New report reveals AI's new role as the first 'decision-maker' in hiring
Nearly three in four hiring managers are now using AI tools in recruitment, according to a new report, which found that the technology is the first "decision-maker" faced by many job applicants.
A new report from MyPerfectResume revealed that 73% of employers are using AI in hiring decisions, which are rejecting job applications before any human review.
Half of employers using AI said the technology is automatically rejecting up to 50% of the job applications that they receive.
"For most job seekers today, the first 'decision-maker' isn't a recruiter, it's an algorithm," the report read. "That means a significant portion of applicants never reach a hiring manager at all."
The use of AI tools to filter applicants appears to be employers' response to surging job applications as more jobseekers use the technology to mass apply for job openings.
This adds to their growing list of responses to surging applications, such as reverting to face-to-face exercises in hiring, and introducing a pay-to-apply system.
Risks of using AI as a résumé filter
Jasmine Escalera, career expert at MyPerfectResume, acknowledged the benefits that come with using AI to shortlist job candidates.
But she also warned about its risks.
"When more than half of employers are using these tools to shape workforce decisions, the stakes are incredibly high," Escalera said in a statement.
"The concern is that speed and efficiency are being prioritised over accuracy and fairness, and that can have real consequences for qualified candidates."
Employers seem to be aware of this impact as well, with 47% saying AI may have filtered out candidates they would have likely advanced.
"The trade-off between speed and accuracy is becoming more visible. Employers gain efficiency but risk overlooking candidates who don't perfectly match algorithmic criteria," the report read.
The challenge for employers now is to ensure that fairness remains despite the use of AI tools during hiring, according to the report.
"Organisations face a balancing act: leveraging AI for efficiency while ensuring that accuracy, fairness, and human oversight aren't lost in the process," it said.
