AI talent acquisition software: a guide for HR teams

Traditional methods of hiring often restrict the number of potential hires. This makes it even harder to find the right fit for your company. AI talent acquisition software helps you broaden your search and increases the chances of hiring the right candidate for the job. That's why 90% of companies today rely on AI recruiting tools in their hiring process.²

To improve the talent acquisition process and help your HR team find the best candidates quicker, we revealn everything you need to know about AI talent acquisition software.

In this guide, you'll learn what AI talent acquisition software is, explore its pros and cons, and discover how to choose the right one for your needs. We also provide you with a list of recommended tools that you might consider adding to your HR tech stack.

Let’s dive right in.

What is AI talent acquisition software?

AI talent acquisition software is a technology that helps companies find and hire the right people for the right job. The software helps you find suitable talent by:

• Analyzing large amounts of candidate data.
• Spotting trends from past hiring data.
• Making accurate predictions about a candidate's performance.

HR teams, recruitment agencies, startups, and small businesses all use AI recruitment software. These AI-driven tools help them streamline their talent acquisition process. They also automate repetitive tasks and identify the most suitable candidates for job positions.

How does AI talent acquisition software work?

AI recruiting software uses machine learning, artificial intelligence (AI), and natural language processing. It predicts which candidate is likely to perform well in a specific job. First, the AI recruiting software collects data from several sources:

• Resumes
• Job applications and profiles from job boards
• Social media
• Professional sites

Using this data, it identifies potential candidates for the job. Then it ranks talent based on their qualifications and how well they fit the job description. This process reduces bias, and helps you find suitable candidates faster.

The software then generates reports and analytics about the entire process. These reports include how long it takes to hire, where candidates come from, and how good the hires are. These insights help recruiters make unbiased hiring decisions.³

The tool also learns from previous successful hires. This increases your chances of making accurate predictions — you can tell which candidates are more likely to succeed in similar roles in the future.

To get to know your candidates better, and simplify the recruiting process further, pair the software with Fingerprint for Success (F4S). Once candidates have taken the free F4S assessment, the innovative people analytics platform F4S provides crucial insights into a person's work preferences, strengths, and blind spots. These insights help your hiring team determine if potential job candidates fit your company and their team's values and job requirements.

F4S dashboard

96% of senior HR professionals believe AI will positively influence talent acquisition and retention.⁴ Combining the two tools increases the likelihood of employees doing their best work, and staying longer with your company.

What are the pros and cons of using AI talent acquisition software?

67% of HR professionals believe that AI offers a lot of advantages and can make a positive difference in the recruitment process.⁵ But AI recruiting platforms have their disadvantages too. Let’s look at both.

Pros of AI recruiting platform

• Automates administrative tasks, such as the initial candidate screening process.
• Identifies relevant candidates based on keywords and qualifications.
• Expands the talent pipeline, and reduces manual effort.
• Makes finding the most qualified candidates easier.
• Analyzes candidate qualifications, and compares them to job requirements.
• Helps recruiters pick candidates who match the skills and experience for the job.
• Looks at past successful hires to predict how potential employees might perform.

Cons of AI recruiting platform

• Lacks the personal touch and intuition human recruiters do.
• Makes biased hiring decisions, as AI is only as good as the data it is trained on.
• Relies on available data, and may have technical errors that affect its output.
• Requires initial setup and training, which can be time-consuming and costly.

What's the role of AI in recruitment?

AI in recruitment provides several benefits to recruiters. It helps improve candidate engagement, reduces bias, and makes the hiring process smoother. AI-based tools also analyze resumes, communicate with candidates, and make well-informed decisions.

How is artificial intelligence shaping the recruitment industry?

1. Automated sourcing

AI automatically searches through various online platforms. It also reviews candidate profiles to match the job requirements.

This is helpful because 52% of talent acquisition leaders struggle to screen candidates from a big pool of applicants.⁶ It also helps recruiters discover talents that may have been overlooked. Plus, it widens the pool of potential candidates, and increases the chances of finding the right fit for a job.

2. Chatbots for initial interaction

AI-powered chatbots can engage with candidates on your behalf.

Using a chatbot significantly increases the number of job seekers who show interest in your company, and complete the application.⁷ These chatbots provide personalized responses to candidate questions. They also gather basic information and schedule interviews. This is helpful for recruitment teams during the early stages of the hiring process, and improves the candidate experience.

