Dear Computer on My Desk, Which Candidate Fits Best? An Assessment of Candidates’ Perception of Assessment Quality When Using AI in Personnel Selection

Abstract

Recently, with the increase in technological capabilities and the need to reduce bias in candidate selection processes, artificial intelligence (AI)-based selection procedures have been on the rise. However, the literature indicates that candidate reactions to a selection process need to be considered by organizations that compete for employees. In this study, we investigate reactions to AI-based selection procedures in a three-dimensional vignette study among young adults in Germany. By investigating the effects of the dimensions of AI complexity, intangibility, and reliability on the perceived quality of assessment of potential candidates, we found that AI complexity and intangibility impact the perceived quality of assessment negatively when the candidates’ knowledge, strengths, and weaknesses should be assessed. We also found interactive relationships of all three dimensions for the assessment of motivation. In sum, results indicate that candidates are skeptical toward the assessment quality of AI-intense selection processes, especially if these assess complex assessment criteria such as personality or a job performance forecast. Hence, organizations need to be careful when implementing AI-based selection procedures. HR implications are made on the basis of these results to cope with negative candidate perceptions.