Research

State of AI in
Talent Acquisition
 Artificial Intelligence (AI) is
revolutionizing the way people do
their jobs across industries.

Early adoption of the technology

is creating efficiencies and
empowering professionals with new
tools, while consumers are seeing
faster, better brand interactions.
Introduction

Talent acquisition (TA) professionals and candidates

are among the industry professionals who are
becoming familiar with AI and understanding how it
can transform the recruiting experience.

To provide an in-depth look into how organizations

are using AI in the recruiting process, Modern Hire
developed a survey that sought to determine the
following:

• The level of adoption of AI-enabled tools to

enhance recruiting processes, and how the
technology is specifically being used today. Methodology
• The attitudes toward and comfort level with AI
Survey 1
among both TA professionals and candidates.

• What current candidates desire most in the 500 TA professionals at companies with
recruiting process, and how AI can be used to more than 500 employees. Modern Hire
meet their expectations. surveyed both recruiters (defined as
individuals directly involved in day-to-day
• How candidates and TA professionals view the searching, screening and interviewing
role of AI in reducing bias during the recruiting candidates) and TA leaders (decision
process. makers within organizations who oversee
recruitment strategy at a higher level).
• How TA leaders and recruiters see AI being used
Respondents included TA professionals
in the hiring process in the future, and how they
working in a variety of industries.
believe it may augment the way they do their jobs.
Survey 2
Modern Hire conducted two surveys to answer
these questions and provide a holistic picture of the 500 individuals who indicated they were
state of AI in talent acquisition. The first, a survey actively looking for a job, or had applied for
of TA leaders and recruiters across a variety of a job in the past year.
industries, asked about their experiences with AI
and their attitudes toward its use. Secondly, current
candidates were surveyed about their openness
toward interacting with AI, their expectations during
the hiring process and their experiences with
discrimination and bias in the job search.

3 | State of AI in Talent Acquisition

Key findings

AI in talent acquisition is catching on —

­­
but not without the help of humans

01 02 03
Fifty-one percent of AI is helping TA Candidates continue
organizations already professionals meet to experience
use AI to automate the biggest demand discrimination, and
administrative tasks of candidates — TA professionals
and free up time for a speedy hiring are working toward
recruiters. Since AI process. Currently, more equitable
isn’t yet being used AI is primarily used hiring practices. Both
for higher-level, to cut down on groups report seeing
qualitative tasks, time-consuming significant potential
this indicates the processes like for AI to reduce bias
technology is still screening, sourcing, in the recruiting
very much in the and scheduling, the process once the
early adoption phase. survey found. technology is further
refined.

4 | State of AI in Talent Acquisition

Early adoption, promising results

There is a near even split of companies that do and don’t use AI in their current
recruiting process. Of the 51 percent that do, the top three uses in recruiting are
administrative tasks that do not require in-depth decision making. For instance, in
a separate survey of TA leaders, Modern Hire found the industry shows greater
comfort using AI earlier in the hiring experience. The top uses of AI in recruiting
include:

57 %
52 %
52 %
Screening Sourcing Scheduling

By contrast, recruiting functions that involve in-depth decision making do

not yet involve AI to the same degree:

34 %
36 %
37 %
Selecting Interviewing Onboarding
candidates candidates candidates

5 | State of AI in Talent Acquisition

Though more than one-third of companies The current use of AI for administrative
currently use AI for selecting, interviewing, and functions tracks fittingly with the problems TA
onboarding candidates, Modern Hire predicts a professionals are trying to solve. Here are the
sustained period of early adoption lasting several top five:
years. Slower adoption is likely to occur because
most organizations are only automating parts of
the hiring process where candidates feel most To automate admin tasks and free
comfortable interacting with the technology. 54% up recruiters’ time
Organizations also are striving to ensure their
use of AI aligns with their overarching hiring
strategies, which could include mitigating risk.
With this in mind, it’s critical for TA leaders to 54% To better assess fit for the role
determine their teams’ risk/reward tolerance.
Some TA leaders might be averse to AI for
reasons including industry standards, regulatory
To better manage high application
requirements, data privacy, and overall 51% volume
security. However, organizations that want to
be truly successful should use an engaging,
informative process to spell out how automating
To create more consistency in the
administrative tasks can benefit candidates.
47% evaluation of candidates

To better manage high-volume

45% hiring

6 | State of AI in Talent Acquisition

 57 %
Eliminating bias and meeting diversity goals also
are issues TA professionals are trying to use AI to
solve, with 38 percent and 35 percent, respectively, are unsure whether
reporting the use of AI in this capacity. their company will
implement AI within
the next five years.
The future of AI at companies that have not yet adopted the technology is
uncertain. Among TA leaders and recruiters whose organizations do not use
AI, 57 percent are unsure whether their company will implement it within the

6 %
next five years.

