Analysis of the factors influencing the rate of acceptance of AI-based

CV Processing and HR Task Automation

SUBMITTED BY

Riya Gupta

LC00015001419

LINCOLN INTERNATIONAL COLLEGE

2023

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 Contents
CHAPTER 1. INTRODUCTION.........................................................................................................3

1.1 Background..................................................................................................................................3

1.2 Statement of Problem..................................................................................................................3

1.3 Research Questions.....................................................................................................................4

1.4 Objectives....................................................................................................................................4

1.5 Significance.................................................................................................................................5

CHAPTER 2. LITERATURE REVIEW..............................................................................................6

2.1 Thematic Review.........................................................................................................................6

2.1.1 AI Techniques for Resume Screening..................................................................................6

2.2 Challenges of AI-based Resume Screening.................................................................................8

2.3 Benefits of AI-based Resume Screening and Automation..........................................................9

CHAPTER 3. RESEARCH METHODOLOGY.................................................................................10

3.1 Research Philosophy.................................................................................................................10

3.2 Research Design and Approach.................................................................................................10

3.3 Research Method.......................................................................................................................10

3.4 Data Collection Procedures.......................................................................................................11

CHAPTER 4. RESULTS AND ANALYSIS......................................................................................13

CHAPTER 6. CONCLUSION............................................................................................................14

References...........................................................................................................................................14

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 CHAPTER 1. INTRODUCTION
1.1 Background

Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing
an organization's employees. Every business faces the challenge of finding the best employees
which is a difficult and time consuming task for Human Resource. This challenge is made more
difficult by the enormous volume of candidates. Using manual screening, the recruiter must go
through each application to weed out more than 50% of unqualified candidates. Additionally,
manual screening leaves room for human error. Utilizing an automated system streamlines the
procedure and eliminates unqualified candidates. Additionally, automated resume screening gets rid
of any initial biases that a recruiter could have had. Important key words and specified credentials
will be used to swiftly identify the individuals who meet the requirements. Almost all areas of
HRM have sophisticated software that automates varying degrees of many HR processes, along
with other added features such as analytics. For example, job candidate recruiting has seen
enormous growth in the number of software platforms and systems that help both employers and
job seekers to electronically match organizations and candidates with each other and then help
manage the interviewing, hiring and employment processes.

Artificial intelligence, which is one of the most advanced and growing technologies today, has
helped a lot in improving the HR department. AI automates and completes the majority of low-
value HR tasks so that more attention may be focused on the strategic scope of work. AI has the
potential to revolutionize employee experiences in a variety of ways, from recruiting to talent
management, by processing massive amounts of data quickly and accurately. 

1.2 Statement of Problem

It can be difficult task to find a suitable candidate for a job when the number of applicants are too
many. Manually going through the CVs of all the candidates is very time consuming and labor
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intensive. Additionally, this method of reviewing resumes is unfair because many qualified
candidates do not receive the attention they merit. This may result in choosing applicants who are
inappropriate for the job or missing out on the best candidates. Secondly, there may exist biasness
while choosing employee by recruiters. Another challenge in that is that most of the resumes are
redundant, hence the task becomes lengthy and tiresome.

1.3 Research Questions

1. What are the methods used for resume selection in developed and
developing countries?
2. How much progress has been made in AI and NLP to automate the
resume selection?
3. How efficient and effective are the proposed model till date?
4. Can we trust such system completely?

1.4 Objectives

Manually reviewing applications takes up the majority of recruitment time. Moreover, most of the
resumes submitted are unqualified. It is estimated that a recruiter must spend more than 24 hours
reviewing resumes and shortlisting applicants for interviews before making a single hire. These
problems can be solved efficiently with the help of Artificial Intelligence

The objectives of this thesis are:

1. To review the literature on AI-based resume screening and automation.

2. To compare the performance of AI-based resume screening and automation with traditional
rule-based systems.
3. To examine the potential benefits of AI-based resume screening and automation, such as
improved accuracy, reduced time and cost, and increased diversity.

