Hiring managers and recruiters often struggle to find qualified candidates quickly and efficiently, largely because resume screening is a time-consuming and draining process. Given this challenge, it’s no surprise that AI in resume screening has become popular. AI tools promise a faster, more streamlined candidate screening process for teams to hire faster without sacrificing quality.
While AI tools have introduced speed and automated resume screening, they also come with issues recruiters can’t ignore, like filtering out promising candidates and struggling with non-traditional resumes. Thankfully, this article explores how AI’s potential aligns with reality and what hiring teams must watch out for in the resume screening process.
How does AI in resume screening work?
AI-powered resume screening uses machine learning and natural language processing (NLP) to go beyond simple keyword matching. It helps recruiters assess a candidate’s relevant skills and work history by understanding context and patterns. This results in a more accurate match for the job requirements, improving the quality of hire.
When an applicant uploads their resume, the screening tools don’t only scan them, but follow a step-by-step process to sort, score, and rank candidates. By understanding the stages of AI resume screening, you can use these tools more effectively and speed up hiring.
The typical steps in this process include:
- Resume parsing: AI scans and extracts key information like work history, education, skills, and certification from resumes. This process turns unstructured text into structured data the system can analyze and compare.
- Profile matching: The tool compares a candidate’s data against the job description or an ideal candidate profile. It looks for relevant skills, experiences, and keywords, sometimes considering context, not just exact matches.
- Scoring and ranking: AI assigns scores to candidates based on how closely they align with the job requirements. With this ranking, recruiters can quickly identify potential candidates who best fit into an organization without reading every resume manually.
- Filtering and shortlisting: Candidates below a certain score or missing must-have criteria (like location, certifications, or required skills) are automatically filtered out. The highest-ranking candidates are often shortlisted for recruiter review.
AI resume screening tools generally fall into three categories: keyword, grammar, and statistical. Keyword tools scan for specific terms, grammar-based tools break down sentence structures for meaning, and statistical tools, the most advanced, analyze patterns, timelines, and context across a resume. Each type allows you to set custom criteria to better target qualified candidates.
Expectations of using AI tools in screening
AI tools have become a go-to solution for recruiters under pressure to hire faster and smarter. Today, 87% of organizations use AI at some point in the hiring process, and this comes with big expectations from talent teams, especially during the initial screening stage. As such, many hope that these tools will deliver key outcomes such as:
1. Improve the candidate shortlist
Resume screening is typically the first step in the traditional hiring process, used to filter candidates whose qualifications align with the job description. It helps create a shortlist that determines who advances to interviews, assessments, or further evaluation by recruiters.
However, a 2024 Novorésumé survey shows that the average time a hiring manager spends looking at a resume is seven seconds, highlighting the challenges in this process.
This limited time frame can lead to qualified candidates being overlooked, especially with so many applications. AI-powered resume screening tools promise a more consistent and efficient approach by applying pre-set and standard criteria across all resumes, reducing the likelihood of human bias and oversight. By automating the initial screening process, AI can help ensure that qualified candidates are not missed due to human error and time constraints.
2. Reduce unconscious bias
Another common expectation is that AI tools will help create a fairer hiring process by removing unconscious human bias. When used properly, AI can provide strong, bias-free data points that encourage diversity and eliminate bias-related hiring concerns. However, there is a risk of bias from human hiring in machine learning datasets.
That’s why it’s important to clean the data in the resume screening process,, removing names (ethnic bias), locations (geographic or socioeconomic bias), gender (gender bias), date of birth (age bias), and so on. This ensures that new applicants are considered based on their credentials, rather than other heuristics. AI tools native to an applicant tracking system can often clean data and parse resumes.
3. Scalability and efficient hiring
AI screening tools are designed to help recruiters manage high-volume hiring faster and more efficiently. Instead of manually reading every resume or conducting early-stage phone screens, AI can quickly scan, parse, and rank candidates based on skills and qualifications. This allows hiring teams to evaluate large applicant pools in days rather than weeks, which is a key advantage for companies with multiple open roles.
For smaller businesses especially, AI tools are expected to level the playing field against larger companies with more recruiting resources. With automated resume reviews and candidate prioritization, recruiters can focus on engaging with the most promising applicants, improving both speed and the overall quality of hire without increasing workload.