3. Predictive analytics

AI can assess candidates' skills through online tests. This helps recruiters evaluate candidates objectively, and identify the best fit for a particular role. AI also analyzes large sets of data to make predictions. With the tool, you can tell if a candidate will accept a job offer, or perform well in a role.

4. Employee retention and development

AI can help organizations identify factors that lead to employee turnover. It analyzes data on employee performance, surveys, and other important metrics. The insights help you create more effective employee retention strategies. It also supports talent development in your company.

5. Improved diversity and inclusion

68% of recruiting teams think using AI in hiring helps reduce unintentional bias.⁸ That’s because AI only looks at a candidate's skills and qualifications, and doesn't consider other factors that might introduce bias.

What's the impact on candidates vs recruiters?

The impact of AI talent acquisition software is different for candidates and recruiters. Let's look at how it affects each group:

What's the difference between AI recruitment and recruitment automation?

AI recruitment uses smart algorithms and data analysis to find and select candidates. Its main goal is to improve accuracy and efficiency in identifying talent. AI also reduces bias, and makes decisions based on real data.

Recruitment automation involves using technology to automate repetitive tasks in the hiring process. Its main goal is to make the recruitment process smoother, and save time. As a result, recruiters can focus on important tasks such as evaluating candidates and building relationships.

So, in a nutshell:

AI recruitment improves talent acquisition through advanced algorithms and predictive analytics. It focuses on finding the right candidates.

Recruitment automation automates manual tasks. This enhances the recruiting process, and makes the entire process smoother and more effective from start to finish.

8 uses of AI talent acquisition software

1. Resume screening

AI software can read and evaluate resumes to find the right candidates. It uses special algorithms to understand important details like skills, experience, and qualifications. This saves recruiters time by quickly filtering out candidates who don't meet the requirements.

2. Candidate sourcing

AI software can search for candidates on job boards and social media platforms. It uses smart algorithms to match job descriptions with candidate profiles, finding more potential talent for recruiters to consider, including passive candidates.

3. Bias reduction

AI talent acquisition software tries to be fair by focusing on objective factors such as qualifications and skills. It assesses candidates based only on what they can do, regardless of factors like gender or ethnicity.

4. Candidate matching

AI software compares candidate profiles with job requirements to find the best fit. It looks at skills, experience, qualifications, and how well they fit the company's culture. This helps recruiters find candidates who are a good match and likely to succeed.

5. Automated communication

AI-powered software can send candidates automatic emails, messages, and notifications. It keeps candidates updated on their application status and interview schedules. The recruiting solution helps provide a smooth candidate experience with consistent communication.

6. Predictive analytics

AI talent acquisition software uses data to predict how well a candidate might do in a job. It looks at past data and patterns to find out what makes a successful hire. This helps recruiters make better decisions based on facts, and choose candidates who are likely to do well.

7. Onboarding assistance

Some AI software helps with onboarding new hires. It provides resources, training materials, and personalized plans to help them transition smoothly into their new roles.

8. Performance analysis

AI software can analyze how well recruitment campaigns and strategies are working. It tracks metrics such as:

• How long it takes to hire
• How much it costs
• Where candidates come from
• How good they are

These performance metrics help recruiters evaluate and improve their recruitment methods.

What are the benefits of using AI talent acquisition software?

1. Saves time

86% of recruiters using AI say it speeds up the hiring process.⁹

That’s because AI automates repetitive tasks in the hiring process and speeds up the candidate evaluation process. When HR teams don’t have to spend as much time manually reviewing resumes and scheduling interviews, it frees them up to focus on more strategic activities.

2. Enhances candidate quality

AI-powered algorithms assess resumes, applications, and other relevant candidate data. It looks at candidate qualifications, work experience, and specific skills to determine whether someone is a good fit for a job. This helps companies find candidates who have the right expertise and abilities for the position.

3. Reduces bias

Bias happens when unfair preferences or prejudices affect how recruiters make decisions during hiring. 63% of hiring managers admit to making judgments about job applicants within the initial 15 minutes of an interview.¹⁰

Unlike humans, AI focuses on qualifications, skills, and experience when evaluating candidates. That’s why 68% of recruiters believe using AI can help remove biases from hiring.¹¹  AI can also hide personal details, such as name and gender, during the early stages of screening. That way, candidates are judged solely on their abilities. This promotes fair and unbiased evaluations. It also helps diversity and equal opportunities.

4. Expands candidate pool

AI software can efficiently search through a large number of resumes and online profiles, reaching a wider talent pool. This expands your chances of discovering highly skilled candidates who might have been missed through manual methods alone.

