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NextGen Magazine

 
 

Survey: Majority of Firms to Adopt AI in Their Hiring Processes in 2025

By:
Karen Sibayan
Published Date:
Nov 1, 2024

GettyImages-1303506802-resume (1)

A recent survey by Resume Builder shows that over half (51%) of firms currently use artificial intelligence (AI) in their hiring processes. More firms are expected to get on board with the technology. By the end of 2025, 68% of firms will use AI to recruit new talent. Bigger companies are also more likely to adopt these technologies. 

“As organizations face an overwhelming influx of resumes, especially with the expansion of remote and hybrid work models, more companies are leveraging AI in the hiring process,” noted Resume Builder’s Chief Career Advisor Stacie Haller. “These models have broadened the talent pool, allowing candidates from various geographic locations to apply, resulting in an exponential increase in applications for every open position.” 

For the October survey, 948 business leaders participated. It found that 82% of firms utilize AI to review resumes, while 40% employ AI chat bots to communicate with candidates. Roughly 23% use AI to conduct interviews, and 64% apply AI to review candidate assessments. Further, 28% of firms use AI for onboarding new hires, and 42% scan social media or personal websites as part of the hiring process. Only 0.2% of firms report not utilizing AI in their hiring practices. 

Companies will be maximizing AI to perform both perfunctory tasks and even those that used to require human expertise.  

For instance, most firms (83%) plan to utilize AI next year to review resumes and conduct candidate assessments (69%). AI will also be used to analyze a candidate’s digital usage, with roughly half (47%) of firms planning to scan social media profiles or personal websites as part of the evaluation process. Additionally, 39% will implement AI-powered chat bots to communicate with candidates throughout the hiring process. 

The technology's reach will go beyond initial screenings, with 36% of firms intending to integrate AI into onboarding processes. According to Resume Builder, a smaller portion (19%) is even looking to AI to conduct interviews. 

Firms that currently use AI in interviews do so across various tasks. Eighty-one percent of firms use AI for interview questions, 65% employ it to examine the recruits’ language and 60% use it for transcribing interviews and assessing tone, language or body language. Additionally, 52% utilize AI to collect data through facial recognition. 

This is only the beginning. By 2025, 76% of companies will use AI to ask interview questions, 63% will gather facial recognition data, and 62% will analyze candidates’ language. Additionally, 60% will use AI to transcribe interviews, while 59% will assess tone, language, or body language. 

Currently, 24% of companies have AI conduct the entire interview process, and this figure is only anticipated to increase to 29% by next year. 

Currently, 21% of companies automatically reject candidates at all stages of the hiring process that do not have human review, while 50% use AI only for rejections at the initial resume screening stage. However, 29% maintain human oversight for all rejection decisions. 

Despite the increase in companies using AI to select candidates, they are a little reticent about employing AI to reject those who don’t meet their standards or qualifications. In 2025, slightly fewer firms (16%) intend to let AI reject candidates during the hiring process, while 49% will limit AI’s ability to reject candidates to initial resume reviews. Meanwhile, more (35%) still plan for humans to make rejection decisions. 

However, despite the perks, some challenges exist for firms that intend to adopt AI in hiring. One of them is bias. Roughly 56% of firms worry that AI could screen out qualified candidates, and 48% are concerned about no human oversight. Additionally, 46% are afraid that AI may introduce bias based on factors such as age, gender or race. 

Regarding bias in AI hiring tools, 9% of firms that utilize the technology report it always produces biased recommendations. Meanwhile, 24% say it often does. Another 34% say bias happens sometimes, 30% think it happens rarely, and only 4% say AI never produces bias. Regarding the specific types of bias AI introduces, 47% of firms believe it results in age bias, 44% say socioeconomic bias, 30% mention gender bias, and 26% point to racial or ethnic bias.