The recruitment landscape is being reshaped by generative AI (GenAI), presenting both exciting opportunities and significant challenges. While many Heads of Talent Acquisition (TA) recognize the potential of AI, only one in three feel fully prepared to harness its power. However, the ability to adapt – and adapt quickly – will be critical to thrive in this new AI-driven reality.

In our recent webinar, Mastering GenAI: Solutions for the Top 3 TA Challenges, we shared the top three AI challenges facing Talent Acquisition today, and the innovative ways leading TA teams have begun to address them.

1) The Executive Push for AI Integration

The Challenge: Although nearly 90% of executives ranked GenAI as a top-three tech priority for 2024, two-thirds said they were ambivalent or dissatisfied with their organization’s progress on AI. So, if TA leaders haven’t already received the mandate to integrate GenAI from their C-suite, they will soon.

At the webinar, 60% of attendees identified integrating AI into workstreams as their most top-of-mind AI-related challenge despite continuing concerns about regulatory compliance, hefty implementation costs, and often low AI vendor reliability.

Solutions: Several companies are already leveraging AI to streamline their recruitment processes in interesting and innovative ways. These include:

1. Leveraging AI as an Administrative Tool: A major manufacturing firm has introduced internal AI chatbots to handle administrative tasks like locating SOPs and generating job descriptions, allowing recruiters to focus more on strategic activities.
2. Using AI to Integrate Tech Stacks: A leading asset management firm is implementing Microsoft Copilot as a universal overlay that integrates with their entire tech stack. This allows them to generate job descriptions based on previous high performers in the role, alert recruiters of new requisitions and present a choice for internal or external search, and much more.

2) The Surge in Applications: A Double-Edged Sword

The Challenge: Between 2023 and 2024, TA teams reported a staggering 125% increase in average applications per job opening. With candidates now using AI tools to craft highly polished resumes, generate cover letters, and automate the application process, traditional vetting processes are overwhelmed. The result? An avalanche of applications that can be difficult to manage and evaluate effectively. And, the gradual loss of TA’s technological edge over talent.

Solutions: To handle the application avalanche, companies are adopting several strategic measures, including:

1. Commitment Verification: To ensure genuine interest, organizations are adding friction to the application process by removing easy-apply features and adding assessments as a pre-application requirement.
2. Controlled Intake Management: Deeper in the funnel, some TA teams are adding controlled pauses to inflow, such as releasing requisitions in waves.
3. Precision Candidate Filtering: Teams are identifying and prioritizing the most qualified applicants via techniques such as stack ranking, knockout criteria, and automated screening.

3) The War for AI Talent: Hiring the Skills of the Future

The Challenge: As companies continue to invest in new technology, employee and candidate skills are failing to keep pace. In fact, 87% of companies recognize that they have a skill gap now or expect one soon. To fill this gap, companies are scrambling to attract skilled professionals, causing a surge in demand for AI talent.

Solutions: TA has two primary options to address these gaps: build or buy talent. In other words, hire the talent you need or upskill the talent you have. Some innovative examples of each strategy are:

1. Build: In 2023, Accenture publicly committed to doubling their AI workforce by 2026 – investing $3 billion dollars to do so. To achieve this, Accenture mapped 30,000 employees to 12 AI-based roles and created specialized learning paths for each role.
2. Buy: A top tech company has committed to growing its AI workforce by recruiting the highest caliber of PhD talent globally. Their approach includes zeroing in on the top degree programs, building deep relationships with specific labs and advisors, and attending top academic conferences to speak directly with highly-skilled talent.

Learn more about how to hire for specific skills with our three-part guide to skills-based hiring. Starting with the Fundamentals of Skills-Based Hiring.

Looking Ahead: Embracing the AI Future

Generative AI comes with its challenges, but it’s also set to be a game-changer for Talent Acquisition. Staying ahead will require being adaptable, forward-thinking, and proactive with this new technology. Those who embrace AI and weave it into their recruiting strategies won’t just keep up — they’ll lead the pack. So, how are you ensuring you stay ahead of the curve?

Continue exploring how your peers are successfully navigating GenAI in Talent Acquisition. Check out the recording of our webinar, Mastering GenAI: Solutions for the Top 3 TA Challenges, for an in-depth look at practical strategies and innovative solutions.

We’re staying abreast of how GenAI will shape the future of Talent Acquisition – ensure you’re receiving our updates.