3 Types of AI Recruiting Software for Staffing Agencies

| Ameya Deshmukh
Artificial Intelligence
types of AI recruiting software

It’s not easy being a buyer in the AI recruiting software market. The number of solutions, and the ways vendors like to describe them, seem to be endless. In this article, we’ll cover the 3 types of AI recruitment tools you can expect to come across in your search for creating a competitive advantage through AI recruiting technology.

Types of AI Recruiting Software

There are a few different ways to use AI recruiting software. You can use it to engage candidates and you can use it to gather data. In this article, you’ll learn about the different types of AI recruiting software available today to cover these 2 use cases.

  1. Basic recruiting chatbots
  2. Enhanced recruiting chatbots
  3. Conversational AI for recruiting

What Can Basic Recruiting Chatbots Do? 

One of the advantages of basic recruiting chatbots is that they’re simple. They are fairly easy to understand from a technology perspective. The experiences they create are simple too. Basic recruiting chatbots just present your forms over text message and interacting with them feels like filling out a form over a text message.

That’s exactly where they go wrong. The problem with basic recruiting chatbots is the experience they create doesn’t align with candidate expectations. When a candidate engages over text message they expect to have a conversation, they don’t expect to fill out a form. Using text messaging to fill out a form isn’t a good way to do so!

This disconnect and cold, robotic feel to the engagement causes basic recruiting chatbots to have high drop off rates. Candidates just don’t particularly like engaging with them. Still compared to the recruiting black hole, getting any sort of engagement is better.

A basic recruiting chatbot isn’t very engaging when compared to other forms of AI recruiting software. It also isn’t very good at collecting data. A basic recruiting chatbot uses multiple-choice and yes or no questions. That places a limit on what sort of information you can use a basic recruiting chatbot to collect.

What Can Enhanced Recruiting Chatbots Do? 

Enhanced recruiting chatbots aren’t much better than basic recruiting chatbots. Their main difference is that they have some NLP capabilities. NLP is short for natural language processing. It’s a technology that powers different types of AI recruiting software. Because basic recruiting chatbots don’t have NLP, I don’t really think it’s fair to include them in lists of AI recruiting software.

If you actually want to use artificial intelligence, at least use an enhanced recruitment chatbot. These types of chatbots will create a more human experience, that’s more engaging than basic chatbots but still misses the mark. Candidates can tell they’re engaging with a chatbot, and enhanced recruiting chatbots are prone to making mistakes with collecting candidate data.

You can’t expect enhanced recruiting chatbots to be accurate because they aren’t subject to a high degree of scrutiny in the NLP development and machine learning algorithms that power them. Enhanced recruiting chatbots can’t be trusted to accurately collect your candidate data and they aren’t able to surface it in a way that’s useable for your recruiting teams.

What’s the point of collecting data if your recruiting teams can’t make use of it? And if you’re going to choose an AI recruiting software with NLP why not go for a solution that has advanced NLP capabilities and machine learning models that you can actually trust?

What Can Conversational AI For Recruiting Do? 

Not all AI recruiting software solutions are alike. Most don’t have the sophistication that’s needed to handle conversational nuances that happen in conversations with candidates. This is why basic and enhanced recruiting chatbots don’t even try to handle conversational nuances!

Conversational AI is a type of AI recruitment chatbot/software that uses advanced NLP, guided machine learning, and delivers a seamless experience for candidates and recruiting teams. When candidates converse with a conversational AI, they often think they’re talking to an actual recruiter even though a CAI introduces itself as an automated recruiting assistant in the first message of the conversation.

The natural conversation that CAI creates builds trust in candidates and confidence in the hiring process. So, when a CAI passes a candidate on to your recruiting teams that candidate is 38% more likely to convert. CAI is more engaging than any other types of AI recruiting software. But it’s not just really engaging, it also is the best at gathering data for your recruiting teams.

Conversational AI uses a process called entity extraction to recognize when important pieces of data are shared by candidates in a conversation. The CAI then extracts that data, and places it in a PDF file that it attaches to the candidate profile directly in your ATS. A CAI also updates a candidate’s status in your ATS.

For an example of a CAI in action check out conversational AI for staffing agencies.

So your recruiting teams can easily filter for candidates who’ve completed prescreening and have been scheduled for interviews using the candidate status field. Before their interviews with the candidate, your recruiters can pull up the notes CAI has left for them about the candidate and create a seamless hiring experience. Your recruiters pick up exactly where the CAI left off.

CAI Is The Type Of AI Recruiting Software That Creates A Seamless Experience

Creating a seamless experience in your recruiting process is what helps you create a positive candidate experience. A positive candidate experience makes candidates 38% more likely to convert in the offer stage.

Furthermore, using conversational AI for recruiting has helped staffing agencies like yours 4x their placement rates and create 2.5x increases in overall funnel conversion. CAI has also helped staffing agencies to increase their placement speed, by reducing their time to interview by 79%.

When you are evaluating the different types of AI recruiting software available today ask yourself 3 questions.

  1. Is this the most engaging solution available?
  2. Is this the best solution available for extracting useable data?
  3. Will this create a seamless experience for my candidates and my recruiting teams?

Conversational AI for recruiting is better than even the best recruiting chatbots.

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