Artificial intelligence (AI) can perform tasks quickly and efficiently. What once took people many hours to do can take seconds with the right AI prompt. However, with that speed and efficiency comes the risk of replicating not just good processes, but bad ones. AI doesn’t distinguish good from bad, so if you feed it a poorly worded prompt or ask it to use outdated data, it will do so without flinching. And that’s where many companies run into problems, especially when using AI to assist in the hiring process.
Many companies now use AI-enabled human resources platforms to review resumes during the hiring process. The AI tools scan resumes, looking for keyword phrases and other information that matches the job description. And, while you’d think that an AI platform eliminates bias, it can actually reinforce bias. Here are some of the pros and cons of using AI as part of your candidate screening process to get the most from its time-saving efficiency.
Pros and Cons of Using AI in the Accounting Hiring Process
There are certainly many positive aspects of using artificial intelligence in the hiring process, especially for accounting team members. AI systems can immediately scan resumes for vital credentials and criteria, such as specific educational credentials, certifications, and years of experience. It can flag inconsistencies, even subtle ones that human screeners might miss. It can even detect so-called “ghost” candidates or fraudulent applicants. All of these are good reasons to use AI as part of the recruiting process to screen resumes.
However, there are also drawbacks to using AI. Remember that artificial intelligence learns from historical data. Whatever data your HR team feeds into the AI system, it learns from and leverages it for future hiring recommendations. If past hiring decisions were biased, guess what? The AI will learn that bias too. And, if your previous hiring practices weren’t the best, and you had high turnover, the AI will learn the ‘wrong’ way to view candidates. It’s going to mirror what happened in the past, learn from your company’s track record, and use that information moving forward.
AI Makes Mistakes
One thing everyone is learning the hard way: AI can, and does, make mistakes. If you’ve ever used ChatGPT or another AI platform, you may notice in small print a warning that AI can and does make mistakes. The same holds for AI used in the hiring process for accounting firms.
AI models can incorrectly flag fraudulent resumes or mismatched resume and job description criteria. It can also miss great candidates because a resume doesn’t have the keywords or phrases it’s been programmed to look for in its algorithm.
Humans Should Review All AI Recommendations
The overall consensus is that people should always be part of the process when using AI in the workflow for hiring new accounting team members. Balancing automation with human insight and judgment is critical to achieving maximum efficiency with minimum bias or mistakes from AI.
Some best practices accounting teams can use when tapping into the power of AI as part of their hiring processes include:
- Review and audit the algorithm: Did you hire a company to build your AI model? Meet with them to learn more about how they build their model. Understand how the AI is making judgment calls and specifically, how the programmers are accounting for bias in the process.
- Clean your data: If the AI model is trained in past hiring practices, work with your HR team and the AI programmers to ensure the data being used to train the AI isn’t flawed.
- Don’t rely solely on AI as a gatekeeper: Think of AI like the college intern working for your HR department. Just as you would review the internet’s candidate recommendations to make sure they are recommending the right people, you should review the AI’s recommendations too.
AI has its place in many workflows throughout an accounting department, including helping with candidate screening. But hidden biases, poor data inputs, programming nuances, and mistakes can lead to missing great candidates among the applicants. To find great candidates, partner with your AI model, and use it as a starting point, not the end-all and be-all of the hiring process.
Welter Consulting
Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.
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