Denis Grankin Head of Sales Department

AI for Recruiting: A Comprehensive Overview

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AI for recruiting

What makes Artificial Intelligence in recruiting stand out? It is said to skyrocket the efficiency of all HR operations. With AI recruiting software, you can make routine tasks like candidate sourcing, screening, and hiring top talents easier and more automated. According to statistics, about 86% of recruitment professionals who have implemented automated HR solutions have accelerated their hiring processes.

As the world of work continues to evolve at a rapid pace, companies are turning to AI hiring to stay ahead of the curve. AI is transforming the way companies find and hire talents, allowing them to make more informed decisions and optimize the recruitment process.

AI recruiting looks set to be the next big thing. Want to keep up with the innovations that can recharge your HR kitchen? Then make sure you know all the ins and outs of AI in recruiting and understand how AI for recruiters can be used to benefit the enterprise as a whole.

Using AI In Hiring: An Overview

According to some studies, about half of the companies worldwide are already adopting some form of AI in their HR operations. At the same time, 66% of CEOs believe that artificial intelligence can yield incredible benefits in recruitment, while more than 80% of HR professionals claim that AI technologies in HR increase employee engagement.

Let's take a look at some statistics to get a sense of the current situation.

In 2022, the AI recruiting market was estimated to be worth USD 540.4 million:

Artificial Intelligence for recruiting market

The AI recruitment industry is projected to grow from USD 590.5 million in 2023 to USD 942.3 million by 2030. According to Facts and Factors, the AI recruiting market is expected to reach USD 890 million by 2028.

According to other sources, the AI market share in the recruitment industry is expected to grow to USD 222.94 million between 2021 and 2026.

What is AI for recruiting?

Let's break down what artificial intelligence recruiting is.

AI recruiting is the use of artificial intelligence technologies such as natural language processing (NLP), deep learning algorithms, cognitive computing, or predictive analytics to optimize the recruiting process. From sourcing candidates to scheduling interviews and assessing candidate fit, AI recruiting can help companies save time, reduce costs, and improve the quality of hires.

The idea is to move to intelligent recruitment, i.e. to use AI tools to make the hiring process simplified, automated, and capable of hiring the best candidates.

How is AI leveraged in recruitment?

Artificial Intelligence performs the following key functions:

  • Personalization. This includes personalized content throughout the recruiting lifecycle, personalized job recommendations, and dynamic content based on a candidate's experience, search history, location, interests, and similar jobs. As a result, recruiters can more easily find experts with the right skills or engage passive candidates.
  • Intelligent recruitment. With a semantic search on a career site, candidates and recruiters receive search results that are relevant to their needs. Artificial Intelligence provides sentiment analysis, natural language processing, and text classification to gain insight into a person's intentions and then generate human-like responses.
  • Communication via chatbots. AI talent acquisition involves providing feedback to candidates and interacting with them. Through AI resume parsing, candidate sourcing and screening, as well as predictive analytics, AI offers personalized candidate engagement. As a result, talented job seekers are more likely to be noticed and hired.
  • Interview chatbot. You can use a chatbot or a smart employee management system (EMS) to schedule and run interviews. This AI feature for recruiting is based on keeping calendars, workloads, and available HR team members in sync.
  • AI-powered EMS and CRM for candidate management. These systems help not only to recruit the right talent, but also to increase their productivity, manage communication, and respond quickly to their requests.

Why Go for Artificial Intelligence Recruiting?

So, let's be clear: why is Artificial Intelligence so valuable for recruitment?

First, AI can automate many of the boring and mundane tasks in recruiting, such as resume parsing and candidate sourcing. This frees up recruiters to focus on more important things, such as building relationships with candidates.

Another huge benefit of AI in recruiting is that it can help reduce unconscious bias. By removing identifying details from resumes and evaluating candidates solely on objective criteria, AI can ensure that all candidates are treated equally and without bias.

By analyzing data from previous successful hires and developing predictive models for future ones, AI can also help recruiters make better hiring decisions.

But that's not all - AI can also improve the candidate experience by providing personalized and timely communication throughout the recruitment process. This can lead to a positive company impression and increase the chances that candidates will accept a job offer.

Finally, AI can also be applied to streamline the onboarding process by providing new hires with personalized training and resources. This can speed up the onboarding process and increase staff retention.

Artificial Intelligence (AI) and Machine Learning (ML) in the hiring process

When it comes to recruiting, Artificial Intelligence (AI) and Machine Learning (ML) are often used interchangeably. But you should know that they both refer to different technologies.

AI is the ability of a machine or computer program to perform tasks that normally require human intelligence, such as natural language processing, entity recognition, and decision-making. Machine Learning is a subset of AI that involves teaching a machine or computer program to learn from data without any explicit programming.

In recruiting and hiring, AI and ML can be utilized to automate various processes and increase efficiency.


  • analyzing vacancies and parsing resumes;
  • conducting preliminary interviews;
  • assessing the relevance of candidates based on social media profiles or other publicly available information.

