AI could hurt employers in race for top talent

Companies embracing AI to recruit faster could be damaging their ability to compete for top talent, according to a major new study.

Researchers from the Royal Docks School of Business and Law found that while AI dramatically improves the speed and efficiency of hiring, an overreliance on automated systems can make organizations less attractive to talented applicants.

The researchers describe this as the “resourcing paradox.” Gains in efficiency by using AI may come at the expense of the human connections that help organizations attract and retain the best people.

The review, which analyzed 79 studies, found that AI is highly effective at routine tasks such as screening CVs, matching candidates to vacancies and arranging interviews. However, candidates are more likely to trust the process when organizations are open about how AI is being used and when people remain involved in key decisions. The paper is published in the Employee Relations: The International Journal.

The researchers argue that AI should support recruiters who can judge qualities such as empathy, potential and cultural fit.

Co-author Professor Kirk Chang said, “The organizations that win the competition for talent won’t be those that use the most AI. They’ll be the ones that combine AI’s speed with human judgment, transparency and empathy. Recruitment is ultimately about people, and technology works best when it helps people make better decisions, not when it replaces them.”

Co-author Professor Toyin Adisa said, “Recruitment is often an applicant’s first real experience of an organization. If that experience feels impersonal or unfair, companies risk losing talented people before they’ve even had a conversation. AI should help create better hiring decisions, not become a barrier between employers and the people they need to recruit to stay competitive.”

The study concludes that employers should be transparent about how AI is used, regularly audit systems for bias and ensure human oversight remains part of recruitment decisions.

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