Department of Management Studies
APPLIED MANAGEMENT RESEARCH PROJECT Malaviya National Institute of
Technology Jaipur
Implications and
Challenges
Introduction
Recruitment - Recruitment process, a company can choose from among a pool of
interested candidates for a position or function, the best one to fill it.
AI in Recruitment - AI in recruitment streamlines processes, analyzes resumes, identifies suitable
candidates, automates communication, and enhances decision-making. It accelerates hiring,
reduces bias, and improves overall efficiency in talent acquisition.
Objective
How an artificial intelligence technologies can optimize and improve various aspects
of the recruitment process, including candidate sourcing, screening, and selection.
To study the concept of artificial intelligence (AI) in recruitment and its
implications. To study the challenges in adopting AI-based recruitment.
To ascertain whether companies are open to the adoption of AI tools for
recruitment practices
Research
Gap
AI in recruiting is a current topic, and research is now going on to assess the
advantages and disadvantages of using AI in recruitment and selection.
However, there is a knowledge gap in whether or not businesses are
employing AI in their hiring processes in India.
Literature Review
Though AI offers a wide range ofapplications in HRM,
Yuan Pan , Fabian Froese ,
20 21 Ni Liu , Yunyang Hu & Maolin
its complicated approach will require time to train
people and implement in real-world scenarios.
Ye
The AI recruitment process is transparent, fair,
20 21 Ayesha Javed, Juthika Kabir
and simple to use, with real-timeresponses.
Brishti
Recruitment agencies may now execute both a high volume and a
Ashwani Kumar Upadhyay
high touch strategy at the same time, resulting in a long-term
20 18 and Komal Khandelwal
engagement with prospects.
Since AI technology enables recruiters to align some unstructured candidate
Reija Oksanen bio- data, develop profiles into homogeneity, and discover and correlate skills
20 18 and abilities required for the business, AI technology has had a significant
impact on hiring process.
The role of AI in the recruitment process may be summarised as
20 18 Geetha R, Bhanu Sree Reddy follows: the combination of people and AI results in data
D maintenance, cost and time savings for enterprises, as well as
improved accuracy and access.
Methodology
Data Collection - The data collection method for this research is secondary. In addition to the literature
review, the qualitative data which is obtained from various research paper are used in this report.
Secondary data collection- All of the articles, in this case, were found using Google Scholar, Research
Gate. This literature evaluation was conducted using both forward and backward searches. The research
was guided by the research question. The inquiry began with a keyword search for "AI in Recruitment",
“Recruitment and AI”, “AI in HRM functions”, “challenges in adopting AI in recruitment”, and “AI-based
recruitment” which were closely relevant to the topic of the research. This produces a large number of
results, including some tangential search results unrelated to all the keywords searched : Artificial
Intelligence (AI), Recruitment, Human resource, Technology, Challenges, Implementation
Primary Data Collection – Interview with three HR Professional From different Industry . All the three
professionals were experience with more than 5 years in their industry. Captured their viewpoint on how AI is
useful in recruitment and how is it effecting the recruitment process.
FINDINGS AND ANALYSIS OF DATA
Major Finding from the interview of HR’s :
1. Start-up companies prefer traditional recruitment due to cost constraints and the need for candidates with
clearly demonstrated skills.
2. AI-based recruitment is seen as costly and requiring training, which doesn't align with start-ups' focus on
minimizing costs.
3. Start-ups typically hire in limited numbers and prioritize unique skill sets over mass recruitment.
4. Despite current limitations, start-ups view AI-assisted recruitment as a viable option for future mass hiring.
5. A renowned IT firm is in the evaluation phase of deploying AI for recruitment, indicating a growing interest
in AI technology in established companies.
CONCLUSION
• AI is increasingly common in HRM for hiring, offering benefits like better communication, larger
candidate pools, and improved outcomes.
• While major IT firms fully embrace AI, many organizations struggle with adoption due to
challenges in training staff and overcoming resistance to change.
Implication
• AI integration in HRM is delivering tangible benefits by reducing HR workloads through tasks like
resume screening and allowing professionals to focus on strategic planning.
• Chatbots, a product of AI, are enhancing applicant-company connections by providing prompt
responses during the application process, though challenges like organizational readiness and
training costs hinder widespread adoption.
Recommendation
• Organizations show a growing interest in adopting AI for HR, influenced by scalability, size, and future
outlook.
• Recommend beginner-level training programs to prepare employees for AI integration. Incentivize
employees to voluntarily learn about AI applications in HR, leveraging online resources to reduce training
costs.
Future
Recommendation
• Comparative studies across different geographical regions can offer insights
into AI adoption in recruitment, especially in areas where it's nascent or
unrecognized.
• Exploring why some regions, particularly developing countries, are slower in
embracing AI in recruitment can provide valuable understanding.
• Quantitative methodologies can analyze the impact of AI adoption on
company growth and profitability, prompting recruiters to consider its benefits
in candidate selection.
