EP 011 - AI is likely to steal Recruiter Jobs

Show notes

Join us on this week's episode of the AI Boardroom, featuring special guest Mike Wolford, a seasoned expert in talent acquisition and AI applications in recruiting. Mike shares insights from his 20 years of experience in recruitment, discussing how AI can revolutionize industry practices by automating administrative tasks and personalizing communications. He dives into the potential of AI to enhance efficiency and effectiveness across various business sectors, particularly in recruitment. Discover tangible examples of AI applications and learn about Mike's innovative approaches to integrating AI into everyday business processes. Stay tuned for an enlightening discussion on the future of AI in recruiting and its broader implications for the industry.

Show transcript

00:00:00: Hello and welcome to this week's episode of the AI Boardroom.

00:00:05: Today with a special guest and to tell you more about it, Svetlana.

00:00:10: Go ahead.

00:00:11: Yeah.

00:00:11: Hi, guys.

00:00:12: Welcome to this episode.

00:00:14: Really excited to have another guest on our show.

00:00:17: Mike joins us to talk about some fun stuff in recruiting specifically.

00:00:22: I think we're really excited to actually bring you tangible examples for how AI

00:00:28: could be applied in specific parts of the industries across business verticals.

00:00:33: And Mike comes from a vast amount of background in recruiting, which he'll talk

00:00:38: about in a second.

00:00:39: And...

00:00:39: So we'll start at a high level, just talking about Mike, what he is, some

00:00:45: exciting things he's been doing in the field.

00:00:47: He's published a book, just a quick little preview that he'll talk about and some

00:00:51: tools.

00:00:52: But then we'll get his expertise opinion about where the industry is headed with

00:00:57: AI.

00:00:58: And yeah, there's going to be some fun things at the end.

00:01:01: So stick around.

00:01:02: And should we dive in?

00:01:03: Mike, do you want to jump in and give us an introduction on who you are and what

00:01:08: brought you into the recruiting in the first place.

00:01:11: Yeah, thank you so much for having me and thank you for that kind introduction.

00:01:15: My name is Mike Wolford.

00:01:16: I spent about 20 years in talent acquisition.

00:01:20: Like everybody, as a young child, I grew up dreaming of being a recruiter.

00:01:25: Like everybody else, I fell into the profession, but I really enjoyed it early

00:01:29: on.

00:01:30: I got to help people find a job and that wasn't necessarily the point of what we

00:01:34: did, but at the end of the day, my candidate had a better job, my client had

00:01:39: the person they needed, and I got to get paid.

00:01:41: And I was like, everybody wins here.

00:01:42: I feel really good about doing this for a living.

00:01:45: So I enjoyed the profession early on and, uh, I started to be a writer and

00:01:50: contributor probably about eight years into the profession.

00:01:53: I've spent the last 12 years writing for recruiting daily and source con, which are

00:01:58: two publications in my field.

00:02:01: Uh, and speaking on topics and recruiting, but not super intensely, like once or

00:02:06: twice a year, a couple of art, you know, maybe eight to 12 articles a month or a

00:02:10: year wasn't.

00:02:11: an intense focus of mine until I came into AI.

00:02:16: After I left Twitter, I got into analytics and artificial intelligence.

00:02:20: And I started to watch an expert, his name is Dr.

00:02:24: Alan Thompson, he's in Australia.

00:02:26: He was the head of Mensa International.

00:02:28: He is a PhD in researches area of expertise is human intelligence.

00:02:34: And about three years ago, he switched to artificial intelligence and I came across

00:02:38: his interviews with the AI.

00:02:40: And he was automating his interview with a AI avatar.

00:02:45: So it looked like he was actually having conversations with the AI and I thought it

00:02:49: was brilliant, but I also thought it was brilliant.

00:02:52: Like, wow, the AI understands and can respond like appropriately.

00:02:57: Um, and sometimes it was, you know, out of line and he would call it be like, that's

00:03:01: not true.

00:03:01: We're like, it was melancholic or overly negative.

00:03:05: And he would call that out.

00:03:06: And I thought that was really interesting too.

00:03:08: Like he wasn't trying to hype it.