Machine Learning:

  • analyzing data on successful hires to identify patterns;
  • creating predictive models for future hiring decisions.

AI hiring tools

While both Artificial Intelligence and Machine Learning can be of great value in hiring, they differ in their advantages and limitations. Artificial Intelligence is typically better suited for tasks that require sophisticated decision-making or analysis of unstructured data, such as natural language processing or entity recognition. Machine Learning, on the other hand, is better suited for tasks that involve analyzing large amounts of structured data, such as predicting which candidates are most likely to succeed in a particular job.

At the end of the day, the choice between AI and ML will depend on the specific needs and goals of your recruiting and hiring process. A combination of both technologies may prove to be the most effective option.

Unlocking the Power of NLP and Deep Learning in Artificial Intelligence Recruiting

To make more informed hiring decisions, reduce recruiting costs, and improve the overall quality of hires, companies are increasingly turning to AI-related technologies such as Natural Language Processing (NLP) and Deep Learning algorithms.

NLP is a type of cognitive computing that uses machine learning algorithms to analyze and understand human language. This technology is a breakthrough in the way employers analyze job applications and other content to find candidates. Machines can grasp the meaning of written or spoken words and provide human-like responses.

Deep Learning algorithms, on the other hand, are a subset of Machine Learning that employs multi-layered neural networks to analyze complex data sets. They can learn from huge amounts of data and make predictions based on patterns and trends that may not be obvious to humans.

When combined, NLP and Deep Learning algorithms can identify the most qualified applicants based on factors such as education, experience, and skills.

AI for Recruiters in 2023: How to Embrace Technology

Adopting AI in recruiting in 2023 requires a strategic approach to ensure it meets your organization's unique needs and challenges. Below are a few steps to help you embrace AI recruiting:

  • Define your recruiting needs. This may include analyzing your current recruiting process, identifying areas for improvement, and setting clear goals for implementing Artificial Intelligence.
  • Pick the right AI recruiting software. There are many off-the-shelf AI recruiting systems available. They come with standard features that can be expanded as needed. Another option is to turn to custom recruitment software development to create your own AI-powered recruiting system. To do this, you can turn to IT outsourcing services, choose a staff augmentation cooperation model, use an agile project management approach, and end up with your own AI-powered recruiting and hiring platform.
  • Get your data ready for processing. Informed decisions are the result of clean data, as an AI recruiting system relies on data to operate. The data must be clean, accurate, and usable. This can be achieved by cleaning up existing data, integrating data from other sources, and converting it into a format suitable for analysis by AI software.
  • Train your AI recruiting program. To get data-driven recruiting where AI is of use to recruiters, it's critical to train the system. The system should be filled with clear connections between your data and examples of successful hires. This task is best handled by subject matter engineers with experience in building web-based systems and mobile applications. The best option would be to hire software development engineers who have experience in creating an employee management system or application.
  • Start by creating an MVP for your AI recruiting software solution. Using AI for hiring means regularly testing and refining your system and processes to get the results you want. You can start with an MVP to customize the system as needed.
  • Test and validate your automated HR solutions. If you continually review key metrics, update your software, and make necessary changes, AI for HR will deliver the results you need. This is the only way AI recruiting can benefit your HR department and your business as a whole.

AI for recruiting development

Advantages of Utilizing Artificial Intelligence in Recruiting

AI recruiting benefits all stakeholders - candidates, recruiters, and business owners. When it comes to AI in recruiting, the benefits for candidates can be as follows.

Enhanced candidate experience

With chatbot interviews, candidates can receive real-time feedback, which can help create a more positive candidate experience. This is key, especially if you know that a bad recruiting or onboarding experience directly affects the decision of top candidates to join the company or not. About 49% of applicants reject a job offer because of a bad candidate experience. Using natural language processing (NLP), deep learning algorithms, and cognitive computing prevents this scenario. Instead, your recruiters will be able to better serve candidates.

Reduced bias in the recruiting process

Using AI in hiring is a way to identify potential biases in the recruitment process. AI tends to evaluate candidates based on objective criteria rather than age, gender, or ethnicity. This progressive approach can ensure that all candidates are treated fairly.

The best candidates and the best jobs are matched

AI helps match candidates to roles where they are more likely to succeed. How does it work? Artificial Intelligence analyzes data from past successful hires and develops predictive models for future hiring decisions. This leads to a better match between candidates and employers.

How can companies take advantage of AI in recruiting?

More informed decisions

An AI recruiting system integrates data from a variety of sources, such as social media, job boards, applicant tracking systems (ATS), and enterprise resource planning (ERP), and can identify candidates that may have been overlooked by traditional recruiting methods. AI helps you identify the best talent faster and more efficiently, reducing the risk of mis-hiring.

Repetitive tasks are automated

Candidate sourcing, resume screening, and interview scheduling can be time-consuming. With AI recruitment software, all of these tasks are automated, saving HR professionals time and freeing them up for more strategic activities.

