Machine learning and workforce analytics are transforming recruitment and changing the way employers hire; but recruiters, employers and talent tech providers around the world are starting to grapple with some new risks.

For example, New York City has now introduced the Automated Employment Decision Tool Law, which means employers using AI must tell candidates they’re using it and submit to an annual independent audit to prove their systems aren’t racist or sexist. As the industry looks at how to effectively audit bias, and how algorithms can make decisions, this is a just one attempt at managing the risks of AI in recruitment and curbing the gold-rush mentality.

Currently, there are no explicit laws governing the use of AI in the UK but, under Common Law, employers need to be able to explain employment decisions, which may limit the extent to which AI can make them. The Equality Act 2010 prohibits discrimination by employers on the grounds of age, sex or race, so there is a risk that AI tools influencing decisions could be deemed unlawful. And Privacy and Data Protection Law restricts the use of surveillance tools to monitor workers, how data is processed and collected, and how people are profiled.

Recruitment leaders need to ensure security of candidate data when using new AI tools

Whilst everyone is excited about the possibilities of ChatGPT, recruitment consultants need to adjust their process for different results, need new training on prompts, and need access to the right training data to curate differentiated, authentic and unbiased content. Recruitment leaders need to ensure security of candidate data when using new AI tools, give consultants access to analytics to support more strategic advice, and optimise opportunities around predictive AI.

Last week, Microsoft announced that demand for its AI tools helped it to accelerate sales, as revenue in September to December rose 18% year-on-year to more than $60bn. Its Copilot programme, which can summarise Teams meetings, draft emails and create Powerpoint presentations, will no doubt add to this continued growth.

“Copilot and AI do the jobs that take up so much time for recruiters and automates things like database management, generating interview summaries and even keeping in contact with candidates,” said Daniel Fox, Marketing Manager of Mercury, the recruitment software built on the Microsoft platform. Speaking at a recent Lunch & Learn on Talent and Tech strategies in recruitment, Dan added: “It also provides analytics to understand the gaps in your offering, whether that’s why it’s taken so long to fill a role, how to increase win rate, or when to approach candidates who are starting to look for a new opportunity. We can do so much more with AI, but it relies on robust and secure data sets to be effective.”

Access to data is the biggest barrier and enabler of AI and TI (Talent Intelligence), for both talent solution providers and inhouse TA leaders, to transform strategic workforce planning.

Helping employers to better understand the skills and capability they have in their organisations will be a focus for talent solutions providers in 2024. Speaking at TALiNT Partners last RPO Leader Dinner & Debate, one of our members observed that: “If it costs less to pay good people what they’re worth than to recruit their replacement then RPOs are perfectly placed to help employers better retain, develop, and reward the right talent; but only if they have full visibility of the right data to update skills and market value.”

Helping employers to better understand the skills and capability they have in their organisations will be a focus for talent solutions providers in 2024.

This was explored further in our first Marketing Forum of the year in Manchester last month, which brought together a select group of marketing and growth leaders from some of the sector’s most innovative and successful recruitment firms.

The group observed that AI will enable faster and more comprehensive capture and curation of feedback from clients and candidates to improve service and develop new solutions. It’s also clear that marketing leaders are playing a key role in designing recruitment research & analytics services and using TI to price them more accurately.

Members like NESFircroft and Goodman Masson have won TIARA awards for demonstrating impact and competitive advantage around insight and inclusive recruitment services. As this becomes table stakes for employers, the big questions for recruiters are:

• What data strategy will support best use of AI and what new roles should Staffing and Talent Solutions providers be recruiting for in their own organisations?
• Where can recruiters find the right talent and skills to develop and deliver research & analytics services?
• Who should lead transformation in recruitment to drive adoption from consultants and integration between new tools and teams?
• How can recruiters enhance their capability with strategic partners and which are helping them to de-risk AI & Analytics-based services for themselves and their clients?

These and related questions will be explored at TALiNT Partners Foresight Summit on 5th March and a Dinner & Debate co-hosted with Mercury on 26th March. To find out more about our full programme of events and member benefits for Staffing and Talent Solutions leaders, visit https://talintpartners.com/membership/.