The Impact of Artificial Intelligence in Recruitment on Recruitment Efficiency

Abstract

There is growing practitioner interest in the growing utilization of AI in the Human Resource Management. Nevertheless, there is scant empirical data regarding direct relationships between AI recruitment technologies and efficiency measures. This paper considers the role of AI in recruitment in terms of recruitment efficiency, the influence of AI sub-dimensions (AI-Based Resume Screening, AI-Powered Candidate Assessment, and Predictive Analytics) on important efficiency outcomes: time-to-hire, quality of hire, cost-per-hire, and recruiter productivity. This study was based on the Technology Acceptance Model (TAM) and Resource-Based View (RBV), and its methodology was a quantitative study with qualitative thematic analysis. Primary data were gathered through 14-item Likert scale questionnaire to 100 HR professionals, recruiters, and hiring managers in the Indian firms. Statistical tools such as descriptive statistics, Cronbachs Alpha, one-sample t-tests, Pearson correlation, simple and multiple linear regression, ANOVA, and independent samples t-tests were used. The two hypotheses were accepted. A one-sample t-test established that AI in the recruitment process has a positive effect on efficiency in general (DV mean = 3.219; t(99) = 2.900, p = 0.005). Simple linear regression established that AI-based resume screening is a strong predictor of time-to-hire (R 2 = 0.110, 0.464, p < 0.001). Multiple linear analysis showed that AI sub-dimensions can predict the efficiency of recruitment (R 2 = 0.410) with the most significant predictor being the Candidate Assessment ( 0.250). ANOVA found experience to be a moderator (p = 0.039). In qualitative analysis, the lack of human touch (22%), algorithmic bias (18%), and resume manipulation (15%), were noted as the main issues. The research approves that AI is highly effective in increasing the efficiency of recruitment in organisations located in India, but it is important to use AI responsibly and in a balanced way.