AI in Hiring: What Employers and Staffing Partners Should Be Paying Attention To

AI is becoming a bigger part of the hiring process, and it's happening faster than many organizations may realize.

From resume screening and candidate assessments to interview tools and applicant tracking systems, employers are finding new ways to use technology to support recruiting. These tools can help teams work more efficiently, manage large volumes of applicants, and spend more time focusing on the right candidates.

But as AI becomes more common in hiring, questions around transparency, fairness, and how these tools are used are getting more attention. At the same time, states and local jurisdictions across the country are introducing new laws and regulations that address AI in employment.

For employers and staffing partners, it's another area of the hiring landscape that's worth paying attention to.

AI Is Showing Up in More Places Than You Might Think

When people think about AI in recruiting, they may picture a tool that automatically screens resumes or ranks candidates. But AI can play a role in several parts of the hiring process.

It might help identify candidates with certain skills, support assessments, analyze interviews, or assist recruiters with sorting and reviewing applications. Some tools simply help with administrative tasks, while others can have a more direct influence on how candidates are evaluated.

And sometimes, these features are built into platforms organizations already use every day.

As more companies adopt these tools, it becomes increasingly important to understand where AI is being used and what role it plays in the hiring process. Just because a tool is part of an existing recruiting platform doesn't mean its impact on candidate evaluation should be overlooked.

The Rules Are Evolving, Too

As the use of AI in hiring grows, lawmakers and regulators are taking a closer look at how these technologies are used in employment decisions.

States and local jurisdictions, including California, Colorado, Connecticut, Illinois, New Jersey, Texas, and New York City, have introduced or updated laws and regulations addressing various aspects of AI in employment.

The challenge is that the rules aren't all the same. Different jurisdictions may take different approaches to issues such as discrimination, transparency, candidate notifications, and the use of automated decision-making tools.

The timing and details can also change as new requirements are introduced, guidance develops, and legal challenges arise.

For companies hiring across multiple states, keeping up with these developments can be difficult. What applies in one location may not apply in another, and the landscape will continue to evolve.

This isn't just a legal issue. It's also part of the broader conversation around how organizations are incorporating new technology into their hiring practices.

Where Staffing Partners Fit In

Employers aren't always the only ones involved in the recruiting process. Many rely on staffing agencies, recruitment process outsourcing (RPO) providers, managed service providers (MSPs), and other workforce partners to help find and evaluate candidates.

These partners may also use technology to support sourcing, screening, assessments, and other recruiting activities.

That raises an important question: Do employers have a clear understanding of the tools being used throughout their hiring process, including those used by their external partners?

The same question applies to staffing providers working with clients. As technology becomes more integrated into recruiting, communication between employers, staffing partners, and technology vendors becomes increasingly important.

Understanding which tools are being used, how they support candidate evaluation, and where responsibilities sit can help everyone involved have more informed conversations about the hiring process.

Finding the Right Balance Between Efficiency and Fairness

There's no question that AI offers opportunities to make recruiting more efficient. But speed and efficiency aren't the only things that matter when making decisions about people.

As organizations explore these tools, there are a few areas worth keeping in mind.

• Transparency: Understanding when and how AI is being used can help organizations communicate more clearly with candidates and other stakeholders.
• Fairness: Employers are paying closer attention to how candidates are evaluated and how automated tools fit into their overall hiring practices.
• Human involvement: Technology can support recruiting decisions, but organizations should consider the role recruiters and hiring managers continue to play in evaluating candidates.
• Vendor relationships: When external partners and technology providers are involved, communication about the tools being used becomes even more important.
• Staying informed: Both the technology and the rules surrounding its use are changing, making it worthwhile to keep an eye on industry developments.

These aren't necessarily new considerations for employers. Fairness, transparency, and good decision-making have always been important in recruiting. What's changing is how technology factors into those conversations.

What Comes Next?

AI will likely continue to play a growing role in how organizations find, evaluate, and hire talent. As new tools become available, employers will need to decide where they make sense, how they fit into existing processes, and what role they should play in hiring decisions.

At the same time, the regulatory landscape will continue to develop. Keeping up with industry changes and maintaining open communication with technology providers, staffing partners, and appropriate advisors can help organizations better understand the issues involved.

At Marchon Partners, we work with organizations on staffing, RPO, managed workforce, and payroll solutions. We recognize that changes in technology can affect not only how companies recruit, but also how they manage their broader workforce needs.

As AI becomes a more established part of recruiting, it's a topic worth continuing to discuss. Understanding how these tools are being used and staying aware of changes across the industry will be important for employers and staffing partners alike.

This article is intended for general informational purposes only and does not constitute legal advice. Laws and regulations vary by jurisdiction and may change. Organizations should consult qualified legal counsel regarding their specific circumstances.