5. Informs decision-making

AI-based solutions provide data-driven insights and predictive analytics, enabling you to make more informed hiring decisions. By leveraging these insights, you can identify candidates with the highest potential for success, leading to better long-term outcomes for your organization.

6. Saves cost

Automating hiring tasks using AI software helps reduce recruitment costs. Experts say AI reduces cost-per-hire by as much as 30%.¹² This means that you can save a considerable amount of money throughout the hiring process

Does AI improve the candidate experience?

Yes, it does. AI talent acquisition software improves the candidate experience by providing faster and more efficient, personalized communication. For example, AI-powered chatbots answer candidates' questions and provide timely updates. This helps candidates feel valued and engaged.

But, there is a possibility of bias in AI talent acquisition software.¹³

The software depends on algorithms and data analysis. So if the data used is biased toward specific demographics, it can lead to unfair judgments during candidate evaluation. This can create barriers for candidates from underrepresented groups.

Is there enhanced data analysis and greater insights available?

AI talent acquisition software can identify patterns and trends in candidate data. For example, it highlights candidates who possess those desired qualities. This makes it easier for employers to identify the best-fit candidates for a job.

Additionally, the software can generate reports that present the analyzed data in a logical way. This helps employers make informed decisions that are based  on data-driven insights rather than subjective judgment.

Does it improve candidate matching and if so, how?

Yes, AI talent acquisition software can improve candidate matching.

When recruiters use the tool, they input the specific requirements for a job. This often includes the skills, experience, and education needed.

The software then compares these requirements against candidate data to see if there’s a good match. The algorithm uses keywords, work experience, and education details to compare. This could also include specific certifications or language skills.

This analysis gives you a list of candidates who best match the job requirements. It ranks them based on how well they match the criteria, and the most suitable candidates appear at the top of the list.

What are the risks of using AI talent acquisition software?

While AI talent acquisition software has several benefits, there are also potential risks, such as:

1. Bias

AI software can unintentionally exhibit bias in the hiring process.¹⁴ This happens when the algorithms used to evaluate candidates are trained on biased data, or reflect the biases of the human creators. As a result, certain groups may face unfair disadvantages or be excluded from consideration.

To reduce hiring bias, you should:

• Educate recruiters and hiring managers about biases in hiring.
• Keep training recruiters on unconscious bias and diversity.
• Include people from different backgrounds in your hiring team.
• Conceal personal details like name, gender, age, and ethnicity from resumes.
• Ask all candidates the same standardized questions to make fair comparisons.
• Ask candidates for feedback, and make improvements based on their experiences.
• Regularly review the hiring process to identify and address any biases.

2. Lack of human touch

AI software can automate and streamline the hiring process, but it lacks the personal touch and human judgment that is valuable in certain situations. For example, some candidates may have unique experiences or skills that the algorithm may miss, which may have been picked up by the human touch.

3. Limited contextual understanding

AI talent acquisition software might have difficulty understanding subtle details. This could be: how well a candidate fits into the company culture, their body language, or subjective qualities. As a result, you could miss or misunderstand important candidate qualities. This could lead to hiring choices that aren't the best for your company.

4. Over reliance on data

AI talent acquisition software heavily relies on data analysis to make hiring decisions. While data can provide valuable insights, it may not always capture the full picture of a candidate's potential or fit for a job. Relying solely on data-driven decisions may overlook important intangible qualities that contribute to a candidate's success.

5. Automation bias

This happens when recruiters blindly trust the decisions AI makes, without human oversight. This can result in missed opportunities. Your team could dismiss potentially strong candidates who do not fit the predefined algorithmic criteria.

5. Privacy and data security

AI software processes and stores vast amounts of candidate data, including personal information. Data breaches can happen if the software doesn’t handle the data appropriately. Or vulnerabilities in the system could lead to unauthorized access to sensitive candidate information.

How to automate your hiring process

1. Define your hiring workflow

Clearly outline the steps involved in your hiring process. This may include steps like job posting, candidate screening, interviews, and final selection. Understanding the workflow will help you identify those areas that can be automated.

2. Use an applicant tracking system (ATS)

An ATS is software that helps you manage and track job applications. It allows you to store candidate information, track their progress, and streamline communication. Choose an ATS that fits your needs and integrates well with other tools you use.

3. Create online job listings

Instead of manually posting job openings, use online job platforms and your company website to create and publish job listings. These platforms automatically collect and organize applications, making it easier for you to manage and review them.

