The Role of AI in Recruitment: Introducing The Third Generation Of Hiring Systems

The Role of AI in Recruitment: Introducing The Third Generation Of Hiring Systems

Naveen Joshi 21/05/2021
The Role of AI in Recruitment: Introducing The Third Generation Of Hiring Systems

Third-generation hiring systems are set to remove the inefficiencies faced in the current candidate screening processes by intelligently understanding the context in candidate resumes by leveraging the capabilities of artificial intelligence.

Let’s take a walk down memory lane. The first-generation of hiring systems consisted of employers publishing job vacancies and candidates applying to them. The methods used to advertise the jobs were newspapers, televisions, and word of mouth. The second generation of hiring systems was almost similar to the first generation. Only the advertisement method had changed with the introduction of computers and the addition of recruiting agencies in between. Now, candidates had to upload their resumes in a particular format, and candidate screening was done by the middlemen using keywords. Only the keyword-optimized resumes would clear the hurdle. This is all set to change with a major leap in how candidates apply for jobs with the introduction of AI in recruitment with third-generation hiring systems.

Introducing The Third-Generation Hiring Systems

The third-generation hiring systems enable intelligent candidate searching made possible due to a combination of artificially intelligent searching and matching engines. It helps rank candidates using information retrieval, NLP, contextual intelligence, and data mining. This enables recruiters to find the best candidates even from a vast talent pool or if the candidate’s resumes are not keyword-optimized.

Comparing The Third-Generation Hiring Systems With Its Predecessors

To understand how the third generation of hiring systems is different from previous generations, we will have to look at three key metrics related to candidate hiring.


 The cost of hire is higher in the previous generation as compared to third-generation hiring systems as the efficiency of candidate screening and sourcing process significantly improved.

Time: With AI capabilities, the time required to fill a job vacancy is significantly less as most of the process is automated, and a large volume of data can be processed in a short period.

Quality: The quality of hire is improved significantly due to intelligent candidate sourcing, screening, and matching.

Understanding How Third-Generation Hiring Systems Work

Imagine a candidate not having an optimized resume. The resume doesn’t have the keywords related to the job description or having ambiguous keywords. For example, suppose there is a vacancy with the job title “editor,” which can have different meanings related to the job context. It can mean a video editor or an online article/blog editor. With traditional tools, it can so happen that a video editor’s CV might rank on top of a blog editor due to keyword use, even if the job vacancy is for the latter candidate. The deserving candidate might get screened out in the first phase itself. However, with AI, you can be assured that the right-fit candidates are screened, helping save time, money, and resources and also guaranteeing a high-quality hire. The AI algorithms can understand the context throughout the data in the resume to correctly identify an online blog editor, ensuring that recruiters are exposed to the right talent.

With the third-generation hiring systems, the common errors usually faced in the recruitment process are set to be eliminated. It will pave the way for a more streamlined, accurate, and efficient hiring process, which will benefit the candidates and organizations alike.

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Naveen Joshi

Tech Expert

Naveen is the Founder and CEO of Allerin, a software solutions provider that delivers innovative and agile solutions that enable to automate, inspire and impress. He is a seasoned professional with more than 20 years of experience, with extensive experience in customizing open source products for cost optimizations of large scale IT deployment. He is currently working on Internet of Things solutions with Big Data Analytics. Naveen completed his programming qualifications in various Indian institutes.

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