AI-Powered Hiring: Faster, Smarter, but is it Fair?
The New AI Project | University of Notre Dame
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AI is rapidly transforming recruiting practices, but concerns over fairness, transparency, and bias highlight the need for an approach that preserves human oversight. (5m read).
AI at Work, a column by Mary Claire Anderson.
AI is revolutionizing the talent acquisition landscape–what was once a $610 million market in 2021 is on track to soar to $890 million by 2028, and the number of HR leaders experimenting with generative AI has doubled since 2023. This rapid adoption signals a transformation in how companies hire and manage talent—one that employees must quickly adapt to as AI-driven technologies redefine hiring processes.
From streamlining candidate screening to enhancing engagement, AI is reshaping every stage of job recruitment. 83% of companies report using automated resume scanners that analyze applications for key terms that align with job descriptions, while other companies are using chatbots to mimic recruiter and interviewer behavior.
The benefits of AI hiring systems to companies are undeniable; these automated systems allow companies to process applications at an unprecedented speed, reducing the time to hire. Not only does this help businesses realize cost savings in their HR departments, but it gives HR professionals more time to onboard and train new employees. Moreover, companies are using automated chat assistants to keep potential candidates informed, therefore building trust and leaving candidates with a more positive experience in the recruitment process.
Given the inherently human and deeply complex nature of hiring processes, this shift to AI-driven recruitment has sparked concerns in many potential candidates and HR departments alike.
With only 28% of Americans in favor of using AI to review job applications and 66% reporting that they would not want to apply to a company that uses AI in hiring decisions, many applicants worry about its ability to assess candidates fairly, its tendency to overlook qualified applicants, and its inability to evaluate critical soft skills.
Additionally, while some people say that AI has the potential to eliminate bias from the hiring process, others believe that the systems could perpetuate existing inequalities. For example, Amazon had to discontinue its AI recruitment tool in 2018 after finding out that the model, which was trained on male-dominated resumes, was biased against women and downgraded applications that included the word “women’s” in them. Privacy is another major concern that arises when using AI systems in hiring, as many candidates may not be explicitly aware of how their personal data is being used and stored.
Although companies are using AI to evaluate job applications, they don’t want candidates relying on AI to craft their resumes and cover letters–a double standard that raises concerns about fairness. While businesses benefit from AI’s speed and efficiency in screening applicants, a 2023 Gartner report found that 69% of HR professionals use applicant-tracking software to flag AI-written resumes, with nearly half implementing separate evaluation processes and some even deprioritizing AI-assisted applications. AI company Anthropic even requires applicants to certify that they haven’t used AI in their applications, arguing that AI use prevents them from assessing applicants’ communication skills.
This double standard–where employers leverage AI to streamline hiring but penalize candidates for doing the same–raises concerns about equity, especially as AI tools become a more integral part of professional communication and productivity.
While AI-driven hiring practices may unlock efficiency and cost savings for companies, they also present challenges that cannot be ignored. Given that the current job market is already tight and that hiring is often treated as a transactional process (with little transparency for candidates), it is vital that companies strike the right balance between automation and human oversight to ensure hiring remains fair and effective. Ultimately, the future of recruitment will depend on how well businesses integrate AI as a tool–enhancing, rather than replacing, the human elements that make hiring decisions truly meaningful. ~
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The New AI Project | University of Notre Dame
Senior Editor: Graham Wolfe
Advisor: John Behrens