4. Implement resume screening software

Resume screening software uses AI algorithms to analyze resumes and filter out candidates who don't meet specific criteria. This saves you time by automatically shortlisting candidates based on keywords, skills, and qualifications.

5. Use pre-employment assessments

Use online assessment platforms to automate skills testing, personality assessments, the F4S work motivations assessment, or other relevant evaluations. These platforms can automatically score assessments and provide objective results.

6. Schedule and conduct automated interviews

Consider using video interview platforms that allow you to pre-record interview questions. Candidates can then record responses at their convenience, which you can review later. This eliminates the need for scheduling and conducting live interviews for every candidate.

7. Communicate with candidates via email automation

Set up automated email templates for different stages of the hiring process. These templates can be used to send updates, interview invitations, or rejection notifications to candidates, saving you time and ensuring consistent communication.

8. Analyze data and generate reports

Use analytics tools to analyze hiring data, such as the number of qualified applicants, time to hire, and candidate conversion rates. This data can provide insights into the effectiveness of your hiring process, and help you identify areas for improvement.

While automation can streamline your hiring process, striking a balance is important. So, to reduce bias, involve a qualified human professional in the process. They should conduct live interviews to assess cultural fit before making a decision.

Also, regularly review and refine your automated processes to ensure they align with your hiring goals and provide a positive candidate experience.

What's the best AI talent acquisition software?

Greenhouse is one of the best AI talent acquisition software based on popularity and user reviews.¹⁵ The applicant tracking software and hiring platform help businesses of any size and within any sector find the right talent. The tool has a user-friendly and intuitive web-based interface. Key features include applicant tracking, interview management, collaboration tools, reporting and analytics, and customizable workflows. Recruiters can post job openings, manage candidates, track progress, and access relevant hiring information.

Greenhouse uses AI-powered algorithms to automatically parse and extract relevant information from resumes. This saves time and effort, eliminating manual data entry. The tool also integrates with other business solutions, including job boards, background check providers, video interviewing tools, and HRIS systems.

Greenhouse uses a subscription-based pricing model with three different pricing tiers.¹⁶ To determine which pricing tier is the best fit for your specific requirements, have a consultation with a Greenhouse account executive. They can provide personalized guidance to help you choose the right plan.

If you want to gain deeper insights into a potential hire’s skills, motivations, and work styles, consider pairing the tool with Fingerprint for Success (F4S). F4S analyzes candidates' motivations and working styles. This allows recruiters to easily identify candidates whose strengths align with the role and organization, which results in better matches. Plus, you can access F4S assessment results and candidate information within Greenhouse, as both tools integrate with each other.

To get started, take F4S’ free work style assessment. This consists of 40 questions and takes 15-30 minutes to complete. Send an invitation to your team’s email address to get them to take the assessment too. Once you have completed the assessment, you’ll find your results in the user-friendly dashboard.

F4S team dashboard

The evidence-based assessment showcases your motivations across 48 different categories, and reveals your communication and work preferences.

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You will also see a dedicated ‘Teams’ tab. The team tab provides key information about team dynamics. Add a potential candidate to the team to see how they fit in or provide cognitive diversity with the following:

Team Culture reveals the overall energy of the team, what is most motivating to them, and where each individual team member ranks. For example, you might have a team that likes to beat to their own drum, prefers a high level of tolerance and low interest in rules, and enjoy working with money and budgets.

Team Affinities uncovers the attitudes your team has which fosters energy, fulfillment and flow. Some attitudes include the desire to dream and envision the big picture, a love of problem solving, a high respect for leadership, and being experimental when starting a project.

Team XFactors indicates whether individuals and teams are more aligned with early stage venture success versus building businesses for a longer period of time. This insight can be key when considering team building and hiring candidates that have the right skills for the job.

These insights help your hiring team identify the best candidates for a role. F4S also integrates with your existing HR tech stack, including Greenhouse.

Two other popular tools with AI-based hiring tools are Lever and SmartRecruiters.

How to choose the right AI talent acquisition software

Choosing the right AI talent acquisition software can be crucial for your organization. Here are tips to help you make the right choice:

1. Identify your needs

Start by understanding your organization's specific hiring needs. Consider factors like the size of your company, the hiring volume, the hiring process's complexity, and the features you require in the software.

2. Research different software options

Look for reputable AI talent acquisition software providers. Explore their sites, read customer reviews, and compare their features and pricing. Pay attention to factors like ease of use, integration capabilities, customer support, and the software provider's reputation.

