Conversational AI in Recruitment
Conversational AI in Recruitment
in Recruitment
Preface
The COVID-19 pandemic has truly transformed our lives - personally and
professionally. Post-pandemic, there has been a drastic change in the way
organizations and employees approach business processes. Digital
transformation has been the topmost priority for organizations wanting to
enhance their business proficiency. Equal emphasis has been levied on
enhancing candidate experience.
The great resignation and skilled labour shortage highlighted the changing
employee expectations. Today, candidates want a consumer-grade experience
at their workplace and expect the hire-to-retire journey to be digitally seamless
and efficient. The recruitment teams must leverage technology to personalize
communication and encourage deeper connection with the candidates.
HR Tech can boost efficiency by empowering candidates to effectively handle
tasks by themselves. Candidates also expect a multi-channel accessibility to get
that extra yard of comfort in connecting with their recruiters.
These expectations call for an automation solution that can ensure a smooth,
tech-driven and a time-bound hiring process. Enter, conversational AI!
CONTENTS
01 CONVERSATIONAL AI DEMYSTIFIED
Defining conversational AI
05
CONVERSATIONAL AI IN TALENT
ACQUISITION
13
SUCCESS STORIES OF GLOBAL
ORGANIZATIONS
UOB
McDonald’s
20 LOOKING AHEAD
Future of conversational AI
Conversational AI Demystified
Conversational AI is a human-centric
technology that automates communication
(text and audio) between humans and
machines. This self-closing association aims to
simplify repetitive tasks without compromising
“Many of the misperceptions
on the human touch. This application has
simplified various complicated hiring processes
around conversational AI stem from
with its widespread use cases in recruitment. the belief that it is simply a chatbot.
Chatbots provide value in giving
The most fascinating trait of conversational AI is real-time responses to candidates
its ability to provide a human-like interaction by which are canned text responses to
understanding language, speech, text and the basic questions. Conversational AI
context of a conversation. Smart conversational offers a more sophisticated and
AI remembers the context of the last
personalized solution to engage
conversation with a particular candidate and
completely mimics as if it was an interaction
candidates through multiple forms
with an actual recruiting assistant. It can of communication, which gets
understand any language, respond in the smarter through use. By referring
language of the candidate's choice, schedule to this technology as “chatbots,”
next steps and screen candidates effectively to companies miss the many use
help your business hire faster, save time, and cases for engaging talent and the
deliver world- class experiences — all of which numerous benefits beyond
are a competitive advantage in today’s market.
saving time.“
Conversational AI can deliver a 24*7
best-in- class candidate experience through
several touchpoints and totally revolutionize the Madeline Laurano
recruitment function by enhancing the moments Founder, Aptitude Research
that matter.
1. CONVERSATIONAL AI DEMYSTIFIED 01
Defining and designing the best user-experience; and
the Science of Technology like machine
conversational AI learning to make conversations better and
more effective with every interaction. This
melody of art and science ensures that even
Personable the implicit rules of conversation are followed.
Intent driven
Differences between
Understanding candidates’ intent makes it
easier to address their queries. With Natural
conversational AI
Language Processing, conversational AI can and traditional
accurately gauge a candidate's intent and
provide the most apt solution. This proves
recruiting techniques
handy especially when a candidate asks a
question. Instead of providing a set number
of choices to choose from, redirecting to a Better Efficiency
lengthy FAQs or only recognising a few
keywords, conversational AI will be able to Reduced human effort, time and cost
understand the intent of the questions and
Conversational AI eliminates time-consuming
give the appropriate answers. All the data
and repetitive tasks enabling recruiters and
collected from the knowledge base makes this
HR teams to spend more time with the
technology aware of user intent.
applicants to create a positive candidate
experience. By automating the interaction,
screening, and scheduling of candidates with
Application of Art and
real-time conversational assistive intelligence,
Science it reduces the time it takes to hire new
employees while optimizing key resources.
