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Changing Landscape of Recruitment Industry: A Study on the Impact of Artificial Intelligence on Eliminating Hiring Bias from Recruitment and Selection Process

Authors:
  • RV Institute of Management

Abstract

An emerging trend of implementing Artificial Intelligence (AI) technologies can be seen in such domains that were solely dominated by humans. Today, AI is utilized extensively in HR department to assist and accelerate recruitment and selection process (Martin, F.R., 2019. Employers Are Now Using Artificial Intelligence To Stop Bias In Hiring. Retrieved September 22, 2019, from analyticsindiamag. com: https://analyticsindiamag.com/employersare-using-ai-stop-bias-hiring/.). This paper attempts to present the impact of AI on recruitment and selection process, incorporation of AI in eliminating unconscious biases during hiring. The study addresses the rising questions such as how AI has changed the landscape of recruitment industry, role of AI in recruitment and selection process, whether AI can help in eliminating the unconscious bias during recruitment and selection process. In order to uncover the understanding and figure out the potential solutions that AI brings to the HR process, an extensive review of literature has been carried out. It is concluded by analyzing the past contributions that AI offers potential solution to recruitment managers in optimizing the recruitment and selection process and is able to negate human biases prevalent during hiring. The future waits for augmented intelligence technologies offering better results taking over repetitive administrative jobs completely.
RESEARCH ARTICLE
Copyright © 2020 American Scientific Publishers
All rights reserved
Printed in the United States of America
Journal of
Computational and Theoretical Nanoscience
Vol. 17, 1–4, 2020
Changing Landscape of Recruitment Industry: A Study
on the Impact of Artificial Intelligence on Eliminating
Hiring Bias from Recruitment and Selection Process
P. V. Raveendra, Y. M. S. Satish, and Padmalini Singh
RIT, Bengaluru, India
An emerging trend of implementing Artificial Intelligence (AI) technologies can be seen in such
domains that were solely dominated by humans. Today, AI is utilized extensively in HR depart-
ment to assist and accelerate recruitment and selection process (F.R.M., 2019. Employers Are
Now Using Artificial Intelligence To Stop Bias In Hiring. [online] Analytics India Magazine. Available
at: https://analyticsindiamag.com/employers-are-using-ai-stop-bias-hiring/). This paper attempts to
present the impact of AI on recruitment and selection process, incorporation of AI in eliminating
unconscious biases during hiring. The study addresses the rising questions such as how AI has
changed the landscape of recruitment industry, role of AI in recruitment and selection process,
whether AI can help in eliminating the unconscious bias during recruitment and selection process.
In order to uncover the understanding and figure out the potential solutions that AI brings to the HR
process, an extensive review of literature has been carried out. It is concluded by analyzing the past
contributions that AI offers potential solution to recruitment managers in optimizing the recruitment
and selection process and is able to negate human biases prevalent during hiring. The future waits
for augmented intelligence technologies offering better results taking over repetitive administrative
jobs completely.
Keywords: Artificial Intelligence, Recruitment and Selection, Recruitment Industry, Unconscious
Bias, Hiring Bias.
1. INTRODUCTION
To become one of the super powers, India is embrac-
ing Artificial Intelligence (AI) revolution at fast pace. In
the era of global technology at its peak, Artificial Intel-
ligence (AI) is composed to disrupt almost all industries.
