The Artificial Intelligence sector is growing at a CAGR of 38.1% between this year and 2030. In 2025 it is estimated that 97 million people will be working within the AI space. With a 120% expected growth year-over-year it is essential for businesses to prepare themselves for the impact it could have to their day-to-day business activities. Specifically, in recruitment this introduction will have the largest impact to the early-stage activities within the hiring process. These parts of the process can be tedious and often repetitive. From receiving the job requisition, advertising the role, receiving, and searching for candidates, and filtering candidates. Having the assistance of an AI tool will enable teams to maximize their efficiency and effectiveness of their talent acquisition strategies.
Research from the US Department of Labor has shown that the traditional approach is only 16% effective in finding the right candidate for a job. Many recruitment departments and firms have begun to implement prescreening assessments that are required to apply for an advertised role. The issue with this is that these assessments are time consuming on the candidate side, further, dependent on the structure of it, it may not be a reliable indicator on whether the candidate is a fit for a role. Moreover, individuals have a chance to find and fill out information that they may not have knowledge of previously to the test.
84% of HR firms believe that AI would be a useful tool, but 68% of them are not prepared to implement the change into their operations. Financial cost is something that is of concern as this will be a pioneering technology within recruitment. The advantages could outweigh the costs because it can impact turnaround time as well as quality.
It is exciting to see the changes that the sector is going to experience in the upcoming years. Despite this, it will be crucial to adapt.
This is the first in a series of articles around artificial intelligence and the recruitment industry by our in-house expert, Callum Mackinnnon.
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