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AI In Recruitment: The Good, The Bad, The Ugly

AI In Recruitment: The Good, The Bad, The Ugly

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Ruehie Jaiya Karri
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July 5, 2023
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7 min read
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Artificial Intelligence (AI) has permeated virtually every industry, transforming operations and interactions. The tech recruitment sector is no exception, and AI’s influence shapes the hiring processes in revolutionary ways. From leveraging AI-powered chatbots for preliminary candidate screenings to deploying machine learning algorithms for efficient resume parsing, AI leaves an indelible mark on tech hiring practices.

Yet, amidst these promising advancements, we must acknowledge the other side of the coin: AI’s potential malpractices, including the likelihood of cheating on assessments, issues around data privacy, and the risk of bias against minority groups.

The dark side of AI in tech recruitment

Negative impact of AI

The introduction of AI in recruitment, while presenting significant opportunities, also brings with it certain drawbacks and vulnerabilities. Sophisticated technologies could enable candidates to cheat on assessments, misrepresent abilities and potential hiring mistakes. This could lead to hiring candidates with falsifying skills or qualifications, which can cause a series of negative effects like:

  • Reduced work quality: The work output might be sub-par if a candidate doesn’t genuinely possess the abilities they claimed to have.
  • Team disruptions: Other team members may have to pick up the slack, leading to resentment and decreased morale.
  • Rehiring costs: You might have to let go of such hires, resulting in additional costs for replacement.

Data privacy is another critical concern

Your company could be left exposed to significant risks if your AI recruiting software is not robust enough to protect sensitive employee information. The implications for an organization with insufficient data security could be severe such as:

  • Reputational damage: Breaches of sensitive employee data can damage your company’s reputation, making it harder to attract clients and talented employees in the future.
  • Legal consequences: Depending on the jurisdiction, you could face legal penalties, including hefty fines, for failing to protect sensitive data adequately.
  • Loss of trust: A data breach could undermine employee trust in your organization, leading to decreased morale and productivity.
  • Financial costs: Besides potential legal penalties, companies could also face direct financial losses from a data breach, including the costs of investigation, recovery, and measures to prevent future breaches.
  • Operational disruption: Depending on the extent of the breach, normal business operations could be disrupted, causing additional financial losses and damage to the organization’s reputation.

Let’s talk about the potential for bias in AI recruiting software

Perhaps the most critical issue of all is the potential for unconscious bias. The potential for bias in AI recruiting software stems from the fact that these systems learn from the data they are trained on. If the training data contains biases – for example, if it reflects a history of preferentially hiring individuals of a certain age, gender, or ethnicity – the AI system can learn and replicate these biases.

Even with unbiased data, if the AI’s algorithms are not designed to account for bias, they can inadvertently create it. For instance, a hiring algorithm that prioritizes candidates with more years of experience may inadvertently discriminate against younger candidates or those who have taken career breaks, such as for child-rearing or health reasons.

This replication and possible amplification of human prejudices can result in discriminatory hiring practices. If your organization’s AI-enabled hiring system is found to be biased, you could face legal action, fines, and penalties. Diversity is proven to enhance creativity, problem-solving, and decision-making. In contrast, bias in hiring can lead to a homogenous workforce, so its absence would likely result in a less innovative and less competitive organization.

Also read: What We Learnt From Target’s Diversity And Inclusion Strategy

When used correctly, AI in recruitment can take your hiring to the next level

How to use AI during hiring freeze

How do you evaluate the appropriateness of using AI in hiring for your organization? Here are some strategies for navigating the AI revolution in HR. These steps include building support for AI adoption, identifying HR functions that can be integrated with AI, avoiding potential pitfalls of AI use in HR, collaborating with IT leaders, and so on.

Despite certain challenges, AI can significantly enhance tech recruitment processes when used effectively. AI-based recruitment tools can automate many manual recruiting tasks, such as resume screening and interview scheduling, freeing up time for recruiters to focus on more complex tasks. Furthermore, AI can improve the candidate’s experience by providing quick responses and personalized communications. The outcome is a more efficient, candidate-friendly process, which could lead to higher-quality hires.

Let’s look at several transformational possibilities chatbots can bring to human capital management for candidates and hiring teams. This includes automation and simplifying various tasks across domains such as recruiting, onboarding, core HR, absence management, benefits, performance management, and employee self-service resulting in the following:

For recruiters:

  • Improved efficiency and productivity: Chatbots can handle routine tasks like responding to common inquiries or arranging interviews. Thereby, providing you with more time to concentrate on tasks of strategic importance.
  • Enhanced candidate experience: With their ability to provide immediate responses, chatbots can make the application process more engaging and user-friendly.
  • Data and insights: Chatbots can collect and analyze data from your interactions with candidates. And provide valuable insights into candidate preferences and behavior.
  • Improved compliance: By consistently following predefined rules and guidelines, chatbots can help ensure that hiring processes are fair and compliant with relevant laws and regulations.
  • Cost saving: By automating routine tasks for recruiters, chatbots can help reduce the labor costs associated with hiring.

