KUALA LUMPUR (Feb 6): A number of Malaysian employers are hesitant to incorporate artificial intelligence (AI) into their recruitment processes, according to workforce solutions and recruitment services provider Hays Malaysia.

Despite the growing trend of using AI tools like ChatGPT and Bing among job seekers, with 51.7% of them leveraging these technologies for job applications, nearly 40% of employers are not planning to use AI for hiring in the coming year, the firm said in a statement on Tuesday.

The firm said the study, which gathered insights from 2,014 skilled professionals and 832 employers in Malaysia, found that AI's role in recruitment is still at an early stage.

Only 17% of employers currently use AI in a minimal capacity throughout their hiring process, while 29.8% are considering exploring its possibilities soon.

Employers who have adopted AI in recruitment primarily use it for resume screening and shortlisting (54.3%), candidate assessment and ranking (33.7%), and predictive analysis to determine candidate fit (31.4%).

Despite the potential benefits, there is a notable reluctance among employers to fully embrace AI, attributed to challenges such as the absence of a standardised regulatory framework, budget constraints and concerns over losing a personal touch in the hiring process.

Moreover, the survey highlights concerns over AI-powered recruitment tools’ potential biases.

While 83% of human resources personnel support using AI to aid their work, only 44% believe their organisations have sufficiently adopted AI to stay competitive in the future.

Meanwhile, 57.4% of respondents in Malaysia are wary of bias in AI-powered resume screening, indicating a need for addressing these issues before such technologies are widely adopted.

Hays Asia managing director Marc Burrage emphasised that organisations have an active role to play in preparing for the increased implementation of AI within recruitment.

"This involves closely monitoring the inherent biases with their vendors and considering ethical considerations being addressed at the Asean level.

“Companies could leverage such strategic international collaboration to jointly and continually develop the necessary frameworks to adopt at a local level.

“This is particularly crucial in fostering trust in inclusive hiring, especially considering the expectations of both staff and candidates to utilise AI in recruitment or job-seeking processes,” he said.