Still, those who have adopted the technology are seeing results. The vast
majority of TA professionals (93 percent) believe AI helps them in their
role. Also encouraging: 88 percent of recruiters and TA leaders say AI of candidates
implementations augment a recruiter’s role and are not designed to replace
reported being
recruiters, and 59 percent report they are not worried its use will entirely
eliminate recruiting jobs. Eighty-seven percent of TA leaders and recruiters comfortable with
also say that AI improves the candidate experience. being evaluated
using facial
At the same time, TA professionals should acknowledge candidates’ comfort
recognition
level with certain types of AI. For instance, candidates aren’t quite ready to use
technology.
more advanced versions of AI, like voice or facial recognition.

7 | State of AI in Talent Acquisition

TA leaders also should be upfront with candidates
when it comes to communicating how AI is being
used in the hiring process. It should be clear, for
example, when candidates are interacting with
a chatbot, as 82 percent of candidates say it is
important for them to be informed they are speaking
with this technology. When asked how they would
feel about not being informed about interacting with
a chatbot, we found that millennials are the most
comfortable (35 percent) and baby boomers the
least (19 percent).
Candidate discomfort could be attributed to
an unfamiliarity or misunderstanding with
how chatbot technology is applied. When
used properly early on, chatbots enhance
the recruiting process for both candidates
and recruiters — the technology is not
designed for or recommended to replace
critical human conversations.
TA professionals are on the same page when it
comes to a need for transparency. Seventy-six
percent of those surveyed said a candidate should
know when they are interacting with AI in the
recruiting process. Having clear disclaimers about
which parts of the process may include automation
or AI is important.
Attitudes toward AI in recruiting
based on age level:
35
Millennials are the
%
19
Baby boomers are
most comfortable the least comfortable
8 | State of AI in Talent Acquisition
Section Key Takeaways
Companies considering new AI tools
should examine their current processes
and identify specific problems that need
to be solved in order to choose the right
technology.
When a problem is indeed identified, find
technology partners that align culturally
with a company’s affinity for risk versus
reward.
Only implement AI tools that have
been proven to enhance the hiring
process and candidate experience.
Taking a phased, pragmatic approach to
incorporating AI into recruiting is key.
TA leadership needs to ensure alignment
with their employer brand.
The use of AI in recruiting should easily
give the candidate more information
about the company as the company
gains information about the candidate.
Seek and implement technology that
allows for the collection of valuable
information and insights while providing
a fast, transparent experience for
candidates.
%
 Modern tech is helping organizations adapt to candidate preferences
Above all else, the survey found
there’s a need for speed when it
comes to candidate expectations
— 41 percent of candidates ranked
“fast application process” as the
most important aspect of the job
search.
Technologies that aim to quicken the hiring process
already are available beyond AI — and candidates
are open to them. The vast majority of respondents
indicated they would be open to video interviews
during the hiring process.
Given that the comfort level of video interviewing
transcends generations, it’s clear candidates
are ready to use technologies that speed up the
process.
Video interviewing comfort level by age
54—72
39—53
Age
24­—38
18—23
0% 25% 50%
9 | State of AI in Talent Acquisition
Section Key Takeaways
TA professionals should let the
comfort level of their candidates
dictate what technologies to use, and
at what point in the recruiting cycle to
adopt them. Surveying candidates is
one way to solicit feedback. However,
because most recruiting technology
applications are data-driven at heart,
there should be constant analysis of
how candidates are interacting with
the tools throughout the recruiting
process.
It’s clear candidates still desire a
human element in the process, and
recruiters and TA leaders should
make every effort to be transparent
when AI is indeed being used.
75% 100%
How AI can help reduce bias and discrimination