Along with data processing and big data analytics, the
advancement of AI technologies also enables information
processing cognitive level such as learning, perceiving,
problem solving and decision making. AI have changed
the way people live and work today by complementing
and supplementing human intelligence [11]. The use of
Cognitive technologies like “Artificial Intelligence (AI),
Machine-To-Machine Learning, Robotic Process Automa-
tion, Natural Language Processing, Predictive Algorithms,
and Self-Learning”. Chatbots is becoming more common
in recruitment industry. Tools which matches candidates to
jobs through a—Fit Score based on candidate competen-
cies are also available for assisting recruitment and selec-
tion process [2]. Yesterday style to invest in data for data
analytics have leaped forward to put data into action by
Author to whom correspondence should be addressed.
leveraging AI technologies imitating human intelligence
for making decisions. Not too recently, AI technology have
enabled recruitment and selection process more efficiently
saving time and cost [14]. Organizations can reach desired
candidates with the help of AI that can automate the pro-
cess of screening the application forms and also providing
suggestions for making hiring decisions based on skillsets
and experience of the candidates. Apart from cognitive
processing support to recruitment industry, the most sig-
nificant support is extended for eliminating the human bias
that exists when employees are involved in hiring process.
AI is helpful in overcoming unconscious biases in recruit-
ment decision apart from accelerating the entire recruit-
ment process.
2. OBJECTIVES OF THE STUDY
To identify the hiring biases in recruitment and selection
process.
To analyze the role of AI in overcoming the unconscious
biases during hiring.
To study the recent trends in recruitment industry.
J. Comput. Theor. Nanosci. 2020, Vol. 17, No. xx 1546-1955/2020/17/001/004 doi:10.1166/jctn.2020.9086 1
RESEARCH ARTICLE
Changing Landscape of Recruitment Industry: A Study on the Impact of AI on Eliminating Raveendra et al.
3. METHODOLOGY
Independent academicians have attempted to synthesize
their views regarding role of AI in reducing unconscious
bias in hiring process and recent trends in AI by review-
ing the relevant literature, recent reports, articles as well
as research papers inline with similar topic. A system-
atic approach is followed to review available literature by
firstly examining the unconscious human biases influenc-
ing recruitment and selection and then latests reports and
articles about implementation of AI in recruitment process
were examined. Finally, reports, articles and news regard-
ing latest trends in AI that will supplement recruitment
industry completely in coming days were studied. After the
systematic study, the authors have concluded their views
regarding future of Artificial Intelligence.
4. REVIEW OF LITERATURE
AI technology revolution have changed the way recruit-
ment industry functions today. From sourcing to final
selection of best latent across the globe is empowered by
Artificial intelligence that saves time, cost and matches the
job recruitment and talent more efficiently. Human inter-
vention required for screening the job application to final
selection of the candidate will be history very soon [12].
AI have become a part of recruitment industry automating
the recruitment and selection process have moved ahead
to its ability to obviate unconscious human biases influ-
encing hiring process. Every human being is influenced
by unconscious biases that are “mental shortcuts” used
in information processing to make decisions. According
to the meta-analysis study published by “PNAS (Proceed-
ings of National Academy of Sciences of United States of
America)”, discrimination during hiring process remains
same since decades. The study has reported about the
discrimination among African-Americans and White job
applicants irrespective of their qualifications. Implementa-
tion of AI technologies have offered a solution to withdraw
any hindering human biases that limits the suitable candi-
date qualify the deserving job [13]. Some of the common
human unconscious biases are:
4.1. Halo Effect
The time available for the selection of an employee is lim-
ited particularly when more number of prospective candi-
date are there. There is a strong possibility of exhibiting
halo effect during recruitment process when HR Manager
may take the final decision to select a candidate based on
a single trait, carrying over the positive image of single
trait on other traits required to perform job task. Rather
than assessing the skills and abilities objectively to per-
form the job, the decision is solely based on a single favor-
able trait. Such type of decision making is also common in
performance appraisal where an employee is rated as high
performer or low performer on the basis of single trait [8].
4.2. Recency Bias
Recency Bias occurs when HR Manager base the final
decision for selecting the candidate remembering the most
recent event such as wonderful interview of the candidate
that may not guarantee his/her successful work perfor-
mance later post joining the organization [8]. It is similar
to the situation where some employees perform better at
the time of performance appraisal than throughout the
year [6]. Likewise during the selection process, interview-
ers expects the pre-conceived answers from interviewees.