Reality check: Where AI stands in resume screening today
While AI has transformed how recruiters manage high volumes of resumes, it’s not without its challenges. However, rather than viewing these limitations as dealbreakers, they represent key opportunities for innovation and improvement, especially when combined with human judgment and skills-based hiring practices.
Here’s where the technology stands today, and how the industry is evolving.
Algorithmic bias: A fixable flaw
AI systems are only as good as the data they learn from, and when that data reflects human bias, the technology can unintentionally replicate those patterns. For example, research from Washington University shows that AI tools selected resumes with White-associated names 85% more often than those with Black-associated names. This has led to instances where qualified candidates from underrepresented groups, such as women or people of color, have been disadvantaged by automated screening.
Thankfully, bias in AI is a well-recognized challenge, so it’s actively being addressed. From using more diverse training data to implementing blind screening techniques like anonymized applications and algorithm audits, companies are reducing bias to create fairer hiring practices.
Beyond keywords: Moving toward skills recognition
Many traditional AI screening tools still rely heavily on keyword matching to filter candidates. As a result, they favor resumes that are optimized for Applicant Tracking Systems (ATS) over those that reflect real skills and experiences. This can lead to missed opportunities, especially for qualified candidates who describe their achievements in unique or unconventional ways.
However, skills-based hiring platforms like Vervoe push AI beyond keywords, using job simulations and assessments to evaluate candidates’ performance, not just resume jargon. In fact, nearly two-thirds of employers are already using skills-based hiring practices for entry-level roles, according to the National Association of Colleges and Employers (NACE). This shows a transition from keyword-focused AI tools toward evaluating candidates based on real skills.
Missing the human touch: Creating a more complete picture for AI in resume screening
AI resume screening tools are great at handling large amounts of data but struggle with qualities like passion, growth potential, and cultural fit. These are hard for AI to assess since they mainly focus on measurable skills and keywords. A survey by Insight Global found that 93% of hiring managers believe human involvement is still crucial, even with AI. This highlights the need for human judgment to assess soft skills and cultural fit that AI can’t capture.
The best recruitment strategies combine AI’s efficiency with human insight. While AI can screen resumes and conduct initial assessments, human recruiters are needed to evaluate subjective qualities. A study found that candidates who had AI-led interviews performed 53.12% better in human interviews than those selected through traditional methods. This shows that while AI identifies strong candidates, human oversight provides a broader picture of their abilities and fit.
Transparency challenges: Building trust through clarity
A common concern is that many AI systems are like ” black boxes”—decisions are made, but it’s unclear how, which frustrates both recruiters and candidates. This lack of clarity has led to a push for more transparent AI practices.
Consequently, organizations are focusing on making AI explainable, auditable, and open to feedback to build trust and accountability in hiring. Moreover, regulatory measures are being introduced to enforce transparency. For example, New York City’s Local Law 144 mandates that companies conduct annual bias audits of their AI hiring tools and publicly share the results to prevent discriminatory practices.
Why AI in resume screening isn’t enough: Skills are the new currency
Even with improvements, resumes and the AI that screens them still have limitations. Resumes only show what a candidate says they can do, not what they can actually do. However, with skills-based hiring, candidates can demonstrate their abilities through skills tests and job simulations.
Instead of guessing, you test, and instead of screening out, you invite in. The switch from resume screening alone, to hiring based on real potential provides key benefits and features that help you find the best candidates, including:
1. Hiring for potential, not just pedigree
AI resume screening typically focuses on past experience and job titles, which don’t always predict future success. Skills assessments, however, allow candidates to demonstrate their abilities in real-world situations, providing a more accurate view of their potential. This approach helps you uncover hidden talent that traditional methods might miss, finding candidates who can thrive in the role.
A great example of this is Vervoe’s AI assessments, which accurately predict candidate performance using three models. The first, being the “How Model,” tracks how candidates interact with the assessment, like time taken and navigation behavior. Secondly, the “What Model” analyzes the content of their responses, comparing them to millions of others to find relevant words and sentiments. Finally, the “Preference Model” lets employers train the AI to prioritize specific qualities, like correct spelling or positive sentiment, based on their preferences.
