It’s no secret that generative artificial intelligence (AI) is revolutionising human capital management.

A recent Pew Research Center survey on AI and hiring workers has found that more than 80% of employers in the US are already using AI, although most participants are opposed to it making final hiring and firing decisions in the workplace.

That said, almost half (47%) believe it may do a better job at evaluating applicants than humans do.

While AI has enormous potential, it also has some shortcomings. It may help recruiters by automating repetitive tasks, such as sorting through job applications, but it may perpetuate human bias, or reject job applicants that are not SEO savvy.

“AI does not have unconscious bias, as humans do, and it may not take all factors into account since it also does not have an inherent sense of fairness either,” says Mehnaaz Bux, a partner at Webber Wentzel.

“For example, Amazon had to abandon a CV analysis algorithm that showed bias against female candidates. The recruiting engine was trained to recognise good applicants from CVs submitted over 10 years, and of course, the vast majority of these were men.”

AI hiring tools may also be screening out employees with disabilities.

Until these problems can be ironed out, we may not be able to trust AI to make fair decisions.

The limitations of AI

Although we’ve made a quantum leap in hiring since the days when job applicants responded to ads in the classified section of a newspaper, we can’t just hand recruitment over to the machines, says Lindiwe Sebesho, Managing Director Designate of Remchannel.

“AI is a valuable tool in the early stages of recruitment, but the interview and other job-fit assessments remain crucial in ensuring the right candidate is selected for the job,” she says. “During the interview, recruiters use human judgement to assess how well applicants fit the job requirements and the overall organisational culture.”

AI can’t (yet) assess whether a candidate would be a good cultural fit, or possesses the soft skills needed to manage complexity and get along with other team members.

The right fit is crucial since a “wrong hire” can be costly – around R3 million per employee, according to Annelize van Rensburg, a director at Talent Africa.

Seizing opportunities

Concerns about AI may overshadow its enormous potential, however.

Apart from streamlining the hiring process through screening assessments, chatbots and virtual assistants, AI can identify key skills and qualifications, which is especially valuable in science, technology, engineering and mathematics disciplines. Video interview tools can also assist by analysing a candidate's communication skills and emotional intelligence.

When it comes to remuneration, AI can make it easier for employers to make informed decisions about compensation, fair pay and other benefits.

“AI-enabled insights and trends can be used as a reference input for structuring remuneration packages that align with the employee’s level of job fit and needs within an organisation’s broader framework of fixed, performance-based remuneration and benefits,” says Sebesho.

The human in the loop

Although we’re increasingly called upon to provide tech-savvy solutions to recruitment challenges, it’s a no-brainer that AI can’t replace human judgment. In addition, human oversight is critical to ensure AI’s recommendations align with ethical and legal requirements.

Bux says existing legislation on anti-discrimination, data protection and the right to due process in the workplace need to be enforced when AI systems are in play. “Use of AI has to be overlaid with regulations applicable in any workplace,” she points out. “Whatever system an employer may be using, they are still the responsible party and shall bear the consequences of such system.”

Sebesho concludes: “The path forward demands a dynamic approach — one where technology and humanity coexist and where we leverage AI’s potential to create a workplace that is both efficient and empowered. The future of work is here, and it’s our collective responsibility to shape it into a force for good.”

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