Recruitment Returns to Human Connections as AI Floods Hiring

Artificial intelligence is changing how people apply for jobs, but it is also pushing recruitment towards more traditional ways of identifying candidates.

According to figures cited from hiring platform Greenhouse, 87% of UK recruiters are seeing AI used in at least half of the applications they receive. Recruiters are also dealing with large numbers of applications that may appear polished but offer little help in distinguishing one candidate from another. Greenhouse's research indicated that the volume of lower-quality applications is a major concern for many recruiters, while only a small share of applicants progress to interviews.

The growing use of AI has also weakened the value of traditional application materials such as CVs and cover letters. Judd Kessler, a professor at the Wharton School of the University of Pennsylvania, has studied how cover letters are losing their ability to provide meaningful information when applicants can easily generate highly polished messages.

As a result, recommendations, referrals and personal networks are becoming more important signals in the hiring process. A recommendation can carry greater weight because the person supporting the candidate is investing their own time and professional reputation.

Research involving participants in New York City's summer youth employment programme found that young people who received recommendations from their supervisors experienced positive employment outcomes over the following years. Those who used the letters in job applications were more likely to secure work sooner and were more likely to find jobs connected to their areas of interest.

Recruitment and career specialists are also seeing greater importance placed on trusted referrals. Long-standing relationships between employers and recruiters can make a recruiter's recommendation particularly valuable, as the recruiter is putting their professional credibility behind the candidates they present.

However, a greater dependence on referrals and personal networks could create challenges for diversity and inclusion. Hiring through familiar networks can reinforce existing inequalities and may result in organisations repeatedly recruiting from similar groups.

One possible response is to give candidates more opportunities to demonstrate their actual abilities earlier in the hiring process. As AI makes traditional application materials easier to produce, employers may need to find new ways to assess candidates while maintaining fair and inclusive recruitment practices.