00:03:09: He wasn't trying to downplay it.

00:03:11: He was just trying to show it for what it was.

00:03:14: And, but I, but I understood then that that was a aha moment for me.

00:03:17: Like it's conversational now.

00:03:19: Um, it may not be perfect, but it's conversational.

00:03:23: And by the time GPT four came out, I had interviewed it myself and done a similar

00:03:29: thing.

00:03:30: And it was competent in answering questions about the field that it had

00:03:36: never been trained on.

00:03:37: And so that's when I got the idea.

00:03:39: I was like, well, let's see how far I could push it.

00:03:41: And I tried to get the book and I've written two books before full disclosure.

00:03:46: I do have ADD.

00:03:47: It does take me a long time to get writing done.

00:03:50: And there's a lot of typos and it's a process.

00:03:53: My editors are champions.

00:03:54: They earn their pay.

00:03:55: But I wrote the book in just over two weeks from blank page to sending it to my

00:04:02: publisher and the editor.

00:04:05: came back like a day or two after submittal and was like, this is a waste of

00:04:09: my time.

00:04:10: Like the only thing is wrong is maybe I kept the prompts that I had to write the

00:04:14: book in the book itself.

00:04:15: So there's like typos and grammar mistakes in my prompting of what to tell the AI to

00:04:21: do.

00:04:21: But in the responses from the AI, there wasn't a single grammatical error.

00:04:25: There wasn't a typo, there wasn't a spelling mistake, nothing.

00:04:29: 74 ,000 words perfect, right?

00:04:31: Like that's impressive.

00:04:33: book about how to prompt the system, how to write?

00:04:37: So it was intentional that you've included the prompt, so it wasn't an oversight.

00:04:41: That was an aha moment for me too.

00:04:43: It was like, you know, what's really valuable is not the fact that I could do

00:04:47: it.

00:04:47: It's the fact that I could teach other people how to do it and then they could

00:04:50: take this and do their work with it.

00:04:53: That was the second, like that was the real value to me.

00:04:56: It wasn't just like, hey, I can get AI to write content.

00:04:59: a meta book, right?

00:05:00: Like, write about what you're writing, basically.

00:05:04: How do you use it to get all of these different?

00:05:07: And the thing is, I'm an old recruiter and I'm a sorcerer, and I have been writing

00:05:11: about spam.

00:05:11: Our profession is notorious for just spamming people with jobs, right?

00:05:16: Doesn't relevant.

00:05:17: And I'm like, please don't just use this to automate your spam.

00:05:20: Elevate, don't automate.

00:05:22: Because now, a lot of us come from different fields and professions where we

00:05:26: were very creative types.

00:05:28: And now you don't have to just sit there and write an email saying, oh, I love your

00:05:31: resume.

00:05:32: You could say,

00:05:32: Hey, write this like a country song and add some emojis.

00:05:35: When I'm talking to a software engineer, put some code in there that would make a

00:05:41: Python developer giggle, like an inside joke for them.

00:05:44: Use industry lingo to reach out to these people.

00:05:47: Like customization.

00:05:48: I remember when I was in college, my professor said something oddly profound.

00:05:52: It stuck with me.

00:05:52: He said, the 20th century was defined by mass production.

00:05:56: The 21st century will be defined by mass customization.

00:06:00: And like that is to me, what AI actually is, it's a tool that allows for personal

00:06:05: and mass customization.

00:06:06: That's part of why it has such an impact, but also for context.

00:06:11: And I know we're just getting started here, so I'm going to end with this, but

00:06:14: for context.

00:06:14: So we understand about the volume of what we're really talking about.

00:06:18: If you take everything in human history that was written in 2022, all the way back

00:06:22: to the very beginning of time in 2023.

00:06:26: the AI not only wrote more, it wrote 20 times more content than has ever been

00:06:32: created.

00:06:33: So this is the speed at which we are moving now.

00:06:37: And...

00:06:38: there's a lot in there.

00:06:40: Let me start first with something I was seeing this week.

00:06:47: I think it was released two weeks ago.

00:06:49: It was an AI coding interview with an avatar.

00:06:55: And first of all, the questions were hard.