Conversational AI is a technology backed by Further, it can completely automate most
smart design. Two attributes stand strong at low-value recruitment tasks, initiating HR
the core of conversational AI - the ART of transformation and help HR focus on more
understanding the nature of any conversation business-critical operations.
1. CONVERSATIONAL AI DEMYSTIFIED 02
Event-based hiring After building the talent pool, the next critical
step is to focus on — and hire — the highest
Conversational AI technology can smoothly
quality people. Often, unconscious biases can
administer the entire hiring event by helping
hinder the hiring process and impact the
candidates register for the event, scheduling
quality of talent. Since conversational AI is
interviews and sending reminders. It can also
entirely programmable, it can aid in minimizing
quickly reach out to a pool of qualified
unconscious prejudices during hiring. The
candidates using inbound & outbound
model can be honed to eliminate patterns of
marketing techniques. HR teams can automate
potential biases based on factors such as
the hiring process and customize the
gender, race, religion, or even academic
communication to find the best-fit candidate
institutions to ensure hiring of the highest
using conversational AI for event-based hiring.
quality based on merit and skills alone.
Improved Candidate
Experience
Conversational AI gives candidates a better
experience which can be a significant
competitive advantage while reaching out to
top talent. Delivering a personalized candidate
experience helps you:
Establish an instant
connection with candidates.
Improved Conversion
Engage with them on the
Scalability & Quality of candidate medium of their choice - web,
search mobile, SMS, social platforms.
Conversational AI can act as a personal
recruiting assistant and guide each candidate
Addresses candidate queries
through the recruiting process. This helps in
efficiently in their languages.
reducing candidate churn and improving the
ROI for recruitment marketing investments.
It provides efficiency at scale, moving
Simplifies the
prospects through the hiring process quickly
hiring process.
and successfully.
1. CONVERSATIONAL AI DEMYSTIFIED 03
Text and Mobile first
recruitment experience
David Harden
Senior Vice President,
Client Succes - Paradox
1. CONVERSATIONAL AI DEMYSTIFIED 04
02
Conversational AI in
Talent Acquisition
US$ 4683
Talent Acquisition (TA) is a HR function that
benefits a great deal from personalization and
automation. TA teams are focused on recruiting,
tracking and interviewing job candidates, and
is the average cost per hire
onboarding and training new employees. as per the 2021 SHRM
Conversational AI can reduce human effort by Benchmarking: Talent
streamlining the hiring process. Moreover, it
also guarantees improved quality of hires.
Access Report.
However, the proliferation of conversational AI These alarming figures show that most
has unearthed the opportunity for businesses to companies lose out on 60% of the talent
deploy this technology to cater to candidates’ application pool because of their cumbersome
chat preferences. The technology behind hiring and application systems.
conversational AI is rapidly evolving and it will
only get more versatile and agile in handling Organizations must acknowledge the candidate
complex conversations. expectations of personalization and an easy
application process. By adopting conversational
Also, conversational AI is highly scalable. With AI, you can help candidates quickly find the
human representatives, businesses are limited right job for them while enabling them to
apply from anywhere, anytime.
Screen
Schedule
JOB SEARCH
Improving
Hiring Metrics
Improve candidate
Increase your experience from start
website’s impact to end
71%
organizations using coversational AI
The biggest benefit of conversational AI is that reported their candidates were
it streamlines the entire application process satisfied” or “very satisfied” with the
to make it easy and simple for candidates to experience. Zero negative response.
