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AI recruiting guide: Pros, pitfalls, tools

AI recruiting

AI’s popping up in just about every corner of life, and recruiting is no exception. As a recruiter, you might be wondering if you should be using it and what other teams are doing.

Whether you’re feeling curious or cautious, it helps to start with the basics.

AI recruiting means using artificial intelligence to automate and improve hiring tasks like sourcing, screening candidates, outreach, and interview coordination.

This guide breaks down how AI can help you, where it falls short, and how to use it to hire better, faster, and in a more human way. You’ll also read about ways it will reshape recruitment in the future so you can stay one step ahead.

How does AI-powered recruiting work?

AI recruiting software uses machine learning (ML) and natural language processing (NLP) to analyze large volumes of data and automate tasks that would normally eat up hours of your day. For example, you can use text recruiting software to quickly generate and send out personalized outreach messages without starting from scratch every time. 

Depending on the tool, you can also:

  • Draft job descriptions and hiring materials
  • Source potential candidates and scan resumes for relevant skills
  • Rank profiles based on how well they match job descriptions
  • Transcribe, summarize, and analyze candidate interviews or phone calls
  • Automate follow-ups and reminders to keep candidate engagement high throughout the hiring process

AI recruiting tools aren’t here to replace recruiters. They’re here to help you get through your to-do list faster so you can spend more time building relationships with the right candidates and less time buried in admin work.

The case for using AI for talent acquisition

Here’s how AI recruiting tools can make a real impact, from improving the candidate experience to helping you make better hiring decisions:

Automates repetitive tasks so you can focus on top candidates

What would you do with a few extra hours every week? Finally get around to that stack of promising resumes? Breathe a little easier between interviews? Take a real lunch break? 

AI recruiting software takes tasks you could automate off your hands — like sourcing candidates, screening resumes, scheduling interviews, and conducting call sentiment analysis — so you can focus on high-value work and make better hiring decisions. 

For example, OpenPhone’s AI can analyze phone calls and categorize them based on what was said. Like if a candidate sounds disengaged or focused mainly on compensation., 

While juggling back-to-back calls, OpenPhone’s AI call tagging automatically flags calls with custom tags like “low interest” or “salary-focused,” so you can easily filter and follow up with the right people — without relistening to every call.

OpenPhone's call tags for better AI recruiting

Plus, OpenPhone automatically records calls and generates transcripts and summaries. So whether you’re catching up on yesterday’s conversations or coaching a junior recruiter, you never have to dig through notes or rely on memory. Everything’s right there, organized, and ready to go.

OpenPhone's call transcripts and summaries

Improving the candidate experience

You could be offering the best role on the planet, but if the hiring process is clunky or leaves candidates in the dark, they’ll bounce. Fast. (And maybe leave you a parting gift in the form of a not-so-glowing Glassdoor review.)

AI recruiting tools improve the candidate experience by speeding up the screening process. This way, you can move candidates through the process faster and update them on next steps, whether it’s scheduling an interview, extending a job offer, or offering a polite pass, so they’re never left in the dark.

For example, you can integrate your ATS or CRM with a business phone system for recruiting, like OpenPhone, to automatically send text follow-ups, reminders, and personalized status updates that keep candidates in the loop. 

For example, if you use Greenhouse as your ATS, you can use the below Zap to set up automatic interview reminders. (Keep in mind that you’ll need a paid Zapier plan.)

💡 Not sure what to say to potential candidates? These recruiting text message examples can help you strike the right tone every time.

AI recruiting: Automated messages for better candidate communication

Expand and diversify the talent pool (if used correctly)

Using AI recruiting platforms during sourcing can help you break out of the usual bubbles and find talent you might’ve missed.

Tools like Juicebox (People GPT) use AI to source candidate profiles from a wider range of platforms and databases, not just LinkedIn or your go-to job board. 

Instead of focusing on exact job titles or keywords, you can describe your ideal candidate in natural language, and Juicebox will provide matches with the competencies to succeed, even if their background or industry doesn’t follow a conventional path.

That said, AI isn’t magic. Used incorrectly, it can narrow your funnel even more.

AI recruiting pitfalls to be aware of

AI hiring tools can make recruiting more efficient, but without proper oversight, they risk  worsening the experience and filtering out strong candidates without anyone realizing it.

