Small business leaders are already evolving their leadership strategies to include generative AI, from internal communication to how they hire. Generative AI promises to boost efficiency and productivity, relieving administrative work and boosting efficiency.
But there is an unforeseen challenge: AI is also being used in the job market by business owners, hiring managers, and job candidates.
According to a report on CNBC, recent viral videos show job seekers using AI to alter their appearance. As in-person interviews are less common in the initial stages, this poses an interesting conflict: how much is too much, and how can AI be used effectively without turning off candidates?
The Rise of AI in Job Interviews
It’s not just candidates regurgitating answers through generative AI. In recent TikTok videos, it seems that some companies are rolling out initial interviews with an AI interviewer, replacing what would typically be a recruiter determining skills qualifications in that first round.
A recent CNBC report highlights the flip side, in which a deepfake applicant dubbed “Ivan X” nearly secured a job within a U.S. tech company before being flagged by anti-fraud software.
Read Our Blog: Dealing with Unemployment Fraud as a Business Owner
Why Small Businesses Are Vulnerable
A recent survey from Nationwide found that roughly one-quarter of small business owners have been targeted by scams that use generative AI. Of those targeted, most described the attacks as attempted fraud using email, voice, or even video impersonations.
As generative AI becomes the norm for day-to-day operations, small business owners must not only educate themselves but also find a balance between using these tools, protecting their business and potentially turning off candidates.
Business Owners Should Use AI Transparently
AI-powered hiring tools like resume screeners and note-taking software offer boosted efficiency. However, AI still has bias, and business owners must ensure that these tools are compliant with anti-discrimination laws (EEOC) and don’t create an unintended bias when filtering through candidates.
Don’t Rely on AI Without Oversight
Automated systems can effectively streamline operations, but they’re not infallible. Make sure a qualified hiring team member is involved in reviewing applications and anything AI is used for in the hiring process, especially before and during interviews.
Read Our Blog: Are You Making This Common Mistake as a Small Business Owner
Add Identity Verification to Your Hiring Process
Consider integrating simple but effective identity verification strategies, like these from Workable:
- Include detail-oriented follow-up questions
- Pay attention to assessments
- Check IDs during video interviews
- Use e-signatures
- Ask verification questions
- Monitor your candidates during interviews
- Take advantage of third-party resources like Checkr
Create an AI-Aware Culture with Your Hiring Team
Train and educate your team about evolving tactics. Interviewers should be encouraged to watch closely for off-sync lip movements, scripted answers that lack depth, or inconsistent tones/experiences during interview rounds.
Ensuring your team knows what to look for can help bring personal and true fits to your business.
At Richards Rodriguez & Skeith, our business law firm in Austin, Texas, can help you navigate how to use AI responsibly and compliant with hiring laws. Need help drafting an AI policy or updating your hiring practices? Contact our firm today.