Also read: 5 Steps To Create A Remote-First Candidate Experience In Recruitment

How FaceCode Can Help Improve Your Candidate Experience | AI in recruitment

For candidates:

Additionally, candidates can leverage these AI-powered chatbots in a dialog flow manner to carry out various tasks. These tasks include the following:

  • Personalized greetings: By using a candidate’s name and other personal information, chatbots can create a friendly, personalized experience.
  • Job search: They can help candidates search for jobs based on specific criteria.
  • Create a candidate profile: These AI-powered chatbots can guide candidates through the process of creating a profile. Thus, making it easier for them to apply for jobs.
  • Upload resume: Chatbots can instruct candidates on uploading their resume, eliminating potential confusion.
  • Apply for a job: They can streamline the application process, making it easier and faster for candidates to apply for jobs.
  • Check application status: Chatbots can provide real-time updates on a candidate’s application status.
  • Schedule interviews: They can match candidate and interviewer availability to schedule interviews, simplifying the process.

For hiring managers:

These can also be utilized by your tech hiring teams for various purposes, such as:

  • Create requisition: Chatbots can guide hiring managers through the process of creating a job requisition.
  • Create offers: They can assist in generating job offers, ensuring all necessary information is included.
  • Access requisition and offers: Using chatbots can provide hiring managers with easy access to job requisitions and offers.
  • Check on onboarding tasks: Chatbots can help track onboarding tasks, ensuring nothing is missed.

Other AI recruiting technologies can also enhance the hiring process for candidates and hiring teams in the following ways:

For candidates:

  1. Tailor-made resumes and cover letters using generative AI: Generative AI can help candidates create custom resumes and cover letters, increasing their chances of standing out.
  2. Simplifying the application process: AI-powered recruiting tools can simplify the application process, allowing candidates to apply for jobs with just a few clicks.
  3. Provide similar job recommendations: AI can analyze candidates’ skills, experiences, and preferences to recommend similar jobs they might be interested in.

For recruiters:

  • Find the best candidate: AI algorithms can analyze large amounts of data to help you identify the candidates most likely to succeed in a given role.
  • Extract key skills from candidate job applications: Save a significant amount of time and effort by using AI-based recruiting software to quickly analyze job applications to identify key skills, thereby, speeding up the screening process.
  • Take feedback from rejected candidates & share similar job recommendations: AI can collect feedback from rejected candidates for you to improve future hiring processes and recommend other suitable roles to the candidate.

These enhancements not only streamline the hiring process but also improve the quality of hires, reduce hiring biases, and improve the experience for everyone involved. The use of AI in hiring can indeed take it to the next level.

Where is AI in recruitment headed?

AI can dramatically reshape the recruitment landscape with the following key advancements:

1. Blockchain-based background verification:

Blockchain technology, renowned for its secure, transparent, and immutable nature, can revolutionize background checks. This process which can take anywhere from between a day to several weeks today for a single recruiter to do can be completed within a few clicks resulting in:

  • Streamlined screening process: Blockchain can store, manage, and share candidates’ credentials and work histories. Thereby speeding up the verification and screening process. This approach eliminates the need for manual background checks. And leads to freeing up a good amount of time for you to focus on more important tasks.
  • Enhanced trust and transparency: With blockchain, candidates, and employers can trust the validity of the information shared due to the nature of the technology. The cryptographic protection of blockchain ensures the data is tamper-proof, and decentralization provides transparency.
  • Improved data accuracy and reliability: Since the blockchain ledger is immutable, it enhances the accuracy and reliability of the data stored. This can minimize the risks associated with false information on candidates’ resumes.
  • Faster onboarding: A swift and reliable verification process means candidates can be onboarded more quickly. Thereby, improving the candidate experience and reducing the time-to-hire.
  • Expanded talent pool: With blockchain, it’s easier and quicker to verify the credentials of candidates globally, thereby widening the potential talent pool.