50%
of organizations said the most lines between professional and personal life
important benefit is the
caused by the shift to remote work, the
improved candidate experience.
prolonged social isolation, the intensity of
recruiting jobs, including potentially difficult
Candidates will always appreciate the ease of partnerships with hiring managers, and the
communication over a chat regarding career pressure the Great Rehire has put on Talent
opportunities at any organization. If they are Acquisition professionals can collectively lead
able to strike a conversation through messages to severe recruiter burnout.
from the career webpage, they can ask
questions and discover more information about Conversational AI can significantly reduce this
the company and the job profile. burnout. It can help recruiters by automating
Conversational AI will be able to understand administrative tasks so that they can focus on
their intent and provide relevant information, people instead of systems. This will also reduce
thus solving their problems and elevating the the undue burden and help them create a
candidate experience. better work-life balance. Conversational AI will
help recruiters improve the hiring process and
Once the candidate decides to apply, enhance candidate experience without having
conversational AI can easily provide guidance to struggle tirelessly with administrative work.
regarding the application procedure and
interviews and further assist throughout the
hiring and onboarding process. Providing
Speed up the Hiring
helpful resources like application guidelines,
interview tips, hiring criteria and onboarding
Process
requirements, will make candidates
aware of the entire process and help them
prepare better.
improvement in time-to-fill
Success Stories of
Global Organizations
BUSINESS NEEDS
Without automation, UOB's recruiting team was spending a tremendous amount of time and
effort on analyzing resumes, scheduling interviews and determining the right match for the
required roles.
The recruiting team at UOB started hunting for a new solution that would enhance the efficiency
of their day-to-day responsibilities. They aimed to -
01 02 03
Automate the initial Enable instant Integrate with
screening process scheduling existing tools.
to identify candidates of qualified SAP Success Factors
possessing relevant candidates after (ATS) and Pymetrics
experience and thorough (assessment) —to
meeting the screening to create a seamless
fundamental expedite the experience for
requirements for the hiring process. candidates
job role. and recruiters.
To enhance the efficiency of the recruitment process, the team also wanted to integrate a
conversational assistant. This would enable the team to save a significant amount of time if a
conversational assistant handled the initial steps such as screening, scheduling, and inviting
candidates to complete the assessment.
96%
candidates rated their
experience positive
Automatic Scheduling
Qualified candidates who passed a
certain requirement threshold were
automatically scheduled for an “We view Paradox as a partner
interview by Jonas via WhatsApp.
who can help us push the limits
of what’s possible. There are so
many great opportunities to
streamline the process and deliver
exceptional experiences that
candidates just won’t find anywhere
Complete the full application
else. We want to automate more
Upon completing the interview, and more tasks to free-up our
shortlisted candidates would receive recruiters and allow them to focus
an offer immediately and were invited
on more business-critical and
to complete the full application on
high-value work.”
Success Factors.
Jay Chan
Head of Talent Acquisition, UOB
BUSINESS CHALLENGE
A designated recruiter or a recruiting function is typically absent from restaurants, retail
establishments, & franchise-operated businesses. The absence of a recruiter posed a severe
challenge for McDonald’s hiring strategy. But this also presented an opportunity to identify effective
tools and technologies that could streamline the process. These tools could be offered for
mandatory use in corporate-owned restaurants and elective use in franchise owned restaurants.
01 02 03
High hiring volume Recruiterless hiring. Relying on
with over 1 million Restaurant managers multiple platforms
hourly employees don the hats of for hiring, making
annually in the recruiters and the entire process
U.S. alone. hiring managers in more complex.
addition to
restaurant operations.
BENEFITS
4
McHire has been adopted by 90%
of the franchises globally, despite
being optional for franchises to deploy.
A NON-PROFIT
HEALTHCARE ORGANIZATION
BUSINESS CHALLENGE
The Non-profit healthcare organization traditionally used career events to expedite the hiring for
a wide range of positions. However, they were forced to change the way they think and operate
during COVID-19 pandemic.
01 02 03
Engaging candidates Finding candidates Large scale hiring.
virtually. with the right intent.
HR teams were
Hiring managers had Being a non-profit, concerned about
trouble simulating an they were looking for largescale hiring
excellent candidate people that care within a short period
experience online about their community of time without
without hosting and are in it for the compromising the
career events. right reason. They had candidate experience.
to discuss candidates’
prior experiences from
across the table.