The answers that match to the interviewer’s pre-conceived
answers are selected for the job. The answers that inter-
viewer’s expects acts as an anchors or reference points
which influence the decision making [13].
4.3. Similarity Attraction Bias
The tendency of recruiter’s to hire people who are similar
to them is similarity attraction bias. Study have proved
that people hire candidates who have similarities that are
unrelated to job performance such as hobbies, experience
in life etc.
4.4. Confirmation Bias
Often candidates are asked different questions from same
interviewer’s is due to confirmation bias. HR Managers
favor candidates who confirms their beliefs and dismiss
information that are disconfirming [16].
4.5. Contrast
This type of bias occurs when there is a huge difference
between the performance of two or more candidates. If
the first candidate perform extremely well in the inter-
view, the expected performance from the second one will
be high. There are chances that second candidate may be
rejected irrespective of good performance as compared to
previous candidate. Similarly an average candidate may be
selected even after their poor performance. Such error is
called as contrast. Such error is common in the perfor-
mance appraisal of employees too [8]. Human errors in
judgment, distortion in decision making, and irrationality
are due to cognitive bias of the decision maker (Murata
and Nakamura).
4.6. Discrimination Between Insider and Outsider
For few jobs both internal as well as external candidates
compete. Human tendency to select internal employee over
external candidate is due to discrimination [8]. opined that
such type of bias occurs due to mental blocks developed
as outsiders and insiders in the mind of selectors.
5. ROLE OF ARTIFICIAL INTELLIGENCE IN
ELIMINATING HIRING BIAS
The unconscious biases based on gender, race, language
can be eliminate with the use of AI in the shortlisting
2J. Comput. Theor. Nanosci. 17, 1–4, 2020
RESEARCH ARTICLE
Raveendra et al. Changing Landscape of Recruitment Industry: A Study on the Impact of AI on Eliminating
process. AI not only automate the resume evaluation pro-
cess at scale, analysing hundreds or resumes in short
period but also it can categories the candidates based on
the provided job specification automatically [2].
According to Ref. [3], AI is playing a fundamental role
in eliminating unconscious human biases in the following
ways:
Use of data points by AI technology: Recruitment and
selection process requires to pool large set of data and
analysing data at large scale. Human beings are prone to
commit errors while working on large sets of data. AI tech-
nology enables the recruitment and selection process to
match skills and abilities of candidates to job performance
and create profile of each candidate indicating which can-
didate is most suitable for the job. The ability of AI algo-
rithm that aid in selection of suitable candidate is free from
any human unconscious biases analysing massive data sets
objectively and testing and validating the results time and
again.
AI programming dismiss demographic data: AI soft-
ware is being programmed in a way to eliminate demo-
graphic information from job application to be processed
and analysed through AI to avoid any bias based on age,
gender, race etc. It ensures that the suggestions offered by
AI is free from any unconscious biases in hiring.
Value generation through an integrated analytical
platform: It is possible through AI. Having a robust inte-
grated analytical platform can provide crucial insights to
employers, recruiters, and even candidates themselves to
help them make the right hiring decisions.
Superior matching for candidates: Actively seeking
new opportunities is possible with help of AI driven
assessment. A proprietary engine can identify and priori-
tize job openings based on technical skills, cultural align-
ment, and the candidates’ core motivators. Thus offering
candidates an opportunity to understand themselves better.
Flow diagram how AI will eliminate biases:
Hiring biases Role of AI
Halo effect i.e.,
selection or rejection
based on one trait
AI uses an integrated
approach after considering
all the traits
Recency bias i.e.,
dependency on the
recent performance
or answers
AI will not consider recent
performance or answers
but also all the answers
and complete performance
of the candidate
Similarity attraction
bias and
confirmation biases.
AI will not have similarity
events and it considers all
the events equally. Thus
such bias can be avoided.
The same is true in case of
confirmation biases also.