00:06:58: I was like, I'm a senior developer.

00:07:01: I should be better at this.

00:07:04: But even any other senior developers I've seen on YouTube were like, okay, that's

00:07:09: really hard.

00:07:10: But a lot of questions also got like, they lacked context.

00:07:14: Like for example, like what would you do to assume the best possible database?

00:07:19: But there was no info what kind of data you actually have, like that kind of

00:07:25: stuff.

00:07:25: So how did you approach your solution?

00:07:29: Because you have like built basically,

00:07:32: effectively use systems for recruiting, right?

00:07:35: How did you approach the solution?

00:07:37: So this is to me somebody who's an engineer but not a practitioner building a

00:07:41: solution because it gave the programming but not the examples.

00:07:46: And an example would say what type of data set would qualify it.

00:07:50: And that's actually the missing key for most of the tools right now.

00:07:54: They're built by engineers who know how to set instructions to a machine but they've

00:07:59: never had the capability maybe or the necessity to also combine those

00:08:04: instructions with examples.

00:08:06: And it's the two in combination that actually end up giving you the

00:08:10: consistently good results.

00:08:12: When you have a system, it's really frustrating because I don't know if

00:08:16: anybody has read Pippi Longstockings or something like that before, but it's like

00:08:19: completely literal.

00:08:21: And so you do it and you're like, it did exactly what I said, but not exactly what

00:08:25: I wanted.

00:08:26: Do you know what I mean?

00:08:27: And it's, and that's the place where examples come in because that's where you

00:08:32: say, this is what I mean.

00:08:34: by it.

00:08:34: And when you have those two combined, that's the solution.

00:08:39: And I think what you're talking about just to bridge the gap for the audience is the

00:08:43: intent.

00:08:44: And so capturing intent behind user queries or any systems, honestly, I think

00:08:49: in AI, it's hard to do.

00:08:52: And then there's a lot of work previously done in natural language processing.

00:08:57: I have some experience building tools as well, where capturing intent is actually

00:09:03: really, really hard because you need contacts, you need to understand where the

00:09:06: person is navigating from.

00:09:08: you need common sense.

00:09:10: And you need common sense.

00:09:12: I think that's also, yeah.

00:09:14: No, no, yeah, that's an important part of the point, sorry.

00:09:18: Yeah.

00:09:19: No, I think it's an important point.

00:09:22: And I think it's understanding where they are in their journey, too.

00:09:26: You know, kind of navigating because if they're just kind of logging into a system

00:09:30: and they're trying to get a response about something, or there are three queries in,

00:09:35: or they're like deep into their workflow, they need, again, common sense to also

00:09:40: needs to be part of that.

00:09:42: But contextualization is really hard.

00:09:44: to implement.

00:09:45: And I think, again, as you mentioned, just kind of connecting with what Mike said,

00:09:49: examples are so crucial to provide context, but then also to provide common

00:09:54: sense as to like, okay, I know you're going to take my literal instructions and

00:09:58: follow them, but this is actually what my intent is and what my outcome needs to be

00:10:03: based on these examples.

00:10:04: And I love that you kind of are bringing those things into the conversation.

00:10:08: Thanks.

00:10:09: Yeah, that's a missing piece of the puzzle right now.

00:10:13: And this is the interesting thing.

00:10:15: They've kind of turned us loose and there's no instruction manual, right?

00:10:18: There's no like, here's what you can use it for and here's how you get it to do

00:10:22: like everything else we've, right, exactly.

00:10:25: one has.

00:10:27: We have approximations and we can get near to a consistent system that we are not

00:10:34: there, maybe will not get because we don't get what the AI is actually doing.

00:10:39: So.

00:10:39: And somebody explained it to me, like, what if dogs invented us to take care of

00:10:43: them?

00:10:44: Like, they would not understand what a job is.

00:10:48: They wouldn't understand what money is or how we get it to feed them.

00:10:51: But we, they just know that food shows up, right?

00:10:54: And that's kind of what AI is doing to us.

00:10:57: We really were like, to me, the other analogy I like is like, we're moving from

00:11:01: the digital stone age to the digital bronze age.

