Your AI hiring tool may be rejecting qualified candidates

Fast Company

21 hours ago

Like so many lines of business, HR departments are increasingly relying on generative artificial intelligence tools. According to Insight Global's '2025 AI in Hiring' report, 92% of hiring managers say they are using AI for screening résumés or prescreening interviews and more than half (57%) are using them for skills assessments.
However, even as more teams rely on AI, especially for screening early in the hiring process, the cost may be the very talent companies are seeking. A 2021 report by Harvard Business School and Accenture found that applicant tracking systems were screening out good candidates. According to the report, 88% of employers said that qualified, highly skilled candidates were vetted out of the process by their applicant tracking systems because they did not match the exact job description criteria. The percentage for middle-skills workers was even higher (94%). As candidates have a harder time finding jobs and companies still struggle to find great talent, that's a problem.
'I think that many companies have jumped the gun and have implemented some of these tools to help on the operations side, says Hope-Elizabeth Sonam, head of community at marketing firm We Are Rosie. But while recruiters and hiring managers have been looking for productivity improvements, they may not be taking enough time to 'make sure that the tools that they're using are creating a fair, inclusive, whole, human approach to how talent is being scrutinized in the process,' she says.
While candidate screening tools do offer help to overwhelmed HR teams, they also need thoughtful implementations—and a few safeguards—to ensure that they're serving up the most comprehensive list of talent available.
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