Here’s how these AI assessments make your job easy:
- Grading and ranking candidates automatically: The AI automatically reviews, grades, and ranks candidates based on how well they perform tasks specific to the role, saving you time and effort.
- Testing job-ready skills: With AI assessments, recruiters can test every applicant’s job-ready skills, ensuring they have the necessary abilities for the role.
- Reducing bias: Vervoe’s AI models remove personal identifying information to prevent bias during assessment.
- Providing personalized AI models: The Preference Model allows recruiters to tailor the AI to their needs and preferences, ensuring the assessment aligns with their company’s values.
- Providing quick grading: AI grading starts after candidate responses are submitted, with the How Model grading first, followed by the What Model.
2. Customized assessments for every role
Every job needs a unique set of skills, so creating assessments tailored to the specific requirements of each role is necessary. Whether you’re hiring for sales, software engineering, or customer support, you can design tests that focus on the skills needed for the job. This ensures you’re testing the right abilities and selecting the most qualified candidates without wasting time on irrelevant questions.
With customized assessments, Vervoe streamlines the hiring process, making it faster and more efficient. You can be sure that each candidate is evaluated on the skills that matter most for the role, helping you find the best fit without sifting through irrelevant results. With this approach, you’re guaranteed smarter hiring decisions while saving time and resources.
3. Consistent, scalable hiring experiences
Whether hiring five candidates or five hundred, consistency is necessary when choosing a candidate. Every candidate should undergo the same high-quality, fair assessment, providing credibility and trust across the hiring team. This scalability is crucial for organizations experiencing rapid growth or handling high volumes of applications.
Vervoe makes it easy to maintain fairness and quality, no matter how many candidates you’re hiring. All candidates receive the same high-quality assessment, ensuring consistency across the process.
Tips and tricks for using AI in resume screening
While AI can save recruiters time and effort, it does take some training and setup. Here are some tips for implementing artificial intelligence into your resume screening process.
1. Set the right criteria
Cleaning data is one way to implement blind hiring. Setting the AI screening tool to scan the resume for the right criteria is also important. Most AI resume screening tools use proxies, such as college degrees, to infer work ethic or productivity. But these proxies result in many well-qualified candidates being excluded from consideration.
That’s why the Harvard Business School states that “Workers are excluded from consideration due to variables such as the lack of a college degree or a gap in their employment history. While employers may infer that applicants who have those attributes are undeserving of consideration, applying an ‘affirmative’ logic would seem a more logical approach for seeking talent.”
Ultimately, you should look for ways to screen candidates in rather than screen them out.
2. Define the role of an AI resume screening tool
There’s a specific time and place to use a resume screening tool. Resume screening is only the first step in the hiring process and should be treated as such. The true value of a resume screening system is to ensure that spam applicants and those who are truly unqualified are eliminated as quickly as possible, allowing recruiters to focus on candidates who have a shot at joining the company.
As you consider using AI in screening, try to see it as a tool, rather than a complete solution. It can speed up screening and reduce manual effort, allowing hiring managers to spend more time interviewing and vetting candidates on a personal level.
3. Rethink screening beyond resumes
Some solutions go beyond simply narrowing down a pool of applicants based on their resumes. For example, Vervoe’s skills assessments can be sent out to prospective candidates to identify their current skills and produce a final ranking that suggests whether they would be a good fit for a role.
Rather than assuming skills based on previous experience listed on a resume, you can put applicants to the test and take the guesswork out of hiring.
Say goodbye to time-consuming resume screening
While resume screening has a history of being a tedious and inefficient first step in the hiring process, it doesn’t always have to be. For recruiters overwhelmed by manually sorting through hundreds of resumes, Vervoe’s AI-powered assessments offer the perfect solution. This means you quickly screen in qualified candidates and filter out those who aren’t qualified, saving you time and improving your hiring process.
With properly trained AI, you can reduce bias, highlight top talent, and ensure a smoother experience for candidates and recruiters. Don’t let resume screening limit your hiring process. Instead, enhance it by combining it with skills assessments and interviews for a more effective approach.
Need an extra push? Schedule a demo today to see how Vervoe can transform your hiring process.