Passive candidates are discovered

Data-driven recruiting can help identify passive candidates who often turn out to be the best employees. It may be surprising, yet it's true: about 70% of talent is passively looking for a new job. AI will provide access to the pool of passive talent and will be a prerequisite for your AI talent acquisition team to put together the right team for your company.

Winning the competition

This is another potential benefit of using AI in recruiting for businesses. By automating tasks and increasing the efficiency of the recruiting process, companies can find and hire the best talent faster and more efficiently compared to their competitors.

benefits of AI in recruiting

Artificial Intelligence Recruiting in 2023: Ways to Evolve

Here are a few areas of data-driven recruitment development in 2023.

More use of predictive analytics

In 2023, AI recruiting is likely to rely even more on predictive analytics. In recruiting, predictive analytics can be used to determine which candidates are most likely to succeed in a particular position based on factors such as their experience, skills, and personality traits.

Candidate experience takes priority

In 2023, AI recruiting is going to pay more attention to candidate experience. With data, it will be possible to track and analyze a candidate's journey from first touch to final offer and determine where the process can be improved. This will lead to a more positive candidate experience, which in turn will help companies attract and retain the best talent.

Use of Natural Language Processing

In 2023, NLP is expected to be used more widely in AI recruiting to analyze resumes, cover letters, and other candidate data. NLP can be applied to identify key skills and experience, as well as to perform sentiment analysis to improve communication with the candidate.

Wider adoption of automation

In 2023, automation is set to remain a key factor in AI-driven recruitment. Automation can be leveraged to optimize tasks such as resume vetting, interview scheduling, and candidate outreach.

More emphasis on diversity and inclusion

In 2023, it is planned to pay even more attention to diversity and inclusion. The data can be used to identify bias in the hiring process, for example, in job descriptions or candidate screening.

Features of AI for Recruiting

Challenges of AI Recruiting in 2023

Sure, like any other technology, AI recruiting is not without its problems.

Ensuring a fair and impartial hiring process

Adopting a diversity, equality, and inclusion (DE&I) strategy is key to business success. Some of the companies McKinsey studied have achieved their diversity goals. But there is still a long way to go.

To do this, you need to:

  • make sure that the data used for AI training is objective;
  • use unbiased criteria when evaluating candidates;
  • control the AI system to make sure it does not manifest bias;
  • include human supervision in the data-driven recruitment process.

Finding a balance between automation and human factors

While AI recruiting can automate many tasks, it is important to ensure a balance between automation and human factors. Human interaction should be provided throughout the recruitment process, for example, during interviews and candidate onboarding. This will help deliver a positive candidate experience and increase the likelihood of a successful hire.

Despite these challenges, the use of AI in recruiting is increasing. According to statistics, 24% of companies are already using Artificial Intelligence in their data-driven recruitment processes, and 56% of recruitment professionals consider AI to be particularly helpful in selecting candidates. AI recruiting is expected to rise in the coming years.

Where to Go Next: Get a Ready-made AI Recruiting Tool or Develop Your Own AI Recruiting Software?

Here are some key insights to help you decide between an off-the-shelf AI recruiting tool and developing your own AI recruiting platform.

  • Cost: Developing your own AI recruitment platform can cost money and time. Purchasing an off-the-shelf data-driven recruitment tool may be a more cost-effective option if you're looking to save money.
  • Customization: Developing your own AI software may be the way to go if you have specific recruiting needs or requirements that cannot be met with an off-the-shelf tool. As a result, the platform can be customized to meet your specific needs, goals, and daily recruiting challenges.
  • Expertise: Building your own AI recruiting platform requires expertise in areas such as natural language processing (NLP), deep learning algorithms, cognitive computing, or predictive analytics. You should do your best to hire engineers with such expertise. However, the result you can count on is a powerful web-based AI recruiting system equipped with features such as sentiment analysis, entity recognition, text classification, chatbot interviews, and resume parsing if necessary.
  • Time to market: AI and machine learning recruitment can be a time-consuming process, as it requires a significant investment of time in planning, development, and testing. If you don't have time to wait, it makes sense to look for a ready-made AI recruiting platform.
  • Support: What is AI for recruiting? It means you get ongoing technical support throughout the entire process - from sourcing candidates to onboarding new hires. An IT outsourcing team building AI recruiting software will ensure the smooth operation of your AI-powered EMS, ATS, or CRM so that you can focus on growing your business without being distracted by the technical side of recruiting.

Bottom line

AI recruiting can be a powerful tool for companies looking to optimize their recruitment process and make more informed hiring decisions. By creating the right AI recruiting tool, providing training and support to recruiters and hiring managers, and removing potential biases, companies are poised to successfully implement AI recruiting in 2023.

Interested in how to integrate AI into your hiring process? We will take you through this journey of building and implementing an AI recruiting system.

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