3. Consider budget

Determine your budget for the software. Some providers offer different pricing plans, so ensure that the software you choose fits within your budget constraints. Keep in mind that investing in quality software can have long-term benefits.

4. Assess compatibility

Evaluate how well the software aligns with your existing HR systems and processes. Consider factors like data integration, user interface, and customization options. Ensure that the software can seamlessly integrate with your current systems.

5. Request demos and trials

Request demos or free trials from the shortlisted software providers. This will give you hands-on experience and allow you to evaluate the software's functionality, user-friendliness, and how well it meets your specific needs.

6. Seek recommendations

Reach out to industry peers, HR professionals, or online communities to seek recommendations based on their experiences with different AI talent acquisition software. Their insights can provide valuable perspectives, and help you make an informed decision.

7. Check customer support

Consider the level of customer support the software provider offers. Reliable customer support is crucial in case you encounter any issues or need assistance with the software.

8. Consider scalability

Think about your organization's future growth. Choose a software solution that can accommodate your future hiring needs and can adapt as your organization expands.

What are the top recruitment automation platforms?  

1. Paradox AI

Paradox AI uses artificial intelligence to help with hiring and engaging job candidates. It is suitable for businesses of all sizes looking to automate their candidate screening and improve the candidate experience.

The tool has features like chatbots for candidate screening and engagement, interview scheduling automation, and candidate relationship management. Users appreciate Paradox AI's intelligent chatbot capabilities, making candidate interactions more engaging and efficient. Currently, the tool has a 4.6/5 rating on G2.¹⁷

2. Humanly

Humanly provides features like conversational AI chatbots for candidate screening and interview scheduling, candidate sourcing, and data analytics. It helps companies manage high volumes of candidates and improve their hiring processes.

Humanly is a good fit for businesses looking to automate candidate interactions and streamline their hiring processes. Users appreciate Humanly for its conversational AI chatbots. It handles candidate inquiries and scheduling, freeing up recruiters' time. Currently, the tool has a 4.9/5 rating on G2.¹⁸

3. Fetcher AI

Fetcher AI offers features like candidate sourcing, resume parsing, and email outreach automation. The outbound recruiting platform helps recruiters with high-volume hiring. They can find qualified candidates and enhance their sourcing strategies.

Fetcher AI is ideal for companies seeking to improve their candidate sourcing and outreach efforts. Users love it for its ability to quickly source and parse resumes, saving time and effort in candidate sourcing. Currently, the tool has a 4.7/5 rating on G2.¹⁹

4. HireEZ

HireEZ provides features like applicant tracking, candidate management, interview scheduling, and reporting. It helps streamline the hiring process, track candidate progress, and improve collaboration among hiring teams.

HireEZ is suitable for businesses of all sizes looking for an all-in-one hiring solution. Users appreciate HireEZ's user-friendly interface, making it easy to manage candidates and track the hiring process. Currently, the tool has a 4.6/5 rating on G2.²⁰

5. Manatal

Manatal helps streamline the hiring process, centralize candidate data, and improve team collaboration. It offers features such as applicant tracking, candidate sourcing, resume parsing, interview management, and collaboration tools.

Manatal is a good fit for businesses of all sizes that want a comprehensive and user-friendly hiring platform. Users love Manatal for its intuitive interface and comprehensive features covering all aspects of the hiring process. Currently, the tool has a 4.8/5 rating on G2.²¹

6. Eightfold AI

Eightfold AI provides key features like candidate sourcing, resume matching, talent management, diversity hiring, and internal mobility. It helps companies find the right talent, nurture their employees, and promote diversity and inclusion.

Eightfold AI is ideal for companies looking to improve their talent acquisition and internal talent management processes. Users appreciate Eightfold AI for its powerful AI algorithms that enable accurate talent matching and personalized career development opportunities. Currently, the tool has a 4.2/5 rating on G2.²²

7. iSmartRecruit

iSmartRecruit offers highly-scalable AI Recruitment Software that automates the recruitment workflow and effectively streamlines the overall recruiting process for mass recruiters, hiring managers, HRs and staffing agencies. It enables hiring teams to create tailor-made workflows as per the organisations' requirements.The Applicant Tracking System (ATS) iSmartRecruit offers to reduce the time-to-hire by 57% approximately. The AI-powered candidate profile matching feature uses AI to recommend perfect candidates for each job. The AI Recruitment Software facilitates talent acquisition (TA) by providing easy-to-use features and AI-powered tools, saving recruiters' valuable time and cost in the TA process.