It seems to me companies are starting to cede authority to software. Take HireVue for instance. It recommends which candidates are right for a job based on videos of them answering questions.
Why would a company implement this?
I’m sure they’ll say it lowers our hiring costs.
How does it lower costs?
It speeds things up by making decisions for us.
There you have it, it lowers costs by making decisions. The problem is there isn’t a more important decision than who to hire. The people in a company determine everything! Companies using HireVue have basically told an AI software company that they know best about how to hire for an industry they aren’t part of!
As an investor, I would be weary of stock in any company I found using this technology. It basically say, “We don’t know what we’re doing. We can’t even pick good candidates!”
That brings me to a bigger point, in reality, companies say they are using this to be more efficient, in reality it’s to offload liability of hiring discrimination lawsuits. “It’s the algorithm!” We didn’t pick them. Take it up with HireVue.
AI software for hiring is a problem. There will be feedback loops. There will be people who AI initially picks for roles who then get experience that it then uses to pick for other better roles. Not nearly enough data is collected on what doing a good job means, so even the data going in is likely flawed. This isn’t a good use of an AI tool.