2. Immersive experiences using virtual reality (VR):

VR can provide immersive experiences that enhance various aspects of the tech recruitment process:

  • Interactive job previews: VR can allow potential candidates to virtually “experience” a day i.e., life at your company. This provides a more accurate and engaging job preview than traditional job descriptions.
  • Virtual interviews and assessments: You can use VR to conduct virtual interviews or assessments. You can also evaluate candidates in a more interactive and immersive setting. This can be particularly useful for roles that require specific spatial or technical skills.
  • Virtual onboarding programs: New hires can take a virtual tour of the office, meet their colleagues, and get acquainted with their tasks, all before their first day. This can significantly enhance the onboarding experience and help new hires feel more prepared.
  • Immersive learning experiences: VR can provide realistic, immersive learning experiences for job-specific training or to enhance soft skills. These could be used during the recruitment process or for ongoing employee development.

Also read: 6 Strategies To Enhance Candidate Engagement In Tech Hiring (+ 3 Unique Examples)

AI + Recruiters: It’s all about the balance!

To summarize, AI in recruitment is a double-edged sword, carrying both promise and potential problems. The key lies in how recruiters use this technology, leveraging its benefits while vigilantly managing its risks. AI isn’t likely to replace recruiters or HR teams in the near future. Instead, you should leverage this tool to positively impact the entire hiring lifecycle.

With the right balance and careful management, AI can streamline hiring processes. It can create better candidate experiences, and ultimately lead to better recruitment decisions. Recruiters should continually experiment with and explore generative AI. To devise creative solutions, resulting in more successful hiring and the perfect fit for every open role.

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Author
Ruehie Jaiya Karri
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July 5, 2023
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7 min read
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Vibe Coding: Shaping the Future of Software

A New Era of CodeVibe coding is a new method of using natural language prompts and AI tools to generate code. I have seen firsthand that this change makes software more accessible to everyone. In the past, being able to produce functional code was a strong advantage for developers. Today,...

A New Era of Code

Vibe coding is a new method of using natural language prompts and AI tools to generate code. I have seen firsthand that this change makes software more accessible to everyone. In the past, being able to produce functional code was a strong advantage for developers. Today, when code is produced quickly through AI, the true value lies in designing, refining, and optimizing systems. Our role now goes beyond writing code; we must also ensure that our systems remain efficient and reliable.

From Machine Language to Natural Language

I recall the early days when every line of code was written manually. We progressed from machine language to high-level programming, and now we are beginning to interact with our tools using natural language. This development does not only increase speed but also changes how we approach problem solving. Product managers can now create working demos in hours instead of weeks, and founders have a clearer way of pitching their ideas with functional prototypes. It is important for us to rethink our role as developers and focus on architecture and system design rather than simply on typing c

The Promise and the Pitfalls

I have experienced both sides of vibe coding. In cases where the goal was to build a quick prototype or a simple internal tool, AI-generated code provided impressive results. Teams have been able to test new ideas and validate concepts much faster. However, when it comes to more complex systems that require careful planning and attention to detail, the output from AI can be problematic. I have seen situations where AI produces large volumes of code that become difficult to manage without significant human intervention.

AI-powered coding tools like GitHub Copilot and AWS’s Q Developer have demonstrated significant productivity gains. For instance, at the National Australia Bank, it’s reported that half of the production code is generated by Q Developer, allowing developers to focus on higher-level problem-solving . Similarly, platforms like Lovable enable non-coders to build viable tech businesses using natural language prompts, contributing to a shift where AI-generated code reduces the need for large engineering teams. However, there are challenges. AI-generated code can sometimes be verbose or lack the architectural discipline required for complex systems. While AI can rapidly produce prototypes or simple utilities, building large-scale systems still necessitates experienced engineers to refine and optimize the code.​

The Economic Impact

The democratization of code generation is altering the economic landscape of software development. As AI tools become more prevalent, the value of average coding skills may diminish, potentially affecting salaries for entry-level positions. Conversely, developers who excel in system design, architecture, and optimization are likely to see increased demand and compensation.​
Seizing the Opportunity

Vibe coding is most beneficial in areas such as rapid prototyping and building simple applications or internal tools. It frees up valuable time that we can then invest in higher-level tasks such as system architecture, security, and user experience. When used in the right context, AI becomes a helpful partner that accelerates the development process without replacing the need for skilled engineers.

This is revolutionizing our craft, much like the shift from machine language to assembly to high-level languages did in the past. AI can churn out code at lightning speed, but remember, “Any fool can write code that a computer can understand. Good programmers write code that humans can understand.” Use AI for rapid prototyping, but it’s your expertise that transforms raw output into robust, scalable software. By honing our skills in design and architecture, we ensure our work remains impactful and enduring. Let’s continue to learn, adapt, and build software that stands the test of time.​

Ready to streamline your recruitment process? Get a free demo to explore cutting-edge solutions and resources for your hiring needs.

