AI Is Quietly Reshaping How Companies Screen Resumes — Nearly Half Of Hiring Managers Now Use It

The recruitment landscape is undergoing a significant shift as Artificial Intelligence (AI) is increasingly being utilized to screen resumes and rank applications.

What Happened: The use of AI-powered tools to screen resumes before they reach recruiters is on the rise, reported CNN. This is largely due to the high volume of applications that some job postings attract.48% of hiring managers use AI to screen resumes and applications, according to data from Resume Genius.

The AI recruitment sector is projected to grow at a compound annual rate of 6.1% from 2023 to 2030, as per the Society for Human Resources Management.

AI tools can understand the content of a resume, going beyond just scanning for keywords. This allows for a more holistic view of the candidate, inferring skills rather than relying on specific words. This approach benefits both recruiters and candidates, as it allows applications to be seen in their entirety by the algorithm.

AI is also being used to simplify the hiring process. For instance, LinkedIn, owned by Microsoft Corporation, introduced an AI agent for handling routine HR tasks such as screening applications. The agent, called Hiring Assistant, provides a list of top contenders sourced from applicants or the network’s profiles. LinkedIn is also working on a tool that allows job seekers to describe their desired role rather than searching for a specific job title.

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However, AI is not without its flaws. It is still prone to bias and can sometimes output false information. Experts stress that while AI can streamline the hiring process, the final decision should always be made by a human.

Why It Matters: The rise of AI in recruitment aligns with the World Economic Forum’s prediction that AI and AI agents will significantly change the workforce and job market. The report suggested that 41% of employers expect to reduce their workforce size in roles where AI can replicate human work.

Moreover, LinkedIn’s introduction of AI-powered tools to help job seekers gauge their chances of receiving responses from potential employers is a testament to the growing influence of AI in recruitment.

However, it’s important to note that AI skills are not the only factor in hiring decisions. As Accenture’s CEO, Julie Sweet highlighted, other factors can also play a crucial role in the hiring process.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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