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 4. To contribute to the existing literature on AI-based resume screening and automation by
providing new insights and recommendations for future research in this area.
5. To analyze the impact of AI-based resume screening and automation on the hiring process,
including the efficiency and effectiveness of the process and the perceptions and
experiences of job candidates and hiring managers.

1.5 Significance

Research on AI-based resume automation and screening can contribute to the broader conversation
about the role of AI in society. As AI technologies continue to develop and become more prevalent
in our daily lives, it is important to examine their impact on society and ensure that they are used in
a way that is beneficial and equitable for all.

Similarly, it can have a significant impact on the recruitment industry by providing new insights
into the potential benefits and challenges associated with these technologies. This can inform
industry practices and guide future research in this area.

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 CHAPTER 2. LITERATURE REVIEW

A literature review is a survey and discussion of the literature in a given area of study. It is a
concise overview of what has been studied, argued, and established about a topic, and it is usually
organized chronologically or thematically. In this chapter, we review the literature on AI-based
resume screening and automation.

2.1 Thematic Review

Resume screening is a crucial part of the hiring process as it helps the recruiters to shortlist the most
suitable candidates for the job. The traditional methods of screening resumes are time-consuming
and may not always yield the best results. Hence, the use of Artificial Intelligence (AI) in resume
screening has become popular in recent years. In this literature review, we will discuss the various
AI techniques used for resume screening, such as NLP, machine learning, and deep learning. We
also examine the challenges associated with AI-based resume screening, including bias and data
privacy issues. Finally, we review the literature on the benefits of AI-based resume screening and
automation, such as improved accuracy, reduced time and cost, and increased diversity.

Below are the different AI Techniques for Resume Screening used for Resume Processing and
Automation.

2.1.1 AI Techniques for Resume Screening

Resume screening is a crucial step in the recruitment process, and it can be a time-consuming task
for recruiters to manually review and analyze large volumes of resumes. Artificial intelligence (AI)
technologies are increasingly being used to automate the resume screening process, allowing
recruiters to quickly identify and shortlist the most qualified candidates for a job opening.

AI-based resume screening uses various techniques such as NLP, machine learning, and deep
learning to extract relevant information from resumes and identify suitable candidates for a job
vacancy.

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2.1.1.1 Natural Language Processing
NLP is used to analyze the language used in resumes and identify keywords and phrases relevant to
the job requirements. NLP algorithms can analyze the content of resumes, such as keywords, skills,
and qualifications, to match them with job requirements.

2.1.1.2 Machine Learning

Machine Learning (ML) is another AI technique used in resume screening. ML algorithms can
learn from historical data and use it to identify patterns and make predictions. In resume screening,
ML algorithms can learn from past hiring decisions and use the information to identify potential
candidates. Machine learning algorithms such as decision trees, random forests, and Support Vector
Machines (SVMs) are used to classify resumes into different categories based on the job
requirements.

2.1.1.3 Deep Learning

Deep Learning (DL) is a subset of ML that uses neural networks to simulate the human brain's
functioning. DL algorithms can process large amounts of data and learn from it to identify patterns
and make predictions. In resume screening, DL algorithms can analyze the content of resumes and
identify potential candidates based on job requirements. Deep learning algorithms, such as
Convolutional Neural Networks (CNNs) and Recurrent Neural Networks (RNNs), have been used
to extract relevant features from resumes and classify them according to job requirements. In
addition to extracting features from resumes, deep learning techniques have also been used to
reduce bias in the screening process. A study by Kirschner and Kestemont (2018) developed a deep
learning model to predict the gender of job applicants based on their resumes and found that the
model was effective in identifying and reducing gender bias in the screening process. However,
there are also challenges associated with the use of deep learning in resume screening. One
challenge is the need for large amounts of training data to ensure the accuracy and generalizability
of the model. Another challenge is the potential for the model to perpetuate biases if the training
data is biased.

