The industry-standard employee dropout rate, which was a huge 40%, has been reduced to 5% with the use of artificial intelligence, marking a considerable improvement in hiring efficiency and candidate experience, according to a study by human resource solutions provider InCruiter.
The study highlighted the role of AI in the hiring industry and was conducted with the objective of setting up new industry standards that improve efficiency, minimise bias, enhance candidate experiences and prioritise data security. It also aimed at empowering HR professionals with strategic tasks that drive organisational growth.
The study found that demand for technology has increased by 30% in the last year as a result of the intensely competitive job market, demonstrating the growing acceptance of AI-driven hiring solutions among organisations, which speed up the talent acquisition process.
AI has positively impacted the overall hiring process, the study found. It revealed that companies utilising AI reported a 25% increase in the diversity of their hires, showcasing the potential of AI to minimise unconscious bias and promote a more inclusive workforce.
Another significant finding of the study was the reduction in time-to-hire for organisations employing AI-driven solutions. On an average, organisations that used AI technology reduced their time-to-hire by 40%, allowing them to swiftly secure top talent and gain a competitive edge in the fast-paced job market.
The HR landscape is transforming with the integration of AI, and organisations are increasingly adopting AI-based solutions to streamline various HR processes. According to a recent report by Gartner, 81% of HR leaders have explored or implemented AI-based solutions to improve process efficiency within their organisations. The report suggests that generative AI solutions will likely become embedded in present and future HR technologies in the next one to three years.
Anil Agarwal, CEO and co-founder of InCruiter, said, “AI is a game-changer in the world of HR. Our commitment to leveraging AI for hiring is not just about efficiency; it's about creating a more equitable and engaging interview process.”
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