According to the data, bias

and discrimination are notable
According to the Modern Hire data, bias and
discrimination are notable problems in hiring. Forty-
problems in hiring.
four percent of all candidates say they’ve experienced
discrimination in their job search. Of those who’ve
experienced discrimination, more than three-quarters
are non-white.
The drive to improve diversity in the workplace is no
Our survey found that well over half of candidates surprise. There has been a clear shift in recent years
and recruiters feel AI will be able to drive down bias in the way companies treat diversity and inclusion
in the hiring process. Additionally, among candidates initiatives. Instead of simply “checking a box” and
who say they’ve experienced discrimination, 56 using diversity and inclusion goals for marketing
percent said they believe AI may be less biased than purposes, it’s apparent that organizations are truly
human recruiters. Forty-nine percent of those who realizing the value of these initiatives and fully
have experienced discrimination also believe AI may incorporating them into their core values. Our survey
improve their chances of getting hired. found that only 15 percent of the TA leaders and
recruiters reported no pressure at all to increase
On the other side, nearly half of the combined diversity.
recruiters and TA leaders say they’re getting pressure
to bolster racial and gender-based diversity through
better hiring practices. For many, AI may be one way
to do so. Both recruiters and candidates are aligned
in recognizing the potential of AI to mitigate bias and
improve diversity.

10 | State of AI in Talent Acquisition

There also is value beyond diversity being the
intrinsic “right thing to do.” According to data from
McKinsey, companies in the top quartile for ethnic
and racial diversity financially perform 35 percent
above the median in their respective industries. The
study also shows companies in the same category
perform 15 percent better than industry medians
when there is gender diversity.
Recruiters and TA leaders report feeling
pressure to have more representative talent
at their organization. Here is a breakdown of
the areas in which they report a request for
greater diversity:
Section Key Takeaways
There is no out-of-the-box solution.
TA professionals need to carefully
determine what specific parts of their
hiring process are causing a lack of
diversity. Is it bias in the screening
process? Is it that they aren’t looking
in the right places? Is it a problem with
biased job descriptions? Technology
solutions exist for each of these issues,
but it is critical an organization choose
the right partner and technology.

AI is still not perfect. Companies may

believe their existing algorithms are

48 %
29 % helping to reduce bias, but in some
cases, they may be introducing it.
Organizations must periodically re-
examine their automated processes to
Racial diversity Age diversity ensure the programmed goals are being
accomplished. Examples like AI facial
recognition technology being unable to
read the faces of those with dark skin

42 24
show it’s possible this technology can
% % lead to more discrimination, not less.

Companies should look beyond

technology and consider training, and
Gender diversity Education diversity even certification, for all those involved
in the recruiting and hiring process. AI
looks promising to eliminate bias, but
until then, companies can take immediate
and important steps by partnering with
diversity and inclusion experts.

42
Experience diversity
%
15 %
No pressure to
increase diversity

11 | State of AI in Talent Acquisition

The state of AI and the job search: Critical mass is
far from being realized

Despite advances in AI
recruiting technology, survey
Candidate comfort levels with AI in more advanced
stages of the recruiting process are increasing. This results make it clear the
is an opportunity for TA professionals to take a hard
look at current processes and select AI technologies human element must remain.
that will free them up to focus on the more strategic
parts of their job and meet candidates’ demands of
a faster hiring process.

However, it is critical that companies looking to
adopt AI carefully consider what problems AI is
actually solving, as well as keep a close eye on how
it is affecting the candidate experience. Choosing
the wrong partner or solution can be damaging
to the company’s brand, and may turn away more
qualified candidates than it creates.
Because of this increased candidate comfort level
with technology, the role of recruiters and TA leaders
is changing. As data becomes more pervasive in HR,
TA professionals will need to have more analytical
and technical skills to utilize it. TA leaders who invest
in training or further education for their recruiting
team are keeping ahead of the curve.

Despite advances in AI recruiting technology,

survey results make it clear the human element
must remain. While candidates are comfortable with
technology like chatbots and video interviews during
some parts of the process, they have made it clear
that they do not desire a completely automated
recruiting experience.

12 | State of AI in Talent Acquisition

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