00:11:04: Mm -hmm.

00:11:05: our ancestors used fire.

00:11:07: They didn't totally understand it.

00:11:09: They didn't understand chemical reactions or energy or any of that, but they, they

00:11:12: used it.

00:11:13: And it's the same thing with us in AI.

00:11:15: Like we're, we're like digital fire.

00:11:17: Like AI is digital fire.

00:11:19: We don't understand it, but that doesn't mean we can't use it, but it's also

00:11:22: dangerous, right?

00:11:23: Fire is also dangerous.

00:11:24: We have a long history with fire for good and bad, right?

00:11:28: And AI is the same sort of thing, except this is the fire that can light itself.

00:11:33: Oh, that's, yeah.

00:11:34: press that writes the books.

00:11:36: It doesn't just print them.

00:11:37: think that's something for another discussion because I think we have still a

00:11:41: lot of things we can take from the AI recruiting space.

00:11:47: So I would love to reiterate my previous questions.

00:11:52: Where did you get started?

00:11:56: I think you're told about the professor you met.

00:12:01: But where did you actively in your day -to -day use started using AI?

00:12:06: to do active recruiting challenges.

00:12:10: How did you get there?

00:12:12: I started.

00:12:12: layer on the question that's like, cause a lot of the listeners would probably be

00:12:16: like, what problems exist in the recruiting space?

00:12:19: And then what problems were you trying to solve with AI?

00:12:22: I think those would actually also spark ideas as to, okay, I incur that in my day

00:12:27: to day where I've heard that happen.

00:12:29: Like that's an awesome use case.

00:12:30: So, and I'm really excited to hear about like the tool that you've developed

00:12:33: because you've showed it, you showcased it to us and we're like, oh,

00:12:37: not all the listeners would be able to see it, but if you can walk us through, again,

00:12:41: the problems that you were trying to solve and just kind of talk us through kind of

00:12:45: the reasoning and what you've come up with, because that, I think, people will

00:12:49: benefit from hearing it.

00:12:50: Thanks.

00:12:52: So for me, when I got into AI to start, I was afraid of it making decisions.

00:12:57: I didn't want to start there, but I wanted, I came across some research that

00:13:01: said, you know, 30 out of 40 hours of a recruiter's week is actually spent doing

00:13:05: administrative work.

00:13:06: And I was like, I believe that I was a recruiter.

00:13:08: I believe that.

00:13:09: And I started to look at how I could get AI to do that type of work for me.

00:13:14: Like, how could I get it to do the type of work that was eating up all my time with

00:13:18: administrative work?

00:13:20: So I could free up the time to do the value add work that I want, because if

00:13:23: you're a recruiter, one thing that you know is you get evaluated almost solely on

00:13:27: how many people you place.

00:13:29: And so all that administrative work is really just slowing you down between you

00:13:33: and your objective.

00:13:35: And that's your performance rating.

00:13:36: So it's really important if you can give back that time.

00:13:39: So I started looking about, you know, I've been trying to teach people to write

00:13:42: outbound emails for years to little effect.

00:13:47: Spam is still a problem.

00:13:49: But AI actually can be a solution here because one of the things that recruiters

00:13:55: are trying to do is they're trying to get enough people in enough time and they

00:13:58: don't have the mental time, the physical time to write 30 customized emails in a

00:14:03: row.

00:14:03: So in lieu of that, they send one email to a thousand people and hope it hits the

00:14:07: right people.

00:14:08: With AI, they can actually not only target better, but actually take the time to say,

00:14:13: hey, this person mentioned that they like.

00:14:16: Star Trek and their profile.

00:14:17: Let's mention that in the outreach email, right?

00:14:20: Like, and then that's all you have to do is give it the instruction and then the

00:14:24: creativity and the writing of the email, the AI takes over.

00:14:27: And instead of taking five minutes to write an email out and think about it and

00:14:31: how you want to do it, it's right there and it's done for you.

00:14:35: So to me, that was like, okay, this is a win, right?

00:14:37: Like I can actually get either more high quality out in the same time, or I can do

00:14:42: the same amount, get the same amount of results.

