Faced with economic limitations and the need to maximize efficiency, organizations analyse their resources and strategies to identify areas where technology can bring key advantages. Just like organizations, HR teams are turning to the use of advanced AI tools to increase efficiency, optimize costs, and improve productivity. One way AI tools are used in human resource management is the digitalization of the selection process.
How does HR use AI?
The potential of AI tools in HR is most evident in task automation processes. This allows recruiters to focus on strategic activities instead of routine tasks, such as building relationships with candidates, deeper assessment of their potential, and improving the efficiency of selection processes.
In 2025, artificial intelligence will continue to transform traditional HR processes, introducing new opportunities but also challenges. To enhance hiring efficiency and improve the candidate experience, it is crucial to follow trends and correctly apply new technologies.
AI in recruitment
Artificial intelligence and its advantages have significantly accelerated various stages of the hiring process. Its applications include candidate headhunting, automation through sequencing, resume evaluation, candidate ranking, and matching their skills with job requirements. Modern AI tools facilitate communication with candidates, schedule meetings, enable interview transcription and analysis, and can even help identify potential risks with candidates.
Human Capital Management (HCM) platforms are based on artificial intelligence algorithms. They are particularly useful in selection processes with a high number of applications, as they significantly speed up the identification of the most suitable candidates. However, there are also significant limitations in using such algorithms.
Key issues include the lack of human judgment in assessing soft skills, motivation, and candidate personality, as well as the potential for algorithmic bias. If the data used to train AI systems is biased towards gender, race, age, or other factors, the algorithms may replicate these same biases. Additionally, systems that rely on keywords often overlook qualified candidates who use different wording in their resumes.
How to overcome the challenges of artificial intelligence?
To ensure AI tools are as fair and reliable as possible, it is important to use diverse data sources when training algorithms, regularly evaluate and revise them, and ensure they do not favour certain demographic groups. Although these measures can reduce bias, the human factor remains crucial for making the most important hiring decisions. The human element is also key in candidate assessment processes. Psychological testing remains an important tool for evaluating how well a candidate will fit into corporate culture, which AI automation tools cannot assess.
It is also important to note that some AI technologies currently have limited applicability in the Croatian and regional markets, where employers face a chronic labour shortage—from low-skilled to highly skilled workers. In such conditions, the number of applications is often insufficient for the application of sophisticated AI models. Therefore, traditional recruitment methods and direct communication with candidates remain crucial in the local labour market.
Candidates use artificial intelligence too!
Another challenge in applying artificial intelligence in hiring is the increased number of job applications. Candidates are increasingly using AI tools to generate resumes and cover letters, tailoring them to specific job postings. With AI tools, candidates can precisely align their application documents with the keywords and requirements listed in job descriptions and required competencies, leading to an artificially increased number of high-quality applications.
Applying for a job today is easier and faster than ever before. Thanks to automation and AI technology, candidates can submit multiple applications shortly, increasing the workload for recruiters.
Companies need to develop strategies for actively attracting candidates
Due to the changes and challenges brought by AI technologies, recruiters and organizations are focusing on proactive recruitment and an active approach to candidates. It is no longer enough to wait for the best candidates to find job postings and apply—organizations today continuously develop strategies to actively seek and attract talent. An active approach to the job market and employer branding are the foundations on which organizations build the recognition of their workplaces.
This shift toward active recruitment applies to a wide range of positions, from administrative to executive and mid-level and senior positions. To find candidates who fit the job, recruiters use AI to search and analyse candidate data from various sources, such as professional networks and databases. This way, they identify talent before they even apply for open positions. As a result, artificial intelligence has become a tool that not only speeds up administrative processes but also transforms the hiring approach itself. Thanks to these advantages and the impact of AI technology, recruitment processes in the coming years will focus on a personalized and strategic approach to each candidate.
How Croatian companies use AI
The application of artificial intelligence in Croatian organizations is becoming increasingly common and creative. Data shows that last year, about 50% of companies used AI, most frequently in data analytics, chatbots, virtual assistants, and process automation. However, two-thirds of companies still do not have a developed plan or strategy for implementing artificial intelligence.
A systematic approach to artificial intelligence should include planning its use in alignment with the organization’s long-term goals, regular evaluation of algorithms, and the integration of the human factor in decision-making processes. With a strategic approach, Croatian organizations could use artificial intelligence not only to increase efficiency and financial savings but also to develop sustainable business practices that will ensure competitiveness in the global environment.
