THE ROLE OF ARTIFICIAL INTELLIGENCE IN HR: A STUDY OF THE IMPACT OF AI-POWERED RECRUITMENT TOOLS ON HIRING DECISIONS

Abstract

This study investigates the impact of AI-powered recruitment tools on hiring decisions in Pakistan's corporate sector using a mixed-methods approach. The research surveyed 150 HR professionals across major Pakistani cities and conducted in-depth interviews with 25 senior HR managers, complemented by comparative analysis of pre-AI and post-AI hiring metrics from 12 organizations. Findings reveal that AI implementation in Pakistan's HR sector is in early to intermediate stages, with most organizations having implemented these tools within the past two years. The analysis demonstrates significant improvements in operational metrics, including a 36.6% reduction in time-to-hire and 25.3% reduction in cost-per-hire. While operational efficiency shows strong gains, quality and diversity benefits are more modest. The study identifies unique challenges in Pakistan's context, including preference for personal connections in hiring (76.6% significant impact), technical infrastructure limitations (68.6%), and language barriers (59.1%). Organizations predominantly apply AI to resume screening (65.0%) and adopt a strategic balance with human decision-making, particularly for culturally nuanced evaluations. The research provides valuable insights for HR practitioners, technology developers, and policymakers navigating AI implementation in culturally distinct recruitment landscapes.