Hiring biases Role of AI
Contrast AI always look for candidate
job fit rather than contrast
performance of the
candidates in the interview.
Discrimination
between insider and
outsider
AI software is being
programmed in a way to
eliminate all the
demographic information
including insider or
outsider. Thus such bias
can be avoided by AI
6. RECENT TRENDS IN
RECRUITMENT INDUSTRY
Artificial Intelligence is a specialised branch of Com-
puter Science which has the potential of creating machines
which can think and act like human beings or some-
times more efficiently than human beings such as robotics,
Machine learning and Machine Vision. With this potential,
it can bring in more disruption in sectors like manufactur-
ing, Information Technology, Banking and Recruitment. It
is often feared by the Skeptics that there would be huge job
losses across various sectors and one day machines may
become smarter than human beings and rule the world.
Will this happen in a recruitment industry?, let us see what
is trending in recruitment industry.
6.1. Artificial Intelligence Based Start-ups
The number of Artificial Intelligence based Start-ups in
the Recruitment Industry are growing and this trend is
expected to continue in future. The Artificial Intelligence
based technology platforms are capable of using big data
make quick and intelligent hiring decisions as the entire
process of recruitment is automated.
6.2. Dwindling Job Portals
The job portals like naukri.com, Monster.com are not able
meet the expectations of growing number of job seekers
in a highly networked and digital era, as a result of which
the importance of Job portals is on the decline.
6.3. Social Media
Social Media such as Facebook, LinkedIn and GitHub
have become almost indispensable part of our lives. The
widespread usage of social media has enhanced real
time interactions and networking. Crowdsourcing talent is
becoming order of the day.
6.4. Growing Number of Freelancers
As the country is moving towards gig economy, com-
panies are looking for Freelancers to perform specific
J. Comput. Theor. Nanosci. 17, 1–4, 2020 3
RESEARCH ARTICLE
Changing Landscape of Recruitment Industry: A Study on the Impact of AI on Eliminating Raveendra et al.
tasks most cost effectively. Full-time jobs are replaced
by part-time jobs. Some companies like Uber and Airbnb
are going that extra mile to make their workers micro
entrepreneurs.
6.5. Loss of Weightage for Experience
In a rapidly changing world, past experience, skillsets, and
qualification lose their relevance very fast. Ability to learn
and adapt to the changing conditions play major role in
Individual’s success.
6.6. Benefits of Artificial Intelligence to
Recruitment Industry
6.6.1. Improved Efficiency
An artificial intelligence based resume parsing and match-
ing technology improves the recruitment staff efficiency
in identifying the right profiles and matching with right
positions more accurately and in less time.
6.7. Fast Updating of Resumes
Artificial Intelligence helps in scanning job seekers pro-
files and posts on Social Networks to update their resumes
instantly.
But according to the recent World Bank report, 69% of
jobs are under risk in India due to AI while 77% of jobs
are under risk in China due to automation. Globally, the
same figure is around 30% in banking industry.
7. CONCLUSION
The recruitment industry is continually disrupted through
Artificial Intelligence. Automation in recruitment process
is releasing human efforts to devote their time and efforts
in understanding the desire and changing needs of the
employees for employee retention thus reducing recruit-
ment, selection and training and development cost. The
next level of AI revolution will further impact white collar
jobs as much as it is striking blue collar jobs today. Human
intelligence that is fundamental to recruitment and selec-
tion process will be partially taken over by AI technologies
due to its capability of ‘unconscious bias-free’ hiring pro-
cess carried out at massive scale. But moving forward, as
witnessed in other industries, ‘Intelligence created artifi-
cially’ cannot match the role of ‘emotional intelligence’
exhibited by HR Managers during hiring. Therefore, AI
technology will keep growing in future but only to assist
and support recruitment industry to a point where it will
be used as predictive analysis tool.
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Received: 30 September 2019. Accepted: 15 October 2019.
