CEIPAL Study Concludes Artificial Intelligence is the Future of Recruitment

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82% of survey respondents believe AI is the #1 most transformative technical innovation in the staffing/recruiting industry

Artificial Intelligence offers a tremendous opportunity to improve the recruiting process. I am convinced AI will transform the recruiting industry and become the norm faster than anyone expects.

CEIPAL, a SaaS platform for the front and back-office business operations of staffing companies, recently conducted research on the state of the recruiting industry at CEIPAL Connect, a quarterly symposium for recruiting industry professionals.

CEIPAL surveyed 90% of event attendees, including decision makers at global staffing companies with annual revenues ranging from $20 million to $100 million USD. Respondents discussed the uses of artificial intelligence (AI), ways to source better candidates, and the importance of improving the candidate experience.

The majority of attendees at the event believe that AI is transforming—and will continue to transform—the staffing industry. An AI-enabled Applicant Tracking System (ATS) will automatically match and rank candidates; calculate technical and cultural fit; predict the chance of candidate acceptance and estimate expected tenure; and instantly “clone” ideal candidates by sourcing dozens more with near-identical profiles. The result, say industry experts, is a significantly shortened search process and a greatly improved candidate placement rate.

Survey respondents also highlighted additional benefits of AI in recruitment:

1. Human bias is inevitable in a human-driven selection process, despite recruiters’ own awareness and best efforts. 71% of respondents believe that AI will eliminate human bias in the candidate ranking process by automating initial ranking and using purely objective selection criteria.

2. The likelihood of a candidate being shortlisted by an employer is substantially higher if the recruiter submits the profile within hours of the posting. Consequently, recruiters are often moving too fast to sufficiently sell candidates on the opportunity. 84% of respondents believe Artificial Intelligence will improve closure rates by affording recruiters the time required to better engage candidates.

3. Gen Z and Millennials, whose preference for texting and aversion to phone conversations is well documented, comprise 68% of today’s workforce. 80% of attendees believe AI-powered chatbots will enhance the candidate experience by providing the text-based, self-serve experience they desire.

In summarizing the research findings, Sameer Penakalapati, founder and CEO of CEIPAL, said, “Artificial Intelligence offers a tremendous opportunity to improve the recruiting process. Judging by its rapid advancement in other industries, I am convinced AI will transform the recruiting industry and become the norm faster than anyone expects. Staffing companies must embrace AI today in order to remain relevant and competitive.”

The company is compiling full research results and expects to make a final report available on its website soon.

CEIPAL provides a SaaS platform that automates both the front- and back-office business operations of staffing companies. CEIPAL offers a complete workforce management platform including a fully integrated applicant tracking system (ATS) and human resource information system (HRIS). Founded in 2015, CEIPAL now serves over 1,000 customers and 12,000 recruiters globally. For more information visit ceipal.com.

For more information about CEIPAL or how the staffing industry is incorporating Artificial Intelligence for improved results, contact Subhash Potturi at (585)326-1312 or subhash.p (at) ceipal (dot) com.

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Subhash Potturi, VP - Sales & Strategy
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