The Hidden Risks of AI in Recruitment

Is Losing the Human Touch Eroding the Hiring Process?

As artificial intelligence (AI) transforms recruitment, companies are increasingly drawn to its promise of efficiency, objectivity, and cost savings. But as this technology becomes more embedded in hiring, we need to ask: what do we lose when we replace human interaction with algorithms? Over-reliance on AI risks not only alienating candidates but also creating a disengaged workforce, rising attrition, and trends like "quiet quitting."

This article explores how AI, without sufficient human oversight, is undermining the hiring process—and why it’s essential to restore the human touch in recruitment.

When AI Undermines the Candidate Experience

While AI offers speed and consistency in managing applications, its impersonal nature often leaves candidates feeling dehumanised. A powerful example comes from Anna Spargo-Ryan, whose experience with AI-driven feedback from a chatbot was far from encouraging. After applying for a job, she was subjected to an automated “personality assessment” that critiqued her in ways that felt invasive and insensitive.

This highlights a growing issue: AI lacks emotional intelligence. It cannot interpret context or offer the empathy that humans can. In traditional interviews, recruiters can adjust their feedback to be both constructive and supportive, ensuring that even rejected candidates feel valued. But with AI, feedback is cold, algorithmic, and often harsh—alienating candidates and harming their confidence.

One of the most troubling aspects of AI-driven recruitment is its potential impact on vulnerable candidates, such as the long-term unemployed. Studies show that long-term unemployed people are at least twice as vulnerable to mental illness, with higher risks of depression, anxiety, and even suicide. In this no-longer-hypothetical situation, it seems only a matter of time before an AI platform sends an unsolicited “better than no response” personality assessment to one of these individuals, without any supports in place if they need them. Such scenarios could exacerbate feelings of isolation and worthlessness, doing more harm than good.

In an already stressful job market, automated systems risk compounding job-seekers’ anxiety, especially those who are vulnerable. When candidates are treated as data points, they can feel dismissed and undervalued, which can have long-lasting effects on their relationship with work.

The Long-Term Costs of AI in Hiring

AI’s impersonal nature doesn’t just affect candidates during the hiring process—it has significant implications for employee engagement after they’re hired. According to Gallup’s 2024 State of the Global Workplace report, 62% of employees worldwide are disengaged, and 15% are actively disengaged. This disengagement has serious consequences for both individual wellbeing and organisational productivity, costing the global economy nearly $8.9 trillion annually.

AI-driven hiring could be contributing to this disengagement. When candidates experience a recruitment process that lacks human connection, they are more likely to feel detached from the company, even before they start. This detachment can lead to trends like "quiet quitting"—where employees do the bare minimum to get by—further eroding workplace culture and productivity.

Without human recruiters to assess cultural fit and soft skills, candidates who are not genuinely aligned with a company’s values may slip through the cracks. This mismatch can lead to higher attrition rates, as employees realise they’re not suited to the company after all.

Eroding the Hiring Process: Can AI Really Replace Human Judgement?

As AI takes on a larger role in recruitment, the traditional hiring process—imperfect as it is—risks being eroded. While Martha Gill points out that job interviews are flawed and often biased, she also warns of the dangers of allowing AI to take over entirely. Humans bring emotional intelligence, adaptability, and empathy—qualities that are essential for assessing a candidate’s fit within a team or organisation.

AI may excel at analysing qualifications, but it struggles with nuance. For instance, it cannot gauge how well a candidate might handle the complexities of a team dynamic or respond to pressure in a real-world situation. Cultural fit, teamwork, and emotional intelligence are critical components of success in many roles, and these are qualities that require human intuition to assess.

Gill suggests that AI could eventually replace both interviewers and candidates in an entirely automated hiring process. While this might eliminate bias, it would also strip away the human elements that make recruitment meaningful. The hiring process is not just about filling roles—it’s about building relationships and fostering a sense of belonging.

Restoring Humanity to Recruitment

So, how can companies harness the power of AI without losing the human touch? The answer lies in balance. AI can play a valuable role in handling repetitive tasks, such as résumé screening or scheduling interviews, allowing human recruiters to focus on the more critical aspects of the hiring process—such as assessing soft skills, cultural fit, and emotional intelligence.

Human oversight is essential. While AI can deliver efficiency, it should not be left to evaluate candidates entirely on its own. Human recruiters should be the ones to provide context and interpret AI’s findings. Feedback, for instance, should be delivered by people, not bots, to ensure candidates feel supported, not scrutinised.

Incorporating post-AI feedback strategies is crucial. When AI systems are used to gather data, human recruiters must step in to explain that data in a way that motivates candidates and helps them improve. This preserves the candidate’s dignity and maintains a sense of personal connection.

Why AI Should Assist, Not Replace, Human Recruiters

AI offers immense benefits in recruitment, but it must be used thoughtfully. Efficiency should not come at the cost of empathy. If companies allow AI to dominate the hiring process, they risk disengaging candidates, driving up attrition, and eroding the fundamental relationship between employer and employee.

Recruitment is more than just a process of matching skills to roles—it’s about finding people who will thrive within an organisation. For this reason, human interaction will always be essential. AI can assist, but it cannot replace the judgement, empathy, and intuition that human recruiters bring to the table.

As businesses continue to adopt AI in hiring, the challenge is not whether to use AI, but how to balance its capabilities with the human touch that candidates still desperately need.