Revolutionising recruitment: the impact of GenAI

April 2025  |  FEATURE | LABOUR & EMPLOYMENT

Financier Worldwide Magazine

April 2025 Issue

Recruitment strategies have evolved significantly over the years, shifting from traditional methods of selection (manually matching applicants to the job and person specification) to modern, technology-driven approaches that utilise artificial intelligence (AI).

Of these tech techniques, the one having a particular impact on the recruitment landscape, for both recruiters and applicants, is that of generative AI (GenAI).

According to a 2023 Gartner Research Board study, 81 percent of human resources leaders have already implemented or are exploring the use of GenAI in recruitment. Furthermore, a survey of 5000 job seekers conducted by Canva revealed that almost half of them have used AI technology to enhance their resumes.

“We have observed a profound transformation in recruitment processes with the adoption of AI and GenAI,” concurs Ojasvi Pareek, senior manager at Recruitment Smart Technologies. “These technologies are helping companies streamline hiring by automating repetitive tasks.”

Moreover, in their ‘Resourcing and talent planning report 2024’, the Chartered Institute of Personnel and Development (CIPD) and Omni found that the increase in AI use in recruitment is being driven by widespread adoption of free GenAI tools, as well as software vendors incorporating GenAI features.

“Of the 1016 employers polled, 13 percent use chatbots to respond to candidates’ questions, 12 percent use AI to screen candidates based on the job description, 12 percent use AI in onboarding, such as automated background checks or document generation, and 12 percent use it for management information,” adds Hayfa Mohdzaini, senior technology policy and practice adviser at the CIPD.

Significant impact

According to PamTen’s 2024 ‘The Impact of Generative AI on Recruitment: Revolutionizing the Hiring Process’, there are six stages of the recruitment process, outlined below, in which GenAI can make a significant impact.

First, identifying skills and labour gaps. GenAI tools can provide valuable inspiration but cannot fully replace the expertise of a recruiter who understands the internal dynamics of the company. However, they can serve as a starting point for discussions by suggesting potential skill gaps based on external data. Some platforms are now integrating AI with company systems, giving them access to internal data.

Second, crafting job descriptions. Writing an engaging and inclusive job description is crucial to attracting top talent. GenAI can enhance the job description by improving tone and ensuring inclusivity. It can also help identify relevant skills and qualifications that expand the talent pool, making the process more efficient and effective.

Third, searching and matching talent. Using secure AI recruitment tools, such as large language models like ChatGPT, can help filter candidates based on qualifications and skills without breaching privacy. However, AI tools should be used as a complement to, not a replacement for, manual searches, as algorithmic biases can still affect the results.

Fourth, preselection and screening. AI tools can efficiently handle the preselection process by filtering out unqualified candidates. GenAI-powered chatbots, for instance, can ask screening questions and interact with candidates in a more human-like manner. This significantly reduces the time spent on manual screening and allows recruiters to focus on top-tier candidates.

Fifth, conducting interviews. While most companies still prefer face-to-face interviews, AI tools can assist in interview preparation. For instance, recruiters can use GenAI to create tailored, thought-provoking questions based on the candidate’s resume. On the candidate side, AI can be used for interview preparation, allowing applicants to practice responses in a simulated interview environment.

Lastly, onboarding new hires. Even after hiring, GenAI can continue to support the onboarding process. Virtual AI assistants trained on company policies and processes can guide new hires through their initial days. These assistants can answer questions, help complete onboarding tasks and even schedule meetings, ensuring a smooth transition for new employees.

Significant impact apart, the use of GenAI in recruitment is not without concerns. “Algorithmic bias, lack of transparency and potential over-automation remain key challenges,” says Mr Pareek. “These concerns need to be proactively addressed by ensuring algorithms are designed to mitigate bias and operate with transparency, offering recruiters tools that maintain fairness while enhancing efficiency.”

Another issue is the question of regulatory oversight, which, for the moment, is negligible, there being no single piece of legislation that governs the use of technology at work, including GenAI.

Widespread uptake

While the complete scope of its impact remains uncertain for now, one thing is certainly clear: the future of recruitment will see a continued rise in the adoption of GenAI technologies.

“Widespread uptake will be driven by mainstream HR and recruitment software vendors building in GenAI as a standard feature,” contends Ms Mohdzaini. “Custom, high investment GenAI tools may be adopted by the few organisations that have a need for them and can afford them, for example in high-volume recruitment.”

For Anurag Sahay, managing director of AI and data sciences at Nagarro, there is no scenario in which AI, or GenAI, will not be integral to workforce planning tools, with the only real questions being how soon it will be implemented and to what extent.

“While smaller businesses can swiftly adopt such tools, large enterprises face challenges related to privacy, security and regulatory concerns,” says Mr Sahay. “To succeed, enterprises must prioritise building their internal capabilities and aligning their organisational context to fully capitalise on the opportunities GenAI offers.”

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Fraser Tennant