The use of AI in recruitment has surged, transforming the way organisations engage with talent, and how talent engages with them. However, AI's impact on the candidate experience requires careful attention.
Implementing AI tools can help streamline recruitment, but without a balanced approach, AI risks unintentionally reinforcing biases and creating barriers for diverse talent, as well as preventing candidates from building a real connection with an employer (and its people). Here's how HR leaders can use AI wisely to improve their candidate experience and support EDI throughout assessment, pre-boarding, onboarding, and beyond.
Recognise the new AI-enabled candidate
Today's graduates are entering the workforce with high levels of AI literacy. According to recent findings from an Opinium research report of 1,000 students which Arctic Shores commissioned, 59% of graduates actively use AI tools, such as ChatGPT, in their job searches, with this trend particularly pronounced among neurodiverse and ethnically diverse groups. Ignoring this shift risks leaving hiring practices disconnected from the candidates you're trying to reach. Recognising that AI tools are part of candidates' everyday lives allows HR teams to refine recruitment processes to resonate better with their target audiences.
The data from the same report also reveals that 88% of students and recent graduates describe themselves as proficient AI users, and adoption rates among neurodiverse students are higher than their neurotypical peers. Charting these trends can help HR teams understand and strategically engage with all talent (not just this AI-empowered group), ensuring their recruitment methods align with the expectations and needs of today's candidates.
Use AI as a supportive tool, not a replacement for humans
AI is an excellent tool for handling large application volumes and automating repetitive tasks, but it's essential to combine AI with human insight. Automating initial screenings can increase efficiency, but key decisions, particularly those evaluating soft skills, motivations, and cultural fit, should remain human-led.
This human-in-the-loop approach isn't just good practice, it's also the direction the EU AI Act is heading for recruitment AI, so building it in now means you're not scrambling to retrofit it later.
According to the ISE Student Recruitment Survey 2024, a quarter of employers reported redesigning their selection process to accommodate GenAI. This trend underscores the importance of blending AI efficiency with human insight, especially for EDI-sensitive recruitment, where empathy and nuance are key.
An effective AI-aware recruitment process balances automated tools with human interaction, creating a fair, engaging experience. Assessment designs that consider individual thinking styles and preferences can help reduce biases that traditional AI-based assessments might overlook, exactly the kind of risk management the EU AI Act expects from high-risk recruitment systems. For example, says Mari Milsom, Senior HR Consultant, use AI to screen for essential criteria, while reserving human-led assessments for areas that require subjective assessment, like motivation and cultural alignment.
Guide candidates on responsible AI use, and be transparent about your own
AI literacy and access vary, so providing candidates with guidance on ethical AI use is crucial. Robert Newry, Co-Founder of Arctic Shores, for example, suggests offering resources to help applicants understand where AI can enhance, but not replace, their efforts. This guidance can be particularly impactful for neurodiverse candidates, ensuring they feel confident and supported throughout the application process. Structured support in responsible AI usage not only reduces AI misuse but also ensures that all candidates, regardless of background, feel equipped to engage with AI in a way that complements their abilities.
It's worth being just as transparent in the other direction too, telling candidates plainly when and how AI is being used in your own process – a specific obligation the EU AI Act will place on employers using high-risk recruitment AI so it's worth building the habit now rather than waiting to be told to.
Prioritise engagement for a positive candidate experience
Candidate engagement is essential for creating a positive recruitment experience that keeps candidates invested in the process. At Eli, we've found that high engagement levels can improve candidate perception, increase offer acceptance, and foster long-term retention. According to the Qualtrics Employee Experience Trends Report 2024, the six-month mark is critical, with new hires experiencing the lowest levels of engagement, and therefore wellbeing, intent to stay, and inclusion during this period compared to colleagues who have a longer tenure. This finding highlights that engagement is not only vital during the recruitment stage but remains crucial in onboarding to set the foundation for a successful and inclusive employee experience.
Organisations that proactively track and enhance engagement throughout onboarding report stronger long-term outcomes. Eli Onboarding's client data indicates that organisations who actively track engagement during early onboarding report reductions in dropout rates and increased retention. For instance, 97% of new hires at Alvarez & Marsal, a global consultancy firm, who were engaged during onboarding through Eli's platform, felt well-prepared for their roles. By fostering early engagement, organisations increase the likelihood that new hires will stay and feel aligned with the company's culture.
Organisations who focused on driving engagement also saw reductions in ghosting and dropout rates, as well as higher productivity earlier in an employee's career. These findings underscore the critical role of engagement in driving both retention and job readiness during onboarding. Using AI to streamline and personalise pre-boarding can help maintain candidate interest and reduce first-day anxieties.
Start small, scale thoughtfully
Introducing AI into recruitment doesn't have to be overwhelming. Start with a pilot project that addresses a specific challenge, like automating pre-boarding engagement, and evaluate the impact on your candidate experience and EDI goals. A pilot-and-evaluate approach also gives you a natural way to keep monitoring impact over time, which fits the ongoing risk management the EU AI Act expects from high-risk AI systems too. Many organisations report increased engagement and retention rates when using a balanced approach that combines AI tools with personal touchpoints.
Where the law is heading
Recruitment AI, CV filtering, candidate ranking, evaluating candidates, is explicitly classed as high-risk under the EU AI Act. Those obligations were originally due to apply from 2 August 2026, but a political agreement in June 2026 (the AI Digital Omnibus) has pushed that back to 2 December 2027. So, the strict legal requirements aren't binding yet, but the direction is clear: human oversight of key decisions, transparency with candidates about AI use, and ongoing risk management aren't just good practice, they're what the law will require. Building them in now, rather than waiting, means you won't be starting from scratch when the deadline lands. Of course, get your own legal advice if you're worried about this.
Conclusion
To use AI in a way that enhances rather than harms the candidate experience, HR leaders need a balanced, measured approach. A recruitment process that combines AI-driven efficiency with human interaction and judgement not only supports diversity but helps attract and retain top talent effectively. By engaging with all candidates (not just emerging talent) and designing an AI-aware strategy that fosters both inclusion and engagement, TA and HR professionals can build a recruitment and pre-boarding and onboarding journey that delivers an inclusive experience without compromise.
FAQs
Does using AI in recruitment harm candidate experience?
It can, if it replaces human judgement entirely or leaves candidates without support or connections. Used well, it can streamline and automate lots of the time consuming things HR have to manage, freeing them up to spend more time on the thing AI can't replace - human interaction from you, your line managers, buddies and advocates.
Is AI in recruitment regulated under the EU AI Act?
Yes. Recruitment AI used for CV filtering, candidate ranking or evaluation is explicitly classed as high-risk. The strict obligations were due to apply from August 2026 but have been deferred to December 2027, though the direction of travel (human oversight, transparency, risk management) is already clear.
Which recruitment decisions should stay human-led?
Decisions evaluating soft skills, motivations and cultural fit should remain human-led, even where AI is used to handle high application volumes or screen for essential criteria.
How does candidate engagement affect onboarding success?
New hires typically show the lowest engagement, wellbeing and inclusion around the six-month mark. Organisations that actively track and support engagement from the start see stronger retention and readiness outcomes.