4J. Comput. Theor. Nanosci. 17, 1–4, 2020
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Recruitment is a fundamental aspect of Human Resource Management to drive organizational performance. Traditional recruitment processes, with manual stages, are time-consuming and inefficient. Artificial Intelligence (AI), which demonstrates its potential in various sectors such as healthcare, education and notable cases of ChatGPT, is currently reshaping recruitment by automating tasks to improve efficiency. However, in Thailand, where there is a growing demand for talents, the application of AI in recruitment remains relatively limited. This research focuses on human resources (HR) and recruitment professionals in Thailand, aiming to understand their perspectives on the integration of AI in recruitment. It extended the Unified Theory for Acceptance and Use of Technology (UTAUT) model, customized to suit the specific requirements of Thai recruitment practices. The study explores the factors influencing users' intention to adopt AI in recruitment. Survey questionnaire items were created based on prior literatures and refined with insights from HR and recruitment experts to ensure applicability in the context of recruitment in Thailand. A survey involving 364 HR and recruiting professionals in Bangkok metropolitan area supplied comprehensive responses. The research reveals that several factors, including Perceived Value, Perceived Autonomy, Effort Expectancy, and Facilitating Conditions, significantly impact the intention to adopt AI for recruitment. While Social Influence and Trust in AI Technology do not have a direct influence on intention, Social Influence directly affects Perceived Value. Trust in AI Technology positively influences Effort Expectancy. This study provides valuable benefits for HR and recruitment professionals, organizations and AI developers by offering insights into AI adoption and sustainability, enhancing recruitment processes and promoting the effective use of AI tools in this sector.
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In the continuous strive toward efficiency and competitive advantage, organizations are taking steps towards artificial intelligence (AI) as a comprehensive paradigm within the ‘Talent Acquisition’ domain. In the contemporary and dynamic marketplace, where skilled personnel are the most crucial assets for an organization, it is imperative to maintain a competitive edge in talent acquisition by employing AI-enabled recruitment and selection approaches and strategies. The healthcare industry has also begun to leverage AI for talent hiring and selection processes, namely talent acquisition. Regarding the healthcare sector, the implementation of AI has transformed the sub-systems such as administration, diagnosis, and patient care. Healthcare organizations have utilized AI from the initial scanning of resumes to the final hiring processes. This article aims to investigate the influence of AI-enabled factors of recruitment on hiring satisfaction, using structural equation modeling (SEM). The constructs, namely AI-enabled recruitment process, culture fit, and AI-enabled job fit have shown their efficacy in driving effective recruitment and selection systems. By understanding various regimes of AI in the talent acquisition process, this article can prove useful for the practitioners and professionals in healthcare sectors for utilizing AI in management functions while creating a scope for scholars and academicians for further research.
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In this chapter, the authors focus on different ways in which AI is incorporated in the process of recruitment. Along with the above stated objective, they also explore the forms of AI based recruitment, the benefits of AI based recruitment, and the challenges that might be encountered during the process with an emphasis on gender bias. In the findings, they aim to describe the gender bias in professional functions in businesses. On the other hand, they hope to gain insight into potential gender discrepancies between operational and leadership positions, as well as between departments. The findings of this chapter will benefit researchers, academics, and managers in analyzing gender-related practices and policies. Organizations can become more aware of their gendered practices, which affect the recruitment procedure and the varied roles and responsibilities assigned to men and women, by giving voice to the prejudices that generate gender biases. Along with this, they provide the implications, limitations, and future scope of the study.