Guide to Conducting Successful System Design Interviews in 2025

What is Systems Design?Systems Design is an all encompassing term which encapsulates both frontend and backend components harmonized to define the overall architecture of a product.Designing robust and scalable systems requires a deep understanding of application, architecture and their underlying components like networks, data, interfaces and modules.Systems Design, in its...

What is Systems Design?

Systems Design is an all encompassing term which encapsulates both frontend and backend components harmonized to define the overall architecture of a product.

Designing robust and scalable systems requires a deep understanding of application, architecture and their underlying components like networks, data, interfaces and modules.

Systems Design, in its essence, is a blueprint of how software and applications should work to meet specific goals. The multi-dimensional nature of this discipline makes it open-ended – as there is no single one-size-fits-all solution to a system design problem.

What is a System Design Interview?

Conducting a System Design interview requires recruiters to take an unconventional approach and look beyond right or wrong answers. Recruiters should aim for evaluating a candidate’s ‘systemic thinking’ skills across three key aspects:

How they navigate technical complexity and navigate uncertainty
How they meet expectations of scale, security and speed
How they focus on the bigger picture without losing sight of details

This assessment of the end-to-end thought process and a holistic approach to problem-solving is what the interview should focus on.

What are some common topics for a System Design Interview

System design interview questions are free-form and exploratory in nature where there is no right or best answer to a specific problem statement. Here are some common questions:

How would you approach the design of a social media app or video app?

What are some ways to design a search engine or a ticketing system?

How would you design an API for a payment gateway?

What are some trade-offs and constraints you will consider while designing systems?

What is your rationale for taking a particular approach to problem solving?

Usually, interviewers base the questions depending on the organization, its goals, key competitors and a candidate’s experience level.

For senior roles, the questions tend to focus on assessing the computational thinking, decision making and reasoning ability of a candidate. For entry level job interviews, the questions are designed to test the hard skills required for building a system architecture.

The Difference between a System Design Interview and a Coding Interview

If a coding interview is like a map that takes you from point A to Z – a systems design interview is like a compass which gives you a sense of the right direction.

Here are three key difference between the two:

Coding challenges follow a linear interviewing experience i.e. candidates are given a problem and interaction with recruiters is limited. System design interviews are more lateral and conversational, requiring active participation from interviewers.

Coding interviews or challenges focus on evaluating the technical acumen of a candidate whereas systems design interviews are oriented to assess problem solving and interpersonal skills.

Coding interviews are based on a right/wrong approach with ideal answers to problem statements while a systems design interview focuses on assessing the thought process and the ability to reason from first principles.

How to Conduct an Effective System Design Interview

One common mistake recruiters make is that they approach a system design interview with the expectations and preparation of a typical coding interview.
Here is a four step framework technical recruiters can follow to ensure a seamless and productive interview experience:

Step 1: Understand the subject at hand

  • Develop an understanding of basics of system design and architecture
  • Familiarize yourself with commonly asked systems design interview questions
  • Read about system design case studies for popular applications
  • Structure the questions and problems by increasing magnitude of difficulty

Step 2: Prepare for the interview

  • Plan the extent of the topics and scope of discussion in advance
  • Clearly define the evaluation criteria and communicate expectations
  • Quantify constraints, inputs, boundaries and assumptions
  • Establish the broader context and a detailed scope of the exercise

Step 3: Stay actively involved

  • Ask follow-up questions to challenge a solution
  • Probe candidates to gauge real-time logical reasoning skills
  • Make it a conversation and take notes of important pointers and outcomes
  • Guide candidates with hints and suggestions to steer them in the right direction

Step 4: Be a collaborator

  • Encourage candidates to explore and consider alternative solutions
  • Work with the candidate to drill the problem into smaller tasks
  • Provide context and supporting details to help candidates stay on track
  • Ask follow-up questions to learn about the candidate’s experience

Technical recruiters and hiring managers should aim for providing an environment of positive reinforcement, actionable feedback and encouragement to candidates.

Evaluation Rubric for Candidates

Facilitate Successful System Design Interview Experiences with FaceCode

FaceCode, HackerEarth’s intuitive and secure platform, empowers recruiters to conduct system design interviews in a live coding environment with HD video chat.

FaceCode comes with an interactive diagram board which makes it easier for interviewers to assess the design thinking skills and conduct communication assessments using a built-in library of diagram based questions.

With FaceCode, you can combine your feedback points with AI-powered insights to generate accurate, data-driven assessment reports in a breeze. Plus, you can access interview recordings and transcripts anytime to recall and trace back the interview experience.

Learn how FaceCode can help you conduct system design interviews and boost your hiring efficiency.

