The increasing use of artificial intelligence in recruitment is reshaping hiring processes across the UK. While AI offers efficiency, concerns are growing over fairness, bias and the potential marginalisation of job seekers.
These issues were debated in a recent webinar, Smart Hiring or Backfiring: Employing AI in Recruitment, hosted by The DPO Centre. The discussion explored job seeker disenfranchisement, the possibility of a two-tier hiring system, regulatory challenges and the future role of recruiters in an AI-driven landscape.
AI-driven hiring systems are now widely used by UK employers, and experts predict that within a year, all mid to large companies will have integrated AI into their recruitment processes. David Smith, AI Sector Lead at The DPO Centre, said that AI is unavoidable, stating that even businesses not actively using AI are still influenced by platforms like LinkedIn, which embed AI into their recruitment processes.
As AI takes over many aspects of hiring, recruiters are under pressure to adapt. Richard Bradshaw of PeopleRE noted that recruiters risk being viewed in the same impersonal way as AI tools. He highlighted concerns from candidates who feel they are reduced to a keyword match rather than being assessed holistically. He suggested that personal engagement will be essential for recruiters to differentiate themselves from automated systems.
The Rise of a Two-Tier Recruitment System
One of the key concerns raised during the webinar was the potential for AI to create a two-tier recruitment system. Experts warned that top-tier talent may continue to receive a personalised hiring experience, while the majority of job seekers are processed by AI-driven systems. Smith cautioned that this could deepen the divide between executive-level recruitment and the wider job market, making it harder for many candidates to secure opportunities.
While AI is intended to improve hiring efficiency, concerns remain about its ability to make fair and unbiased decisions. Helen Armstrong, CEO of Silvercloud HR, said, “AI is never going to be able to assess cultural fit and it can’t understand gaps in CVs. For example, if someone has taken parental leave or taken time off to care for a dependent.”
This raises questions about AI’s ability to fairly evaluate candidates who do not fit standard hiring patterns.
Regulatory and Compliance Challenges
The rapid adoption of AI in hiring also brings regulatory challenges, particularly for businesses operating across borders. Smith highlighted that under the EU AI Act, UK companies hiring in the EU must conduct risk assessments for AI hiring tools or risk fines of up to €35 million or 7% of global revenue. He warned that further global regulation is likely to follow, making compliance a growing concern for businesses using AI in recruitment.
As AI becomes more embedded in hiring, job seekers, recruiters and HR professionals will need to adjust. The challenge will be balancing automation with human oversight to ensure recruitment remains fair, inclusive and effective.
