9 percent of companies express concerns about AI bias in hiring decisions.
Seven in ten companies will use artificial intelligence (AI) in hiring by 2025. Over half (51 percent) of companies are currently leveraging AI technology in their hiring processes, and this number is set to rise. It is projected to reach 68 percent by the end of 2025, particularly among larger companies, according to a recent survey by ResumeBuilder.
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The survey highlights that 82 percent of companies use AI to review resumes, while 40 percent employ chatbots to communicate with candidates. Additionally, 23 percent use AI to conduct interviews, 64 percent apply AI to review candidate assessments, 28 percent use it for onboarding new hires, and 42 percent scan social media or personal websites as part of the hiring process. Notably, only 0.2 percent of respondents report no AI usage in their hiring practices.
Looking ahead, according to the report, companies plan to enhance AI's role in various stages of hiring by 2025. Most companies plan to use AI for reviewing resumes (83 percent) and conducting candidate assessments (69 percent). AI will also play a role in analysing candidates' digital footprints, with nearly half (47 percent) of companies planning to scan social media profiles or personal websites as part of the evaluation process. Furthermore, 39 percent will implement AI-powered chatbots to communicate with candidates throughout the hiring journey.
"As organisations 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," says Resume Builder's Chief Career Advisor Stacie Haller.
"Given the competition for top talent, companies understand that the longer the hiring process takes, the higher the risk of losing the best candidates. AI helps by automating tasks, allowing organisations to speed up their decision-making and reduce the manual workload of hiring managers.
"Organisations adopt AI to varying degrees. While some use it primarily for resume screening, others incorporate AI more extensively, using it in everything from chatbots that handle candidate queries to sophisticated algorithms that predict a candidate's success based on historical data," Stacie Haller added.
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The report states that companies currently using AI in interviews are doing so across a range of tasks. A total of 81 percent of companies use AI to ask interview questions, 65 percent employ it to analyse candidates' language, and 60 percent use it to transcribe interviews and assess tone, language, or body language. Additionally, 52 percent utilise AI to collect data through facial recognition.
By 2025, 76 percent of companies plan to use AI for asking interview questions, 63 percent will collect facial recognition data, and 62 percent will analyse candidates' language. Furthermore, 60 percent will use AI to transcribe interviews, while 59 percent will assess tone, language, or body language, according to the report.
"Candidates must recognise the increasing role AI plays in the hiring process. It's critical that applicants tailor their resumes for each specific job, highlighting the key skills and qualifications that are mentioned in the job description," says Haller.
"In this increasingly automated landscape, candidates who adapt their approach by preparing for AI-driven screenings and interviews will have a competitive advantage in their job search."
According to the report, AI's influence on interviews is also growing, with 24 percent of companies currently allowing AI to manage the entire interview process -- a figure expected to increase to 29 percent by 2025.
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Currently, 21 percent of companies automatically reject candidates at all stages of the hiring process without human review, while 50 percent use AI only for rejections at the initial resume screening stage. However, 29 percent maintain human oversight for all rejection decisions.
Looking ahead to 2025, slightly fewer companies (16 percent) plan to allow AI to reject candidates throughout the entire hiring process, while 49 percent will limit AI's ability to reject candidates to initial resume reviews.
However, the rise of AI in hiring raises concerns over bias. The survey found that 9 percent of companies believe AI consistently produces biased recommendations, with age bias being the most cited concern (47 percent), followed by socioeconomic status (44 percent) and gender (30 percent). As firms increasingly rely on AI, 56 percent express worry that it may inadvertently screen out qualified candidates, and 48 percent are concerned about the lack of human oversight.
"It's important to note that while AI can be a powerful tool, it's not without its challenges. If not properly calibrated, AI systems can introduce biases based on past hiring patterns or data that reflect historical inequalities. Therefore, companies must strike a balance between speed, efficiency, and fairness to ensure that AI enhances, rather than hinders, their ability to find the best talent," added Haller.
The survey, conducted by ResumeBuilder, included responses from 948 business leaders, all of whom met specific qualifications regarding income, education, and managerial roles.
