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AI in early talent recruitment

In a fast-moving landscape, technology has enabled employers to be innovative in the recruitment process. Application tracking systems, online job boards, social media screening and video interviews are just a few changes we have seen in recent years. But there is one that is now leading the way: artificial intelligence (AI).

Whilst AI’s role in recruitment is not new, the speed at which it has exploded is presenting both opportunities and challenges to recruiters. Conversations with firms tell us that, anecdotally, candidates are increasingly utilising AI in their applications. In this evolving area, employers need to cultivate a response.

Some are actively striving to get ahead of the curve, whilst others are considering how AI could complement their existing processes.

There is no shortage of research articles and insights on this topic, but we have partnered with early careers specialists, The Institute of Student Employers (ISE), to bring you the latest update on how employers from all sectors are managing the use of AI in the recruitment process.

Institute of Student Employers (ISE)

"With job applications soaring, employers are looking for quicker and more efficient ways of managing high volumes of candidates. AI provides a solution and the Institute of Student Employers (ISE) found use of AI to recruit apprentices and graduates has tripled - from 9% in 2022 to 28% 2023.

While ISE data shows AI has been adopted most frequently in online psychometric assessments, it is also commonly used to pre-screen candidates and update them about the recruitment process as well as analyse video interviews.

Employers reported AI is increasing speed and efficiency (83%), making it easier to analyse large volumes of data (64%)

and enabling repetitive tasks to be automated (59%). While many employers are reaping the benefits of AI in recruitment, there are challenges and concerns. Research by Arctic Shores found that 72% of students and candidates are already using some form of generative AI regularly, and almost a fifth are using it to complete job applications or assessments.

In response, we’ve heard employers take a number of different approaches. Ultimately, there are three options:

Ban its use and be explicit about it
Stay neutral — don’t explicitly tell candidates whether use is or isn’t acceptable

Embrace it and help students understand how to use it appropriately

Students will increasingly use AI in their application and assessment processes. This is a good time for employers to set the tone on how and when use is appropriate. We believe that employers who embrace AI have the opportunity to influence its use to the benefit of both candidate and organisation.

As AI evolves and becomes more reliable, it will provide even more opportunities for early careers recruitment, with jobs and careers looking different thanks to its ability to automate and simplify.

This doesn’t mean the personal touch will disappear. The emphasis on human interactions will always be highly sought after in any recruitment process."

Keen to learn more about AI in early careers recruitment and network with other employers to hear their approach?

Come along to our breakfast briefing on 20th March, kindly hosted by AXA IM, to network with recruitment and talent experts from across investment management firms and find out the latest on Managing the use of AI in early careers applications. Georgia Greer, Head of Insights at ISE, will join us to share her expertise and the findings of ISE’s research. Please note this is for Investment20/20 and Investment Association members, and employers in the Investment Management sector.

What is your firms approach to candidate's use of AI in early talent applications?

Ban its use and be explicit about it
Stay neutral
Embrace it and help students understand how to use it appropriately
No formal policy on candidate use of AI