Can reinforce biases

AI is only as good as the data it’s trained on. If that data reflects biases, like favoring candidates from certain schools, backgrounds, or demographics, the AI may learn to repeat those same patterns.

That’s why it’s critical for recruiters and hiring teams to regularly audit the decisions made by AI recruiting software. To ensure fair and compliant recruitment sourcing strategies and hiring practices, there should always be checks and balances in place — and a human designated to have the final say.

Can make the process feel robotic

When outreach feels impersonal or not respectful of their time, candidates can disengage. They ghost. They drop out. They might even leave a review that turns future candidates off before they ever hit “Apply.”

And the data proves it. BCG notes that “52% of respondents said that they would refuse an otherwise attractive offer if they had a strong negative experience during recruitment.”

In a thread on Reddit in r/RecruitingHell, one job seeker put it bluntly: “It just proves how little companies value employees and their time.” Another went even further: “I just deleted the text and reported the number as spam.”

Oof.

The best candidates aren’t just evaluating the role; they’re evaluating your process. If your process feels like it’s run entirely by robots, it sends the message that your company doesn’t value the human side of hiring.

Legal and compliance risks

AI hiring tools must comply with a growing number of legal requirements, from anti-discrimination laws to data privacy regulations. But here’s the catch: even if your recruiting software is built by a third-party vendor, your company is still responsible for the outcomes.

So, if an algorithm unintentionally filters out qualified candidates from underrepresented groups or mishandles sensitive applicant data, you could be looking at serious compliance issues (and, potentially, legal action).

That’s why it’s important not to blindly trust vendor claims about fairness or bias prevention. You should actively audit your AI recruiting software, understand how decisions are made, and make sure a human has final oversight.

Need a deep dive into how to stay compliant? This American Bar Association guide outlines the legal risks in detail and offers a checklist of laws to be aware of.

How will AI recruiting affect your role?

AI can’t replace recruiters. The job has too many high-stakes and qualitative aspects for it to be completely automated. That said, AI can evolve your role. Here’s how:

1. Recruiters will shift from administrative tasks to more strategic work

AI tools can handle the bulk of a recruiter’s repetitive tasks. 

Already, 70% of companies using AI or GenAI in HR said they are using it to do administrative tasks like scheduling interviews.

That means recruiters can take on more high-value work, like building relationships with top talent, collaborating more closely with hiring managers, and strengthening their employer brand.

In other words, less grunt work. More impact.

2. Recruiters who are skilled with AI and technology will have an edge

AI isn’t replacing recruiters, but it is redefining what makes a great one. The recruiters who stand out will be those who know how to work alongside AI: setting up and fine-tuning automations, connecting the right tools, and making sense of AI-generated insights.

By embracing small business productivity tools, these recruiters can manage more roles, move through pipelines faster, and make sharper, data-backed hiring decisions. In a shifting industry, that kind of adaptability makes them hard to compete with, and even harder to replace.

3. Recruiters will need stronger expertise in their niche

The recruiters who thrive in the AI era will be the ones who double down on what machines can’t do: understanding the ins and outs of their niche, reading between the lines of what hiring managers really want, and spotting a great culture add even when it’s not obvious on paper.

That’s where being a subject matter expert (SME) gives you an edge. You bring context that algorithms can’t.  You know what’s happening in the job market and understand what motivates candidates. You’ve built trust with hiring teams and know how to navigate subtle, unspoken dynamics.

And that human network you have is a goldmine no AI technology can replicate. In a world of automation, your expertise, knowledge, and connections are your advantage.

4. Teams will become leaner

One recruiter armed with the right tech stack could handle what used to require a small HR team. This could mean companies will reduce the number of recruiters they hire. And recruiters will be able to manage more roles and larger candidate pools.

For in-house teams, this reduction in staff might mean taking on broader responsibilities like strategic staffing. For agencies, it could look like fewer hands-on recruiters and a greater focus on business development and client advising.

5. Recruiters will need better ways to evaluate candidates

AI isn’t just for recruiters. Candidates are using it, too. They’re polishing resumes with ChatGPT, fine-tuning cover letters, and even prepping interview answers with the help of AI tools.

That means traditional screening methods (like scanning for keywords or reviewing templated answers) won’t cut it anymore.

To attract qualified candidates and assess their potential, recruiters will need to dig deeper. Think: structured interviews, real-world skill assessments, and behavioral questions designed to go beyond the surface. It’s the skills that candidates can’t fake or use AI to prepare for.

