Companies adopting artificial intelligence to speed up recruitment may unintentionally be weakening their ability to compete for top talent, according to a major new study. Researchers from the Royal Docks School of Business and Law found that although AI can significantly improve the speed and efficiency of hiring, relying too heavily on automated systems could make organisations less appealing to highly skilled applicants. The findings highlight a growing challenge for employers seeking to balance technological efficiency with the human experience of recruitment.

The researchers describe this challenge as the “resourcing paradox”, in which the efficiency gained through AI may come at the cost of the human connections needed to attract and retain talented employees. As organisations increasingly use technology to streamline recruitment, the study suggests that removing too much personal interaction can create a hiring process that feels impersonal, distant or unfair. This could discourage strong candidates and ultimately undermine the benefits that AI is intended to provide.

The review analysed 79 previous studies and found that AI is particularly effective at handling routine recruitment tasks. Automated tools can rapidly screen CVs, match candidates with suitable vacancies and arrange interviews, saving recruiters considerable time and resources. However, the research also showed that applicants are more likely to trust AI-supported recruitment when employers clearly explain how the technology is being used and ensure that people remain involved in important hiring decisions.

According to the researchers, AI should therefore be used to support recruiters rather than replace them. Human recruiters remain important for assessing qualities that automated systems may struggle to evaluate, including empathy, future potential and cultural fit. Professor Kirk Chang, a co-author of the study, said organisations that succeed in attracting talent will not necessarily be those using the most AI, but those that effectively combine the technology’s speed with human judgement, transparency and empathy. Recruitment, he stressed, remains fundamentally about people, with technology working best when it improves human decision-making rather than replacing it.

Professor Toyin Adisa, another co-author, noted that recruitment is often an applicant’s first meaningful experience with an organisation. If the hiring process appears impersonal or unfair, employers could lose talented candidates before having the opportunity to speak with them directly. He argued that AI should help companies make better recruitment decisions instead of becoming a barrier between employers and the skilled people they need to remain competitive. The candidate experience, therefore, should remain a central consideration when organisations introduce automated hiring technologies.

The study concludes that employers need a balanced and responsible approach to AI in recruitment. Organisations should clearly communicate how automated systems are used, regularly audit their technologies for potential bias and maintain meaningful human oversight throughout key recruitment decisions. By combining AI’s ability to process information quickly with human understanding and judgement, employers may be better positioned to improve hiring efficiency without sacrificing candidate trust or personal connection. The findings suggest that the future of successful recruitment will depend not on replacing recruiters with technology, but on using AI carefully to strengthen the decisions and relationships that help organisations attract top talent.

More information: Oluwatimilehin Temitope Ologunoye et al, The resourcing paradox: a systematic review of efficiency and effectiveness in AI-powered recruiting, Employee Relations. DOI: 10.1108/ER-05-2025-0337

Journal information: Employee Relations Provided by University of East London