge this gap, ensuring that the hiring process remains personable and human-centric while still saving time and resources.
Over-reliance: Relying too heavily on AI can lead to overlooking important human factors and soft skills that are crucial for certain roles. A balanced approach that combines AI with human judgment is necessary. For example, while AI can efficiently screen resumes, human interviewers are better equipped to assess a candidate's interpersonal skills and cultural fit. Additionally, AI tools that analyse body language or vocal tone can sometimes misinterpret these cues, potentially filtering out highly qualified candidates. This highlights the importance of human oversight to ensure that the best candidates are not overlooked due to algorithmic errors.
Costly: Implementing AI solutions requires significant investment in technology and training to ensure it’s executed properly. For many employers, especially those with budget constraints, this can be a major hurdle. According to our survey, 48% of employers state that budget constraints are the leading challenge when hiring talent. While AI can ultimately save costs by improving efficiency, the initial investment can be substantial.
Transparency: Candidates may have concerns about data privacy and how their information is being used by AI systems. Ensuring transparency and building trust is essential. Employers need to communicate clearly about how AI is used in the hiring process and ensure that candidate data is handled securely and ethically.

How to use AI responsibly in recruitment?

While AI can streamline and enhance your hiring process, it’s essential to use it thoughtfully and ethically. Here’s three key strategies to help ensure your approach is responsible and effective:

Prioritise data privacy and transparency

Be clear with candidates about how their data is collected, used, and stored by AI recruitment tools. Choose technology providers that comply with relevant data protection regulations, and make sure all data handling practices align with your organisation’s privacy standards.

Keep humans in the loop

AI should support human judgement, not replace it. Use it to automate repetitive tasks and provide insights, but always have people involved in final hiring decisions. This ensures important qualities like cultural fit, emotional intelligence, and soft skills aren’t overlooked.

Regularly audit for bias

Review your AI systems regularly to check for unintended bias or inaccuracies. Ensure the algorithms are trained on diverse, representative data and update them as your hiring needs evolve.

Keeping the human touch in recruitment

AI can be a powerful ally in modern recruitment, but it’s important to focus on improving efficiency without compromising fairness or trust.

Technology should never replace the value of genuine human connection; candidates still want to feel seen, heard, and understood, especially in a competitive job market. That’s why the most successful hiring strategies use AI to handle the admin, while keeping people at the heart of decision-making.

By blending smart technology with personal interaction, you can create a more efficient, inclusive, and engaging recruitment experience that works for both your team and your future hires.

Explore how artificial intelligence is impacting recruitment and careers in 2025, and what it could mean for your hiring strategy.

FAQs

What is an example of AI bias in recruitment?

AI bias in recruitment can occur when algorithms are trained on historical hiring data that reflect existing human biases. For example, if a company’s past hiring data favoured male candidates for technical roles, an AI system trained on that data may also prioritise male applicants, even if gender is not explicitly considered. This highlights the importance of regularly auditing AI recruitment tools to ensure fair and unbiased decision-making.
How many companies use AI in recruiting?

The use of AI in recruiting is growing rapidly. According to an IBM study, 42% of global companies surveyed are already using AI to support recruitment and HR functions. From CV screening to interview scheduling, more organisations are adopting AI technology to streamline their hiring processes and improve efficiency.
Are companies using AI to hire?

Yes, many companies are now using AI to assist with various stages of the hiring process. AI recruitment tools are being used to screen applications, match candidates to roles, reduce bias, and even improve the candidate experience through automated communications. While AI doesn't fully replace human decision-making, it plays a valuable role in helping employers hire faster, more fairly, and more strategically.