Is artificial intelligence (AI) a friend or foe of better and more inclusive recruitment? It’s an increasingly important question. One recent study published by the UK Government found that 48% of recruitment agencies in the country are now using AI for tasks such as candidate sourcing and screening. That has prompted both anxiety and optimism.
One worry is that AI tools will simply reproduce human prejudices at scale. “AI systems can perpetuate existing biases, cause digital exclusion and create discriminatory job advertising and targeting,” warned Christopher Beveridge, head of privacy and data protection at BDO, an accounting and consulting firm, in a recent blog.
On the other hand, smart deployment of AI could broaden the pool of labour, identifying and promoting candidates often overlooked by traditional recruitment processes – not least because technology makes it easier to work with a larger number of job applicants.
“AI is well-suited to managing large amounts of information and can be applied throughout the recruitment process,” argues Emma de Sousa, managing director of Access Recruitment. “It can be particularly helpful for neurodiverse employees, including those with dyslexia, dyscalculia and ADHD. By giving everyone the tools they need to work in a way that suits them, organisations benefit from more inclusive teams, with a broader range of skills and perspectives.”
An increasing number of fast-paced start-up businesses make similar points as they launch new AI solutions aimed at human resources (HR) professionals. In the US, HireVue reached almost $90 million of revenues last year. In Europe, companies such as Maki, which raised $28.6 million of funding earlier this year, and Test Gorilla have also been growing rapidly.
Another example is Skillvue, an Italian business that is today announcing it has raised $6.3 million of seed funding. Its platform enables HR managers to assess large numbers of candidates according to the particular qualities and competencies their businesses are looking for – very often soft skills such as ability to learn and resilience rather than specific technical knowledge.
When I first interviewed Nicolò Mazzocchi, CEO and co-founder of Skillvue, for Forbes in September 2023, he predicted AI adoption in recruitment would accelerate rapidly. Some 18 months later, Mazzocchi says: “Large enterprises in particular are really struggling with recruitment and retention, but AI can transform how they identify, hire and grow talent.”
Mazzochi says big organisations in sectors such as retail, financial services and the public realm face particular challenges. They have large workforces, often dispersed across far-flung stores, branches and offices, and rely on local managers to handle much of their hiring, even though they may have no recruitment experience or training. “An AI platform enables these organisations to standardise the skills assessment process,” Mazocchi argues.
As for retention, Skillvue argues that AI can also be used to drive up skills and support career development for the current workforce too. Many of its 90 or so customers use its tools to enable employees to assess their own skills and capabilities. The analysis can then be used to direct training and learning opportunities – and to identify internal candidates for roles who might have been otherwise overlooked.
Skillvue’s funding round was led by 360 Capital, with participation from existing investors Italian Founders Fund (IFF) and 14Peaks Capital, alongside co-investment from Orbita Verticale. It takes the total amount of money raised by the company to $9.5 million since its launch in 2021, underlining investors’ interest in the theme of AI in recruitment.
Indeed, Lorenzo Franzi, a partner at IFF, and Edoardo Ermotti, founder and general partner at 14Peaks Capital, are certain that the use of AI in recruitment and broader AI is only going to increase. They point to “the intersection of two central developments for those who study and build the future of work: the application of AI to HR processes and the transition to skills-based organisational models.”
Franzi and Ermotti add: “We are convinced these are not just trends but structural transformations that will redefine the way companies hire, develop and value human capital for decades to come.”
It’s a widely held view. Fintech giant Revolut, for example, has been using an in-house developed AI tool for several years to support people management for its 10,000 employees. Last month, it announced it would start selling the solution to external customers.
Still, Andrei Oprisor, head of people product at Revolut, stresses the importance of keeping humans in the loop. “Real talent development happens face-to-face by managers inspiring their direct reports,” he warns. “AI is increasingly capable of handling the data and admin side, freeing up more time for managers to focus on guiding talent towards the next step in their careers, as well as figuring out new ways to build cultures and drive positive change for those A-players.”
Read the full article here
