How will AI affect the early careers recruitment process?

Kerry McElroy, senior consultant at Gradconsult, identifies the challenges and opportunities that developments in AI technology present to graduate employers

AI, specifically Chat GPT, is certainly the topic du jour across all sectors - with its potential impact on the early careers recruitment process no exception. While some larger employers have been using generative AI to streamline their screening process for a number of years, the rapid advancement of ChatGPT means that, rather suddenly, AI has the potential to streamline the process for applicants too.

A recent Cibyl report suggested that as many as 7 in 10 students will use ChatGPT to support their job applications.1 As we head into the traditional recruitment period for graduates and interns with the first ChatGPT-literate applicant pool, what are the challenges for employers and how are they addressing these?

What's the issue?

The vulnerability of assessment methods with existing recruitment processes is a growing concern. According to stress testing carried out by the team at Neurosight, most methods used by recruitment teams to streamline their screening process, such as application questions, cover letters, online assessments and pre-recorded video interviews, are now highly vulnerable to being completed to a good standard by GPT-3.5, and an almost perfect one by use of GPT-4.2

Implications

The implications of this are that it will be almost impossible to distinguish the quality of one application from another. Taking into account the previously mentioned statistic, it could be the case that 7 in 10 applicants meet the requirement to progress in the recruitment process, with next stage often face-to-face or live video interview. This risks increased pressure on already stretched recruitment teams dealing with applications in their thousands.

To add to the challenge, we know that GPT-4 is a key differentiator. It can elevate an application from good (using GPT-3.5) to outstanding. The Neurosight stress test shows that it is much more capable than its predecessor with situational judgement, logical and numerical tests. Why is this a concern? Since the newer version sits behind a paywall, students using this tool are more likely to be from socially mobile groups. This adds another unwelcome barrier to recruiters who want to increase the diversity of their candidate pool.

Employer responses

Despite the changes afoot, many recruiters we hear from are not worried yet. Results from a poll we held at a recent meeting with graduate recruiters in Germany suggested that 65% of those in attendance were not concerned about the impact of ChatGPT on the 2024 applicant pool.

When asked about making changes to their process in response to AI advancement, only 22% of attendees had done or considered it, with 38% saying they were not changing anything for this year. Their preference is to let this year play out before making significant changes that could increase their budgets in an already tumultuous time for the sector.

The remaining 40% said they did not yet know enough about ChatGPT, indicating that for the some, the potential impact has not yet been fully considered.

Opportunities for change

It seems that both preparation and openness to candidates using AI in the recruitment process are key. The client view we hear most often is that incoming candidates will need to use AI in their work, so we fully expect they will use it in the recruitment process. Therefore, being clear with your applicant pool about how and where they should use it is important. Increasingly, employers should state during their recruitment process that the use of AI is encouraged, share tips on how best to use it ethically and fairly, and how they will assess this.

For some employers, this period of intense change brings much needed opportunity to support what has been for many, the longstanding business case to overhaul traditional recruitment processes in favour of assessments that review potential over experience. The tools less vulnerable at present are game-based tools or live video interviews with questions that focus on an individual's personal strengths and behaviours, so now seems a perfect time to bring those into a recruitment process. Of course, incorporating these assessments will bring added strain from a budget and resource perspective so is not an option for all employers.

AI is making most employers reflect on their recruitment processes, not just to find out whether they are fit for purpose in screening, but whether they are truly testing talent that has potential to succeed in a modern working world. This is a world that will certainly be taking full advantage of its benefits - so recruitment processes will need to embrace this too.

Notes

1. How are students using ChatGPT in their studies and the graduate recruitment process?, Cibyl, 2023.
2. Neurosight webinar - ChatGPT: How to audit your end-to-end hiring process for GPT-4
   vulnerabilities, YouTube, 2023.

Written by

Kerry McElroy

Senior consultant

Gradconsult