AI Washing in the Staffing Industry: Why It’s a Problem and What You Should Do

The technology industry is fond of buzzwords, and “artificial intelligence” is the buzzword du jour. In the few months since the introduction of ChatGPT, AI products have cropped up everywhere. Unfortunately, many companies are engaging in “AI washing” — claiming their products are AI-enabled when they really aren’t.

AI washing is similar to greenwashing, in which companies make false or misleading claims about the environmental sustainability of their products, services or operations. It seeks to increase sales by capitalizing on the latest industry hype. Ultimately, however, it reduces AI to just another buzzword and erodes confidence in the technology.

The recruiting industry is the latest sector to engage in AI washing, with many firms claiming that they’re using AI-driven technology. If a staffing company claims its processes are AI-enabled, it’s important to ask two questions:

Are you actually using AI or just an algorithm you’re calling AI?
If you are using AI, how useful is it if it’s being fed bad data?

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AI concept finger pointing to one selected candidate

Staffing Algorithms Are Not AI

Staffing companies have had algorithms for more than 20 years. They primarily use keyword analytics. If you say, “I need a security architect,” the algorithm might translate that into other keywords in the thought balloon around “security architect.” It might look for “cybersecurity” and “architecture,” or related job descriptions such as “security engineer.” It might also look for certifications such as Cisco Certified Internetworking Engineer (CCIE).

The algorithm then pulls together all the resumes it can find with those keywords. It ranks them according to the number of times the keywords are seen in the resume, the position of the keywords in the resume (i.e., is the skill current) and other criteria. It then spits out the resumes it thinks are most relevant to your job requirements.

This might seem like AI but it’s really no different than a Google search. The algorithms don’t do the one critical thing that AI needs to do to be “intelligent”: collect feedback. If the staffing site doesn’t give you the ability to rate the candidates it presents to you, it’s not AI. Even if you can give it a “pass/fail” score, it’s not really learning.

The Problem of ‘Garbage’ Data

That leads us to the second question. AI or not, how does the algorithm deal with all the bad information that’s out there in the recruiting industry? There are individuals who plug every keyword they can think of into their resumes. Some go so far as to hide text with keywords in the document. These resumes will always bubble to the top in the algorithms staffing companies use. Some staffing consultants even encourage candidates to pad their resumes like this so that they appear more qualified for a particular position. The job market is so tight that some staffing firms are resorting to these kinds of tactics to fill open jobs.

The adage “garbage in, garbage out” is just as true in AI as any other technology. So what if you have an AI tool searching through resumes? You can now shovel garbage faster. Now there’s less human involvement, so it’s less likely that somebody will catch the garbage.

Woman smiling and shaking hands with interviewer

What Sets DeSeMa Apart

DeSeMa does things very differently. We don’t rely on keyword searches or take resumes at face value. We don’t even put much stock in certifications, which are no longer indicative of a candidate’s capabilities. In fact, we use testing methodologies that are more rigorous than those used for certifications.

Our talent appraisal process involves extensive human interaction. Each of our consultants has more than a decade of direct experience in the technology they’re hiring for. They conduct in-depth technical interviews and spend a half day working with candidates to assess their capabilities. They will quickly filter out the garbage to identify candidates who can actually do the work.

We then test for soft skills and put candidates through mock working sessions to assess their ability to work on a team. The objective is to ensure that the candidate we refer not only has the right technical skills but is a good cultural fit.

The Talent Appraisal Report

We go through this process with every individual we place on a project, whether through managed services, talent on demand, staff augmentation or technical recruiting. If you’re looking for a full hire, we use information from organizations such as Salary.com to determine the candidate’s value in your marketplace. You will receive a report detailing the candidate’s skillset and an appropriate salary range so that you can hire with confidence.

Staffing company websites are advertising that they’re AI-enabled because that’s the hot thing to be in the market. However, most if not all are using the same old algorithms they always have. Even if they are truly AI-enabled, these algorithms are incapable of filtering the bad data that’s prevalent in the marketplace. The only sure way to get qualified candidates is to have skilled and experienced hiring consultants interact with them and conduct thorough testing. Let DeSeMa show you how our talent appraisal process will ensure you get the talent you need.