00:14:45: that I'm looking for in the end game, because I get a higher response rate from

00:14:48: custom outreach than I'm going to from spam.

00:14:51: And I could take that time difference and I can invest it in something else.

00:14:55: And to me, what AI is exciting about is from several perspectives.

00:15:01: One for me as a recruiter, I want that administrative work gone because the work

00:15:04: I like doing is being a counselor and an advisor and an advocate for my candidate.

00:15:10: And an advisor and a consultant to my business partner, my hiring partner,

00:15:14: that's the part of the job I like.

00:15:16: And so to me, that's the pitch of AI is the pitch is it can take away.

00:15:21: And what I was looking to do with it is to take away the low hanging fruit, the stuff

00:15:26: that's monotonous, the stuff that we have writing job descriptions, candidate

00:15:30: summaries, and, you know, trying to convince the hiring manager that this

00:15:33: person's a good fit for this job.

00:15:35: Right now I have the AI do it.

00:15:37: I take my interview notes, I take the resume, take the job description, and I

00:15:42: say, okay, based on this person's resume and my interview notes, create a table

00:15:46: with the must have requirements on one side, and then how the candidate's

00:15:50: experience lines up to it on the other.

00:15:52: And you're thinking, Mike, that's pretty obvious, that's not done today?

00:15:55: No, because as a recruiter, you'd have to do that 10 times a day.

00:15:58: And like, nobody has the time or the patience or the attention span to do 10 of

00:16:03: those.

00:16:03: But if you have an AI,

00:16:05: And it can do it, all you have to do is give it the instructions.

00:16:08: And then 10 seconds later, you get the output.

00:16:10: Anybody can do that.

00:16:12: And that's a better thing because another part of that process, most people aren't

00:16:16: privy to is the discussion between the recruiter and the hiring manager that goes

00:16:20: on.

00:16:20: The recruiter says, I like this candidate.

00:16:21: I want you to interview them.

00:16:22: The hiring manager says, no, they don't have the required skills.

00:16:25: Right.

00:16:25: And there's this back and forth.

00:16:27: Whereas it's a lot harder for the hiring manager to say no to an interview when the

00:16:32: recruiter says,

00:16:33: Here's all the requirements and here's how this candidate aligns to those

00:16:36: requirements.

00:16:37: This is exactly what you told me you needed and this person aligns.

00:16:41: Now it's much, much harder to say, no, I don't want to interview that person.

00:16:45: So it's better for the candidate, it's better for the recruiter, it's better for

00:16:48: everybody.

00:16:50: And I think, can I just summarize also, because I think we've talked previously

00:16:54: about the opportunity mapping.

00:16:56: I plan to do a little bit more maybe in the future episodes, deep dives maybe with

00:17:01: Edgar.

00:17:02: But you basically chose high benefit, low cost things that are repetitive in your

00:17:09: business.

00:17:10: If you tackle it, they're not as complex to actually implement, but they provide so

00:17:15: much value to the organization.

00:17:16: So the ROI is truly clear.

00:17:19: And I think what you're kind of even talking about just to bridge the gap to

00:17:24: the solution that you've built.

00:17:25: Cause if I'm not mistaken, you kind of did all of that kind of back and forth work

00:17:30: that currently happens between the conversations between the hiring manager,

00:17:35: the recruiter as to is this candidate even suited for this particular job?

00:17:41: And then you have basically a report that is customized or hyper -personalized

00:17:47: basically for the role.

00:17:48: and the candidate and their likelihood of being the right person for the job.

00:17:53: And so the decision is still a human decision, but I thought it was really

00:17:58: intriguing how you, and maybe you were going to go into that next, and I'm

00:18:02: stealing your thunder a little bit, but I thought it was really fascinating.

00:18:05: And I think I'm now connecting the dots and thank you for, yeah, I just want you

00:18:11: to kind of mention that it was really, really smart for you to pick these.

00:18:17: repetitive tasks and yeah, I think bridge the gap with a solution.

00:18:21: It sounds like you're able to roll out.

00:18:24: let me add to that.

00:18:26: I think one point I would love to point out is you chose an approach which is

00:18:33: deeply connected to language understanding.

