Artificial Intelligence-Based Hiring: An Exploratory Study of Hiring Market Reactions

With the development of technology, artificial intelligence (AI) is being used in multiple capacities in our society. In human resource management (HRM), AI-based hiring has recently been adopted and is rapidly diffusing among many firms around the world. Given that firms are facing many difficulties in hiring, the adoption of AI-based hiring could be an appealing alternative to the traditional hiring practices. However, our society does not have a good understanding of AI hiring, and the reactions of the labor market are largely unknown. In this study, we aimed to develop a better understanding of AI hiring through field investigations of job applicants, HRM professionals, and assessment center experts by collecting and analyzing both qualitative and quantitative data in South Korea. Our findings reveal many concerns regarding the use of AI hiring systems despite several advantages. A series of interviews with HRM experts indicated that the predictive validity of AI hiring needs improvement before it can be used more extensively. Additionally, our statistical analysis showed that job applicants who had experience with AI hiring had more concerns than applicants without such experience. However, the result of job applications did not affect the applicants’ attitudes toward AI hiring. Suggestions for employers and policy makers are given.