Some companies are already leaning into this shift, using video interviews or skills-based hiring to see how candidates think, communicate, and solve problems.

5 ways to use AI for recruiting

A growing lineup of tools can help at every stage of the hiring process, whether you’re sourcing candidates, screening applications, writing job posts, or streamlining communication.

Here’s a breakdown of popular AI recruiting tools by hiring stage:

  1. Sourcing: Tools like Juicebox (PeopleGPT), HireEZ, Moonhub, and Entelo can scan job boards, internal databases, and social media platforms like LinkedIn to identify and rank top candidates. Some, like PeopleGPT, even allow natural language searches (“Find me customer success managers with SaaS experience in Chicago”), making the process more intuitive.
  2. Screening and matching: Software like Textio, Attesto, and ATS platforms with built-in AI can match resumes to job descriptions and find the right candidates faster. But remember: always review these results critically, as AI screening isn’t perfect, and it can introduce bias if left unchecked.
  3. Chatbots: Conversational AI platforms like Sapia, Paradox, and XOR can handle common questions, schedule interviews, and walk candidates through the process 24/7. Just be wary of over-reliance. If candidates feel like they’re stuck in an endless loop of chatbot responses, you risk losing them.
  4. Writing tools: Generative AI tools like ChatGPT and Textio are great for drafting job descriptions, outreach messages, and interview questions. Textio is especially handy for writing inclusive job posts, as it flags potentially biased or exclusionary language in real time.
  5. AI-powered communication: A business phone system for recruiting like OpenPhone centralizes candidate conversations and uses AI call recording to generate call summaries and transcripts. It also automates reminders and follow-ups through SMS so you stay on top of candidate communication while still feeling human.

Stay ahead of the AI recruiting curve with OpenPhone

AI can take the pressure off of recruiters and help them do what they do best: connect with people. 

When used thoughtfully, AI can help you reduce manual work, improve the candidate experience, and make better, faster hiring decisions.

For example, with AI features like call tags, call summaries, and call transcripts, OpenPhone gives you the tools you need to keep conversations moving without burning out. 

But that’s just the start.

OpenPhone also helps recruiting teams work smarter with communication tools built for collaboration and candidate care:

  • Shared numbers let teams split responsibility for outreach while giving visibility into every candidate interaction.
  • Scheduled messaging makes it so candidates hear from you even when you’re off the clock.
  • Snippets (aka pre-written templates) let you quickly respond to FAQs.
  • Contact properties help you reference key info about each candidate, like preferred pronouns, interview notes, or role-specific context, right in the sidebar of your conversation with them.
  • Internal threads let you improve your follow-up strategies by tagging teammates, giving context on past interactions, and assigning follow-up tasks without leaving your phone system.
OpenPhone's internal threads

The result? A recruiting workflow that’s faster, friendlier, and built to scale.

Try OpenPhone for free today and see how it can help you stay ahead of the curve. 

FAQs

Will AI replace recruiters?

No. AI will take over some repetitive tasks, but human recruiters are still essential for building trust, evaluating soft skills, and making strategic, fair hiring decisions. That said, the recruiter role is evolving:

– Recruiters will shift from admin-heavy tasks to more strategic work, like employer branding and hiring strategy.

– Those who embrace AI tools will be more efficient and better positioned to succeed.

– Recruiters with deeper industry expertise and stronger connections will have an edge.

– Teams may get leaner, with AI enabling recruiters to manage more roles and take on broader responsibilities.

– Strong candidate evaluation skills will be key as more applicants use AI to prep and apply.

How can AI improve recruiting performance metrics?

AI can make your entire hiring process more data-driven, scalable, and measurable, giving you clear visibility into metrics like time-to-hire, source-of-hire, candidate drop-off points, and overall quality of hire.

By automating pre-screening, resume filtering, and scheduling, AI can significantly reduce time-to-hire, especially for roles with a high volume of job applicants. Recruiters can spend less time on manual tasks and, instead, build relationships with qualified candidates.

It also improves the quality of hire in two ways. First, AI matching tools identify better candidates earlier by analyzing patterns, skills, and context, not just scanning for keywords. Second, when recruiters spend less time on admin work and aren’t constantly running on empty, they’re able to think more clearly and make smarter, more intentional hiring decisions.

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