In recent years, the use of artificial intelligence (AI) in the recruitment process has gained significant momentum.

Recently an article in the Financial Times (FT) caught our attention, stating a trend in AI-generated CVs being used by applicants to increase their chances to be selected for interviews and jobs.

About half of all job seekers make use of AI tools when applying for jobs. Most importantly, applicants turn to generative AI tools like ChatGPT, for assistance in CV and cover letter writing.

Experts particularly highlighted the early career applicants, who have more affinity for this technology as the group making the most use of generative AI to write their applications.

According to a large number of HR and line managers, numerous major employers enforce a strict zero-tolerance policy on the use of AI. All the Big 4 accounting firms have emphasized on this policy for the use of AI for all their graduate applicants.

What does this increasing use of AI mean for applicants and employers in the long run?

Let us take a closer look at the opportunities and threats for talents.

Opportunities

1. Customized Applications: AI can analyze job descriptions and modify a candidate’s CV to emphasize the skills and experiences that are most relevant to the position. This tailored approach not only enhances the applicant’s chances of securing an interview but also helps them stand out by aligning their qualifications more closely with what the employer is seeking.

2. Streamlined Processes: Applying for jobs can be a lengthy and complex process, especially when tailoring applications to multiple openings. AI-generated CVs simplify this task, enabling job seekers to apply for more positions with less effort, which can improve their chances of finding a job.

3. Reducing Bias: By focusing solely on the merits of skills and experiences, AI has the potential to generate CVs that are free from the biases typically introduced by human evaluators. This could lead to a fairer hiring process, giving all candidates a more equal opportunity to be considered.

Threats

1. Loss of Individuality: The efficiency of AI in generating CVs comes with the downside of potential uniformity. If every CV starts to look the same, it becomes difficult for candidates to highlight their unique traits and personal strengths in a pool of similarly formatted resumes.

2. Gaming the System: As job seekers become more familiar with how AI algorithms work, there’s a risk that they might tailor their CVs excessively to meet these criteria, focusing on including specific keywords rather than accurately describing their actual qualifications and experiences.

3. Data Security: Employing AI tools requires candidates to input their personal details into digital platforms, which may not always be secure. The risk of personal data being compromised is a significant drawback that needs careful consideration.

Candidates applying for jobs should keep the risks in mind, like potential loss of personal touch in applications, the manipulation of CV content and privacy issues.

Implications for Employers

Employers enjoy the streamlined nature of AI-generated CVs, which can facilitate faster and more efficient candidate screening. However, this reliance on technology may also lead to overlooking candidates with non-conventional profiles who might be a perfect fit for the company culturally or in terms of unique creativity. It’s crucial for employers to balance technological assessments with human judgment.

Future outlook

Exploring the future impact of AI in recruitment involves envisioning advanced scenarios where AI extends beyond current applications, profoundly transforming hiring practices.

AI could evolve into a continuous career development partner, dynamically updating CVs as individuals acquire new skills and experiences. It would also proactively recommend courses and job opportunities based on market trends, guiding career trajectories with real-time optimizations.

The exponential development of the technology could also lead to automated search and skills matching steps, run completely by AI programs in the not-so- distant future. Job boards will be scanned instantly and matched with CVs available on various platforms.

Another scenario could lead to virtual AI recruiters, which will conduct first round interviews as an avatar, followed by an analysis of the candidate’s verbal and non- verbal skills and assess the fit for the company culture.

An emerging role for AI could be monitoring other recruitment-related AI systems to ensure they operate without biases and adhere to ethical standards, maintaining accountability and regulatory compliance.

In a highly agile future labor market, AI could enable dynamic workforce management. For instance, AI systems might manage ‘gig’ economy workers but on a larger scale, dynamically allocating human resources where they are needed most, perhaps even in real-time. Workers might no longer have fixed roles but rather fluid positions that AI adjusts based on company goals, worker performance, and market demands.

These scenarios, while speculative, highlight potential directions in which AI could influence recruitment and workforce management. They illustrate a future where AI not only automates tasks but also becomes a strategic partner in workforce management, reshaping career development and organizational human capital strategies. Each scenario highlights potential opportunities and challenges, signaling a future marked by sophisticated AI applications in employment.

We at FlexAgility follow the developments with excitement and believe that the generative AI will transform our approach to candidate selection and CV assessment in the mid- to long-term future. Recruiters, job seekers and employers must navigate these waters carefully, leveraging the strengths of AI while being aware of its limitations.