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AI avatars are reshaping how companies interview job seekers, marking a high-tech shift in modern hiring. A recent report by customer service software company Tidio found that 85% of recruiters think AI is a useful tool that can replace some aspects of the hiring process.

As AI takes on human resource roles, questions emerge about its effectiveness in evaluating candidates’ potential—and what this shift may imply for hiring integrity. A recent post on Twitter (aka X) caused a stir as it showed an AI agent conducting an interview, highlighting how digital avatars are being utilized in the job market.

“AI, in general, still faces some fear, uncertainty, and doubt. However, a few visionaries have jumped onboard early and absolutely see the potential,” Brent Lupton, COO at AI agent developer Zeligate, told Decrypt. “Most companies certainly see the value, but are still cautiously exploring using AI. I anticipate that by 2025, AI will become more normalized in industry.”

Digital avatars that look and act like humans, powered by generative AI, are starting to find a market via companies like Zeligate, Sapia, Hour One, HeyGen, Paradox, and Synthesia. These digital personas are used in various capacities, including corporate presentations, customer service, and candidate screening.

Recently, Chipotle, which partnered with AI developer Paradox to create a “virtual team member” called Ava Cado, said conversational AI is expected to reduce the amount of time it takes to hire an employee for a restaurant position by 75%.

The proliferation of AI agents entered a new phase in late October when Microsoft announced the ability to create AI agents with Copilot Studio. “Think of agents as the new apps for an AI-powered world,” Microsoft said in a statement. “Every organization will have a constellation of agents—ranging from simple prompt-and-response to fully autonomous.”

However, Zeligate's Lupton cautioned against employers letting AI replace human resources experts entirely.

“Human resources require humans,” Lupton said, adding that AI agents are meant to “help people become better versions of themselves.”

However, while employers seek to leverage artificial intelligence in the hiring process, job seekers, on the other hand, are not convinced the technology will give them a fair shake. A 2023 Pew Research study showed that 41% of surveyed people were opposed to AI reviewing job applications, and 71% were opposed to AI making a final hiring decision.

Popular hiring and networking social media site LinkedIn has invested heavily in bringing artificial intelligence to its users, and job seekers are also leveraging AI to get hired, leading to what HR experts call an “AI battle between recruiters and candidates.”

“As AI helps recruiters source and screen candidates, the candidates are using AI to “power-up” their resumes,” talent market research analyst Josh Bersin wrote in a recent report. “One of our clients told me that almost all their job applicants now submit resumes that look eerily similar to job descriptions. Why? Job candidates are using AI also!”

How long before we see AI recruiters interviewing AI avatars for humans? Ask ChatGPT.

Edited by Andrew Hayward