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2.2 Challenges of AI-based Resume Screening
AI-based resume screening is not without its challenges. One of the main challenges is bias. AI-
based resume screening systems can be biased if they are trained on biased data, which can lead to
discriminatory outcomes. Data privacy is another challenge. Resumes contain personal information
that needs to be protected, and AI-based resume screening systems need to be designed with data
privacy in mind.

Several studies have examined the effectiveness of AI-based resume screening tools. One study by
Sreejith et al. (2020) evaluated the performance of three different machine learning algorithms for
resume screening and found that the decision tree algorithm outperformed the other two in terms of
accuracy and efficiency. Another study by Dong and Li (2020) developed an AI-based resume
screening system that uses natural language processing (NLP) and deep learning techniques to
automatically classify and rank resumes based on job-specific criteria. The system was found to
achieve high accuracy and efficiency in candidate screening.

In addition to improving the speed and accuracy of the screening process, AI-based resume
screening tools have the potential to reduce bias in candidate selection. For example, a study by
Hernandez et al. (2021) found that an AI-based resume screening tool reduced gender bias in
candidate selection compared to a human evaluator.

However, there are also concerns about the potential for AI-based resume screening to perpetuate
bias, particularly if the algorithms are trained on biased data. For example, a study by Dastin (2018)
found that an AI-based resume screening tool developed by Amazon was biased against women, as
the system was trained on resumes submitted over a 10-year period that were predominantly from
men.

Overall, the literature suggests that AI-based resume screening tools have the potential to improve
the efficiency and accuracy of the recruitment process. However, it is important to ensure that these
tools are developed and trained in a way that minimizes bias and maximizes fairness in candidate
selection.

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2.3 Benefits of AI-based Resume Screening and Automation
Despite the challenges, AI-based resume screening and automation offer several benefits. One of

the main benefits is improved accuracy. AI-based resume screening systems can analyze resumes

quickly and accurately, leading to better candidate matches. Another benefit is reduced time and

cost.

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 CHAPTER 3. RESEARCH METHODOLOGY
Research methodology is the systematic process of planning, executing, and analyzing a research
study in order to answer a specific research question or solve a problem. Literature was obtained
from various sources, including: google search; google scholar; researchgate.net; iopscience.iop.org;
various journal titles in business and management, system sciences, and tourism; emerald.com;
scirp.org; the Journal of Critical Reviews; and sciencedirect.com.

This chapter describes the philosophy of the research approach and detailed methods of research that
were used in this study.

3.1 Research Philosophy

This approach emphasizes the role of subjectivity and interpretation in the research process.
Researchers using this approach might use qualitative methods like interviews or case studies to
understand how job seekers and hiring managers approach the resume screening process, and use
that insight to develop AI tools that better reflect those perspectives.

The research philosophy in AI-based resume automation could vary depending on the specific
research question and context.

3.2 Research Design and Approach

The research design for this study will be a mixed-methods strategy. This approach combines both
quantitative and qualitative research methods to obtain a comprehensive understanding of the
research questions. The quantitative data will be collected through a google form survey, while the
qualitative data will be gathered through interviews.

3.3 Research Method

The study applies a mixed research design. Mixed design is a combined form of both qualitative and
quantitative design. For the purposes of the present paper as part of its research methodology it is
necessary to make use of an internet-based questionnaire for the best possible understanding of the
people perception of artificial intelligence recruitment tools and their use. The main objective is to
receive sufficient data on whether it is a general belief that those tools might be biased and on what
level they are going to be objective during any recruitment process. The questionnaire is internet

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based and self-completed, therefore completed by the respondents. The tool used to construct,
implement, and deliver the questionnaire is Google forms. The google form was distributed mainly
to the employees and employers of different companies.

Secondly, interviews were carried out via telephone with two of the job providers for qualitative
data.

Survey data will be the primary data source, and additional secondary data will be garnered from
existing research.