Looking Ahead
The global conversational AI market is expected to reach US$14 B by 2025 (growing at a CAGR of
22% during 2020-25). It is one of the highest patented domains in the past few years and by 2022,
70% of white-collar workers will interact regularly with conversational platforms as per Gartner.
Furthermore, the volume of interactions handled by conversational AI increased by as much as 250%
across multiple industries. Around 90% of companies mentioned faster complaint resolution and over
80% reported increased call volume processing using conversational AI solutions, according to a
recent survey. Hence, the future of conversational AI seems bright and quite promising.
5. LOOKING AHEAD 20
Implementing
conversational AI:
Ethical Dimensions TRANSPARENCY
The use of any kind of “black box” AI that
does not meet professional standards set
forth by international organizations like the
Today, ethical use of AI standards is one of the Organisation for Economic Co-Operation
and Development (OECD) must be avoided.
biggest prerequisites for global HR teams
looking to adopt any piece of HR Technology.
Below are some of the ethical dimensions that
we suggest to verify with the HR Tech vendor
before implementing conversational AI.
BIAS-FREE
There must be a strong mechanism to
evaluate and exclude biases and limit
scalability of existing biases in the talent
acquisition processes. The product/service
must ensure fair, measurable and legal hiring.
ROBUST, SECURE
AND SAFE
Data Privacy and Cybersecurity are critical.
AI systems in talent acquisition must be
robust, secure and safe throughout their entire
ACCOUNTABLE
There must be proper documentation of
accountability of each AI vendor for the
proper functioning of AI systems based on
their roles, context, and consistency with
best practices.
5. LOOKING AHEAD 21
Discover the potential
of conversational AI for
your organization
The digitalization wave has had a great Which use case are you planning to target?
influence on organizations across industries. An
increasing number of organizations are realizing How would you like candidates and employees
the importance of technology and embracing to perceive your employer brand?
new ways to incorporate smart solutions to
enhance their efficiency and business outcomes. What channels do candidates use to
Conversational AI is one such smart solution communicate with you?
that promises to transform the HR business
function. If you are looking to harness the true How can you use conversational AI to support
potential of technology and transform your your organization’s goals and objectives?
hiring and TA process, conversational AI
is your answer. How do you join existing channels to create a
personalized experience?
To discover the potential of conversational AI
for your organization, you need to answer How will you prioritize the different use cases of
a few questions - conversational AI?
What are your existing pain points to What are your plans for testing the new
understand the problem/s you are trying technology and proposition?
to solve?
What is the correct use case to prove value
Have you explored technologies that while minimizing risk?
complement or enhance your current
tech stack? How do you establish the knowledge base
and content needed to enhance conversational
Who are your key stakeholders? AI technology?
5. LOOKING AHEAD 22
What are the recruitment processes that need Do you have any broader use cases or
to be changed as part of the future state and geo-region expansion that could benefit from
which stakeholders will be impacted? the same technology & process model?
What’s the current effort and time spent on the What are your criteria for scaling up or down
various recruiter tasks that can be automated by
your project?
conversational AI?
ADOPTION &
SCALE UP PHASE
5. LOOKING AHEAD 23
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24
Launched in 2016, Paradox is building the world's leading conversational recruiting software to drive
automation with a human touch. Serving global clients with hiring needs across high-volume hourly and
high-skilled professional roles, Paradox's conversational assistant Olivia does the work talent teams don't
have time for — streamlining tasks like screening, interview scheduling, and more through fast, easy,
mobile-first interactions.
In just six years, the Scottsdale-based startup has earned the trust of the world's largest employers —
including Unilever, McDonald's, CVS Health, Lowe's, and General Motors — and won numerous awards,
including Human Resource Executive's Best HR Product of 2019 and 2021, and consecutive honors in 2020,
2021, and 2022 as one of Forbes Top Startup Employers. The company was recently ranked the fastest
growing company in HR Tech by the Deloitte Fast 500. To learn more about Paradox’s product, visit
www.paradox.ai.
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