00:18:37: And like a comparison is basically like language understanding, understand what

00:18:42: it's like.

00:18:42: Because you have a skillset on the one hand and you have a rhythm on the other

00:18:45: hand.

00:18:46: They are not like...

00:18:47: exactly aligned, like you won't find the same skills you need on the resume.

00:18:56: So I found it really good.

00:18:58: Like that's what I say, like if you have tasks that involve language understanding,

00:19:03: you're pretty much set to at least challenge it with AI.

00:19:08: And also the really practical approach, like really, really good work on that.

00:19:14: I really quite like it.

00:19:15: Yeah.

00:19:16: And that's where I, so I took the, what I learned from writing the book and what I

00:19:19: learned from building products commercially, like we built an AI analyst.

00:19:23: Um, and I put those together to create an agent for myself.

00:19:26: And so now that I'm speaking and doing presentations and I'm doing all this

00:19:30: writing, I now have my own AI agent who's programmed with my way of writing, given

00:19:36: examples of how I write and can now like, I wrote an article about three weeks ago

00:19:42: about spam.

00:19:44: Spam is dead, long live spam, right?

00:19:47: Where I was trying to get back to the community about like, hey, now you have

00:19:50: this new capability, please don't just make the problem worse.

00:19:53: And I believe please take like five seconds and then just gauge a little bit

00:19:58: of creativity.

00:19:59: And I think that's the other thing like I would ask across professions is don't just

00:20:03: take this as a chance to automate whatever repetitive task it is you have to do.

00:20:09: You're a creative human being.

00:20:11: You've been at...

00:20:12: whatever it is you're doing for a minute, you've probably thought there's a better

00:20:16: way to do this.

00:20:18: Now is your opportunity to try it, right?

00:20:21: At low risk to yourself.

00:20:23: And if it works, share it and be the hero, right?

00:20:27: Because this type of opportunity to disrupt so many different types of

00:20:31: business functions simultaneously is unlikely to come again.

00:20:35: So, you know, don't just use it and be like, oh, I can use it for A.

00:20:39: Be like, how can I make A even better?

00:20:41: better if I do it this way.

00:20:44: Because to your point, it understands.

00:20:46: If you give it examples and instructions, it'll get what you mean.

00:20:51: And I think I was just going to add, it takes skill even for me who uses AI on a

00:20:57: daily basis.

00:20:58: I use lots of these chatbot agents and other tools, but it takes skill to even

00:21:04: get started, but then also identify use cases for what AI could be suited for,

00:21:08: even these chat, chat GPT type of tools, because I even catch myself every now and

00:21:15: then and I'm like, oh, I need to like read through.

00:21:17: I will like, wait a minute.

00:21:19: Why am I doing this work now when I can upload this document and ask for it to

00:21:23: summarize?

00:21:23: I was just doing some research around a company and I pulled an annual report,

00:21:29: which I have an MBA, so I know how to read them and what information I'm looking for.

00:21:33: And I started flipping through the pages and it was 124.

00:21:37: And halfway through it, don't ask me why halfway, but I was like, why am I doing

00:21:42: this work?

00:21:44: At that point, I just downloaded the file, uploaded it into ChadGBT, but I feel

00:21:48: like...

00:21:48: It takes time for you to get accustomed to just trading tasks to chat GPT or AI.

00:21:58: So yeah, you may have free freed up time through these repetitive and automated

00:22:02: workflows.

00:22:03: But I think the best way to get started is to start delegating things that you would

00:22:08: commonly do on your own and ask the question, is this something that I could

00:22:13: delegate?

00:22:13: Again, there's privacy and other concerns that you have to keep in mind as well, but

00:22:17: like,

00:22:18: Is this something that I could just ask Chad GPT to do?

00:22:21: Yes or no?

00:22:22: I mean, like if you're not happy with the output, then just go do it on your own,

00:22:26: but start building that skill.

00:22:27: I feel like that takes a little bit of time for you to even identify the right

00:22:31: things to delegate to Chad GPT or other chatbots.

00:22:35: Yeah, that's part.

00:22:36: So I'm, I've been laid off of my job.

