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The Rise of Using Artificial Intelligence in Talent Acquisition

In today's talent acquisition landscape, HR professionals and hiring managers using AI find themselves at a fascinating crossroads. On one side stands a growing array of technology and AI tools promising to streamline and optimize hiring decisions, which currently comes at the potential cost of unclear legal risk and unpredictable errors. On the other hand stands the irreplaceable value of human insights and behavioral science, often at an efficiency cost for hiring managers. As business psychologists partnering with organizations on talent strategies, we've seen firsthand how these forces interact. The key question isn't about choosing sides but about knowing when each approach serves your organization and job candidates best.

A Smarter Balance

Today's HR professionals utilize a blend of methods to identify and streamline talent selection. Common tools include resume screening, reference checks, and interviews. Beyond these basics, organizations are increasingly adopting more sophisticated human and AI-powered approaches:

Modern Assessment Tools

Assessment tools have become increasingly accessible, ranging from cognitive skill evaluations that measure job-relevant abilities such as decision-making to validated personality instruments that explore work styles and behavioral tendencies. When deployed correctly by trained users and subject matter experts, they can predict fit to role and success in role with notable accuracy. Depending on the role, HR teams might also incorporate structured behavioral interviews, job simulations, technical evaluations, writing samples, or portfolio reviews. 

Expert Partnerships

For more specialized or high-stakes leadership roles, many organizations partner with consultants who bring expertise in industrial-organizational psychology and behavioral science. These partnerships enhance the selection process through advanced assessment techniques, validated tools, and an objective interpretation of results. This is particularly valuable when internal teams lack specialized training or may not have resources for an in-house expert.

Expanded Technology

The evolution of technology has further expanded hiring toolkits, with applicant tracking systems, video interviewing platforms, artificial intelligence-powered chatbots like ChatGPT, and automated screening tools becoming standard in many hiring processes. Yet, what risks does the use of AI expose the organization to, and do these tools actually do what they say? These critical questions lead us to consider how we should evaluate hiring technologies.

Evaluating AI Recruiting Technology 

Not all hiring technologies are created equal, nor do they automatically lead to better outcomes. When decisions affect both job seekers and business outcomes, the latest innovation isn't always the best. Careful evaluation using these essential criteria will help hiring managers distinguish truly valuable technologies from those offering more promise than performance:

  • Purpose alignment: The most basic question is often overlooked—is this tool designed for what you want to use it for? Technologies repurposed from other contexts may not transfer well to hiring scenarios and may have hidden downsides.

  • Validity: Does the assessment measure what it claims to measure, and more importantly, does it actually predict on-the-job performance? Look for tools backed by rigorous validation studies or data-driven reporting that is specific to your needs, such as hiring or development.

  • Reliability: Consistency matters. A reliable tool should produce similar results when used repeatedly under the same conditions. Unreliable assessments introduce unnecessary variability into your decision-making.

  • Legal defensibility: In today's world, hiring practices must withstand legal scrutiny. Choose tools that align with legal best practices and don't expose your organization to discrimination claims or other legal vulnerabilities. AI in hiring is a rapidly evolving field, so active effort must be made to stay up to date.

  • Practicality: Even a highly effective tool becomes useless if it's too difficult to implement. Consider the resource requirements, time commitment, cost, and complexity when evaluating new technology to determine whether it will optimize your process.

  • Candidate experience: Finally, remember that each interaction shapes how potential employees view your organization. Technology that creates frustrating, confusing, or impersonal experiences for job seekers may deter top talent.

Where Technology Adds Value to Talent Acquisition

There are certain aspects of the hiring process where technology, including validated assessments, demonstrably enhances outcomes:

  • Making hiring processes more efficient: Technology streamlines workflows and automates repetitive tasks for human resources, allowing organizations to consider broader talent pools while focusing human attention where judgment matters most. This efficiency creates capacity for deeper evaluation of qualified candidates.

  • Streamlining candidate experiences: Well-designed technology can make application processes more accessible, allowing job candidates to showcase their qualifications without unnecessary friction. From mobile-friendly applications to virtual interviews, these tools expand reach and remove logistical barriers. Similarly, candidates are able to take well-validated, online cognitive and personality assessment tools no matter where they are located in the world.

  • Calibrating team evaluations: Digital platforms can aggregate feedback from multiple interviewers, standardize rating scales, and highlight discrepancies in assessments. This helps minimize human biases and creates more balanced evaluations across different team members.

The Irreplaceable Human Element

While technology continues to transform the hiring landscape, there remain critical dimensions of candidate evaluation that algorithms and digital tools cannot yet replicate. These are the domains where human expertise doesn't just add value, it is essential. The areas where experienced professionals, such as knowledgeable HR leaders and business psychologists, bring irreplaceable insight include:

  • Considering culture and team dynamics: Understanding how a job applicant will interact within a specific team environment requires nuanced evaluation. Experienced professionals and business psychologists detect subtle social cues and assess cultural fit and cultural add through skilled questioning in ways algorithms cannot.

  • Interpreting communication complexity: The complexities of human communication can be misunderstood when using AI technology. Elements like humor, sarcasm, empathy, and emotional intelligence are best evaluated through human interaction. Business psychologists are trained to facilitate an interview process that enables them to understand the candidate’s behaviors and emotions. 

  • Contextualizing experiences and skills: Human evaluators excel at recognizing when non-traditional backgrounds offer valuable perspective, when employment gaps have reasonable explanations, or when specific experiences transfer well to new contexts. Business psychologists can enhance existing best practices, such as structured interviews, competency mapping, and assessing future potential, allowing non-traditional candidates to shine when they should.

Finding the Perfect Balance During the Hiring Process

The most effective hiring strategies can integrate both technological efficiency and human insight. Consider these principles when developing your approach:

  1. Start with clear objectives: Define what success looks like before selecting tools, including AI. Different roles and organizations have different needs, and your process should reflect these specifics.

  2. Layer multiple methods: Consider using technology to streamline the initial screening, and consider using standardized, purpose appropriate and validated assessments if the situation and resources allow. Then follow with human evaluation for required job-related competencies, as well as cultural fit and culture add.

  3. Continuously evaluate: Regularly assess your tools and processes, tracking outcomes to identify what works and what needs refinement. If a tool or AI system sounds too good to be true, it probably is. 

  4. Build diverse evaluation teams: Human judgment improves when multiple perspectives are included. Ensure your human evaluators represent diverse backgrounds and viewpoints.

  5. Provide proper training: Both technological tools and human judgment improve with proper training. Invest in helping your team understand how to interpret assessment results and recognize their own biases.

  6. Partner with experts: Partner with technology, assessment, and legal experts to keep practices cutting-edge while minimizing legal risk. Trying to evaluate every option yourself is likely unrealistic.

Our goal as consultants is to provide our clients with the tools and information to make more effective, reliable, and streamlined hiring decisions. Both technology and human judgment play critical roles in achieving this. By understanding how to evaluate hiring tools, when to leverage technology, and where human experience remains essential, you can develop a balanced approach that serves both your organization and your candidates.

Ready to optimize your hiring strategy? Contact us today to schedule a consultation and discover how we can add value in your hiring process and help transform your talent acquisition results.

Meet the Author
Peter Hegel

Peter Hegel, PhD

Senior Consulting Psychologist

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Jessica Rusnack Headshot

Jessica Rusnack, PhD

Principal Consulting Psychologist

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