3.4 Data Collection Procedures

The data collection procedure will involve a survey and interviews with job providers and
employees. There is not a specific ideal respondent since the investigation is meant to collect data on
the general perception on whether or not to make use of such tools during recruitment. The survey
will be administered online using a survey tool. The estimated sample size in order to receive the
necessary amount of data required is 25 to 30 responses. The number of questions to be answered is
30. The main aim is to collect data on employees and employers, opinions and behaviors in regards
of the use of AI recruitment tools, and there is an intellectual comparison with the traditional in
person recruitment process for both reasons of accuracy and reasons of investigating the attitudes of
applicants against both recruitment methods. The data collected will provide a comprehensive
understanding of what the employers and employees feel about being assessed by AI and on what
level they believe this technology. General questions regarding personal information are asked in the
beginning and general questions regarding AI based recruitment automation are maintained in the
end of the form. Questions are formed and placed in order of magnitude and detail, in order to create
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a linear impression and be as accurate and as well as very pleasant to answer. The data collection
therefore is done on the appropriate level required by this investigation. Responders will not need to
have any specific or advanced knowledge to answer any of the questions. Instructions are clear and
simple, especially since the survey is investigative questions, researching perceptions. All questions
occur through the relevant literature reviewed for the purposes of this paper and concentrate around
the perception of the use of AI recruiting tools. Therefore, all the questions occurred are accurately
translated and delivered in Greek language. The answers delivered are expected to provide sufficient
data on the perception of responders in regards of the use of AI based resume automation in the
recruitment process. They are formed in a way so no participant will be in any way uncomfortable,
anxious or stressed about answering the questions and participating in the present study. The
relevant data requirements table can be found in the appendices section. (Appendix 1)

The survey will be designed to collect data on the following areas:

Perception of AI-based recruitment methods

Factors that influence the adoption of AI-based recruitment methods

The interview data will be gathered through semi-structured interviews with HR professionals and
job applicants. The interviews will be conducted face-to-face or remotely, depending on the
preference of the interviewee. The interview questions will focus on the following areas:

Experience with AI-based recruitment methods

Perception of AI-based recruitment methods

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CHAPTER 4. RESULTS AND ANALYSIS

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 CHAPTER 6. CONCLUSION
Using AI-based software in the recruitment and selection process can enhance the value of HRM job
functions in an organization. With the help of AI, HR teams can work more efficiently and
effectively as they spend less time on repetitive tasks, such as resume review, shortlisting, data
processing, etc. One of the most important phases of the hiring process is the screening of resumes.
To implement this technique of screening resumes, numerous strategies have been developed.
Technology has made it very simple for recruiters to use this resume screening method. With the aid
of new technologies, CV screening can be done quickly and effectively on even a large number of
applicants. But these approaches can't be broadly applied especially in developing countries because
of some issues. The developing countries still follow the traditional process.

References
1. Rajath, V., Fareed, R.T. and Kaganurmath, S., 2021. Resume classification and ranking
using KNN and cosine similarity. Int. J. Eng. Res. Technol, 10(08).
2. Mohamed, A., Bagawathinathan, W., Iqbal, U., Shamrath, S. and Jayakody, A., 2018,
December. Smart talents recruiter-resume ranking and recommendation system. In 2018
IEEE International Conference on Information and Automation for Sustainability
(ICIAfS) (pp. 1-5). IEEE.
3. Gopalakrishna, S.T. and Vijayaraghavan, V., 2019. Automated tool for Resume
classification using Sementic analysis. International Journal of Artificial Intelligence and
Applications (IJAIA), 10(1).
4. Roy, P.K., Chowdhary, S.S. and Bhatia, R., 2020. A machine learning approach for
automation of resume recommendation system. Procedia Computer Science, 167, pp.2318-
2327.
5. Deepak, G., Teja, V. and Santhanavijayan, A., 2020. A novel firefly driven scheme for
resume parsing and matching based on entity linking paradigm. Journal of Discrete
Mathematical Sciences and Cryptography, 23(1), pp.157-165.

Appendix A: Questionnaire

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Appendix B: Data collection sheet

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