00:22:39: And so part of what I'm doing is I'm actually having a bootcamp where I'll

00:22:43: treat train people in my profession, how to build these tools for themselves,

00:22:47: because that's kind of the next skill is, yeah, you know how to use it.

00:22:51: And now you're getting good at prompting it to do your emails and write your

00:22:54: LinkedIn posts.

00:22:55: And that's cool.

00:22:56: But like to take it to the next level and really get the benefit of it.

00:23:00: You have to be able to understand the prompts and then be able to put them into

00:23:03: one of these GPTs.

00:23:05: And if you can do that, you create a really powerful tool for yourself.

00:23:08: Now in recruiting, what will happen is even more powerful because we have API

00:23:12: access to CRMs and ATS systems with candidate information.

00:23:17: And so in the not too distant future, you're going to have recruiters who have

00:23:21: an agent like mine, an AI recruiter agent.

00:23:24: connected to their applicant tracking system, connected to their client

00:23:28: relationship management system.

00:23:30: And they're gonna be able to pull the information directly out of that.

00:23:33: And that's when you're going to get the email that says, you know, remember when

00:23:37: we kept said we kept your name on file and if anything else came up, we'd call you,

00:23:43: surprise, something else came up, right?

00:23:45: Like that's always been a polite way to get rid of people, right?

00:23:48: Like, hey, we'll keep your name on file.

00:23:50: And if something else comes by, we'll call you, right?

00:23:52: someone slash something cared about what you were.

00:23:58: goes and is saved.

00:23:59: Companies do save it.

00:24:00: And the problem is today, like if you have a thousand candidates in there, the search

00:24:04: results will only bring you the top 100.

00:24:06: So the bottom non -none, it's not their fault.

00:24:08: They just can never access that.

00:24:10: Whereas if you API to a system like that, the AI can access all the records and it's

00:24:15: going to be able to go back.

00:24:16: It's going to find your old application.

00:24:18: It's going to find you on LinkedIn or wherever today.

00:24:21: update your information.

00:24:22: It's going to say, oh, is this much of a match?

00:24:23: Here's the information from last time you interviewed.

00:24:26: Put together an outreach email.

00:24:28: Hey, remember how we said we keep your information on file?

00:24:31: We did.

00:24:32: And we have a new position that might even be a better fit for you than the one you

00:24:36: interviewed for before.

00:24:37: And here's the details.

00:24:39: giving competitive advantage, right?

00:24:42: So, whilst others don't even bother looking in their CRM because it's like

00:24:47: maybe even just not clean and sorted and stuff like that.

00:24:51: And now you can even with unsorted unstructured data, you just try to use the

00:24:56: AI and it makes sense of itself.

00:24:58: So for me, it's exciting because I think one of like, it's one of the great

00:25:02: stresses in life is to look for a job, right?

00:25:04: Like it's up there with like dying and public speaking.

00:25:07: Like it's like a major life event.

00:25:09: It's a major trauma.

00:25:10: And I get it right now.

00:25:12: And it's the recruiters and sources who do the job.

00:25:15: They take a lot of pride in their work, but the fact of the matter is they're not

00:25:19: humanly capable of doing what's being asked of them.

00:25:22: There's no human recruiter that can conduct 500 interviews in a week.

00:25:26: It's just not possible and it's unfair to ask.

00:25:29: And so that's what they're up against.

00:25:31: They're really professionals who take a lot of pride in their work, who literally

00:25:35: have an impossible task placed in front of them.

00:25:38: And that's just the first impossible task that's placed in front of them, right?

00:25:41: Like imagine you walk into a room and somebody gives you a piece of paper and

00:25:46: they're like, you have to make a human being.

00:25:48: appear and do work, actual work based on me giving you this piece of paper.

00:25:53: Like go find a human, bye.

00:25:55: Good luck.

00:25:56: Like Legend of Zelda stuff, right?

00:25:58: Like that's a quest.

00:26:00: So like they take it personally when I say things like the AI will help because it

00:26:08: can talk to everybody.

00:26:10: Oh yeah.

00:26:11: And the common pushback, not only in recruiting, but everyone is it's not

00:26:14: creative.

00:26:15: It's not, it's not that smart.