How Candidates Use Technology to Cheat in Online Technical Assessments

Impact of Online Assessments in Technical Hiring In a digitally-native hiring landscape, online assessments have proven to be both a boon and a bane for recruiters and employers. The ease and...

Impact of Online Assessments in Technical Hiring


In a digitally-native hiring landscape, online assessments have proven to be both a boon and a bane for recruiters and employers.

The ease and efficiency of virtual interviews, take home programming tests and remote coding challenges is transformative. Around 82% of companies use pre-employment assessments as reliable indicators of a candidate's skills and potential.

Online skill assessment tests have been proven to streamline technical hiring and enable recruiters to significantly reduce the time and cost to identify and hire top talent.

In the realm of online assessments, remote assessments have transformed the hiring landscape, boosting the speed and efficiency of screening and evaluating talent. On the flip side, candidates have learned how to use creative methods and AI tools to cheat in tests.

As it turns out, technology that makes hiring easier for recruiters and managers - is also their Achilles' heel.

Cheating in Online Assessments is a High Stakes Problem



With the proliferation of AI in recruitment, the conversation around cheating has come to the forefront, putting recruiters and hiring managers in a bit of a flux.



According to research, nearly 30 to 50 percent of candidates cheat in online assessments for entry level jobs. Even 10% of senior candidates have been reportedly caught cheating.

The problem becomes twofold - if finding the right talent can be a competitive advantage, the consequences of hiring the wrong one can be equally damaging and counter-productive.

As per Forbes, a wrong hire can cost a company around 30% of an employee's salary - not to mention, loss of precious productive hours and morale disruption.

The question that arises is - "Can organizations continue to leverage AI-driven tools for online assessments without compromising on the integrity of their hiring process? "

This article will discuss the common methods candidates use to outsmart online assessments. We will also dive deep into actionable steps that you can take to prevent cheating while delivering a positive candidate experience.

Common Cheating Tactics and How You Can Combat Them


  1. Using ChatGPT and other AI tools to write code

    Copy-pasting code using AI-based platforms and online code generators is one of common cheat codes in candidates' books. For tackling technical assessments, candidates conveniently use readily available tools like ChatGPT and GitHub. Using these tools, candidates can easily generate solutions to solve common programming challenges such as:
    • Debugging code
    • Optimizing existing code
    • Writing problem-specific code from scratch
    Ways to prevent it
    • Enable full-screen mode
    • Disable copy-and-paste functionality
    • Restrict tab switching outside of code editors
    • Use AI to detect code that has been copied and pasted
  2. Enlist external help to complete the assessment


    Candidates often seek out someone else to take the assessment on their behalf. In many cases, they also use screen sharing and remote collaboration tools for real-time assistance.

    In extreme cases, some candidates might have an off-camera individual present in the same environment for help.

    Ways to prevent it
    • Verify a candidate using video authentication
    • Restrict test access from specific IP addresses
    • Use online proctoring by taking snapshots of the candidate periodically
    • Use a 360 degree environment scan to ensure no unauthorized individual is present
  3. Using multiple devices at the same time


    Candidates attempting to cheat often rely on secondary devices such as a computer, tablet, notebook or a mobile phone hidden from the line of sight of their webcam.

    By using multiple devices, candidates can look up information, search for solutions or simply augment their answers.

    Ways to prevent it
    • Track mouse exit count to detect irregularities
    • Detect when a new device or peripheral is connected
    • Use network monitoring and scanning to detect any smart devices in proximity
    • Conduct a virtual whiteboard interview to monitor movements and gestures
  4. Using remote desktop software and virtual machines


    Tech-savvy candidates go to great lengths to cheat. Using virtual machines, candidates can search for answers using a secondary OS while their primary OS is being monitored.

    Remote desktop software is another cheating technique which lets candidates give access to a third-person, allowing them to control their device.

    With remote desktops, candidates can screen share the test window and use external help.

    Ways to prevent it
    • Restrict access to virtual machines
    • AI-based proctoring for identifying malicious keystrokes
    • Use smart browsers to block candidates from using VMs

Future-proof Your Online Assessments With HackerEarth

HackerEarth's AI-powered online proctoring solution is a tested and proven way to outsmart cheating and take preventive measures at the right stage. With HackerEarth's Smart Browser, recruiters can mitigate the threat of cheating and ensure their online assessments are accurate and trustworthy.
  • Secure, sealed-off testing environment
  • AI-enabled live test monitoring
  • Enterprise-grade, industry leading compliance
  • Built-in features to track, detect and flag cheating attempts
Boost your hiring efficiency and conduct reliable online assessments confidently with HackerEarth's revolutionary Smart Browser.
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