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The purpose of this paper is to examine the use of artificial intelli-gence (AI) in recruitment & selection. Multiple case studies of AI tools used forrecruitment and selection have been used. Organizations can increase recruitingand selection efficiency and have access to a wider candidate pool by implement-ing AI in HRM. Subjective factors like nepotism and favouritism are less likely tobe used in the hiring and selection of personnel as a result of the implementationof AI in HRM. The implementation of AI in HRM may also have a favourableeffect on employee growth, retention, and effective use of time. AI is a developingfield of study. With real-world experience, most HRM apps have not accumulatedenough machine learning capabilities. Some of these are not supported by sci-ence. As a result, only a small part of the population is now impacted by AI inHRM. The research investigates how AI can broaden the pool of candidates. Italso improves our knowledge of how AI-based HRM tools might lessen biases incandidate selection, which is very crucial. It also explores a number of ways inwhich AI aids in the training, retention, and efficient use of workers
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Significance Many scholars have argued that discrimination in American society has decreased over time, while others point to persisting race and ethnic gaps and subtle forms of prejudice. The question has remained unsettled due to the indirect methods often used to assess levels of discrimination. We assess trends in hiring discrimination against African Americans and Latinos over time by analyzing callback rates from all available field experiments of hiring, capitalizing on the direct measure of discrimination and strong causal validity of these studies. We find no change in the levels of discrimination against African Americans since 1989, although we do find some indication of declining discrimination against Latinos. The results document a striking persistence of racial discrimination in US labor markets.
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On the basis of the analyses of past cases, we demonstrate how cognitive biases are ubiquitous in the process of incidents, crashes, collisions or disasters, as well as how they distort decision making and lead to undesirable outcomes. Five case studies were considered: a fire outbreak during cooking using an induction heating (IH) cooker, the KLM Flight 4805 crash, the Challenger space shuttle disaster, the collision between the Japanese Aegis-equipped destroyer “Atago” and a fishing boat and the Three Mile Island nuclear power plant meltdown. We demonstrate that heuristic-based biases, such as confirmation bias, groupthink and social loafing, overconfidence-based biases, such as the illusion of plan and control, and optimistic bias; framing biases majorly contributed to distorted decision making and eventually became the main cause of the incident, crash, collision or disaster. Therefore, we concluded that, in addition to human factors or ergonomics approaches, recognition and elimination of cognitive biases is indispensable for preventing incidents, crashes, collisions or disasters from occurring.
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The objective of the present investigation is to find out the existence of performance appraisal errors or biases in a public organization in Turkey. Magnitude of six types of appraisal errors was studied: the halo effect, the horn effect, the recency effect, the error of strictness, the leniency error and similarity effect. Af-ter the theoretical framework was provided, attitudes of the personnel towards to the six appraisal biases tried to be determined in the context of the research hy-potheses using sample data collected from 150 public personnel, who are the rater and the ratees in the system. According to the results of the study, personnel who work in the organization think that six performance appraisal errors or biases are present in the public performance appraisal system. Attitudes of the public persons concerning the appraisal errors are significantly varied according to their status, but their ages. Implications for the appraisal errors are discussed, limitations of the study are revealed, and future research directions offered.
Why bother with behavioural finance? Vanguard
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Byrne, A. and Utkus, P., 2013. Why bother with behavioural finance? Vanguard.
How AI Can Stop Unconscious Bias In Recruit-ing| Ideal
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Folick, O., 2019. How AI Can Stop Unconscious Bias In Recruit-ing| Ideal. [online] Ideal. Available at: https://ideal.com/unconsciousbias/ [Accessed 2 Oct. 2019].
Employers Are Now Using Artificial Intelligence To Stop Bias In Hiring
F.R.M., 2019. Employers Are Now Using Artificial Intelligence To Stop Bias In Hiring. [online] Analytics India Magazine. Available at: https://analyticsindiamag.com/employers-are-using-ai-stopbias-hiring/.
You are hired: How artificial intelligence is reshaping recruitment, and what it means for the future of jobs. The Economic Times
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Goyal, M., 2017. You are hired: How artificial intelligence is reshaping recruitment, and what it means for the future of jobs. The Economic Times, pp.6-8.
Intelligent hiring: Enhancing recruitment and elevating performance
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Izari, N. and Iyer, G., 2017. Intelligent hiring: Enhancing recruitment and elevating performance. Tata Consultancy Services.