00:26:16: It's not there yet.

00:26:18: Um, this is denials, not just a river in Egypt.

00:26:23: it is.

00:26:24: So I think that's kind of the deal because I just read a Medium article that was sent

00:26:30: to me in my email today talking about a new API which helps parsing documents for

00:26:37: better rack retrieval.

00:26:38: And I myself had just yesterday put in like four hours to improve our rack

00:26:43: pipeline.

00:26:45: So there is still...

00:26:48: a way to go.

00:26:49: So I'm also curious, honestly, to get your book and look at what you've done and how

00:26:55: you approach it because from just my experience, like processing documents and

00:27:01: like unstructured data is possible, but it's also not a small feat.

00:27:06: Right, right.

00:27:06: Yeah, this is the very, we're the very first iterations of this.

00:27:10: So like the very first phone screeners and video phone interview systems are coming

00:27:13: out today.

00:27:14: But the fact of the matter is a human being can't interview that many people.

00:27:18: It's just not possible.

00:27:19: And so it becomes unfair because a lot of people who would be really good fits for

00:27:24: the job never ever get seen.

00:27:27: You know, they never, it's never even seen.

00:27:30: And that's unfortunate.

00:27:31: And it's a bad experience for everybody.

00:27:33: It's inefficient for the company because they just lost it.

00:27:35: You know, they went out looking for that person.

00:27:37: That person actually came to them.

00:27:39: And because of their inefficiencies in sorting and other things and matching and

00:27:44: an inability to tell just from a resume, whether somebody's a match against a job

00:27:47: description, there's this impasse and it becomes this catch 22 problem.

00:27:51: And it's a huge problem and it costs billions of dollars a year in lost

00:27:56: productivity and frustration and all kinds of inefficiencies.

00:28:00: I mean, anybody from the logistics industry would have a heart attack looking

00:28:03: at the pipelines and recruiting like Six Sigma, oh, please forget it.

00:28:07: Like we're not even close.

00:28:09: We're not even a one Sigma.

00:28:10: So we have a long way to go in the profession, but the technology is here

00:28:15: today to automate recruiting.

00:28:17: You could take a phone screen.

00:28:18: You could take a video interview.

00:28:20: There's challenges on that though, because...

00:28:24: You know, when I talked to the testing companies, they say one of the dead

00:28:27: giveaways that somebody's using an AI is they score a hundred percent on the coding

00:28:30: test.

00:28:31: Is that good or bad?

00:28:33: Like, do you, you were testing to see what kind of coder you got, if they could

00:28:38: produce code that's a hundred percent passable on a test, isn't that what you're

00:28:41: really after?

00:28:42: Like, I don't know.

00:28:44: The industry hasn't decided, right.

00:28:46: The industry hasn't decided what the answer to that is yet.

00:28:49: Some companies are like, oh, that's the person we want.

00:28:52: They're innovative, they're forward thinking, they're using the tools, and

00:28:54: others are like, they're cheating.

00:28:56: just doing 100 % coding thing is what you want is how people, what you want is when

00:29:03: you hire a programmer as a problem solver.

00:29:05: So you don't want someone who writes 100 % code for that.

00:29:08: Okay, that's fine, but how does he behave if the code doesn't work 100 % and how

00:29:13: does he approach that?

00:29:15: And that's also something a lot of the AI coder questions which I mentioned earlier,

00:29:21: I had in there like,

00:29:22: And describe what your biggest problem was doing that and how did you solve it?

00:29:28: And so like, and that I get because like, no one needs a coding monkey.

00:29:33: So if you can write a hundred percent code, so good for you.

00:29:36: So, but what if the code breaks?

00:29:38: And that's also the thing with the local solutions oftentimes, like what if it

00:29:42: breaks?

00:29:43: Like, yeah.

00:29:44: is like next week I'll be or week after I'll be recording my own avatar.

00:29:49: And so, you know, what's prevent me from hooking it up to a software engineering

00:29:53: backend and sending my avatar out on interviews, right?

00:29:55: Like this is something.

00:29:58: So we have a lot to think about in the field when it comes to interviewing and

00:30:01: validating skills.

00:30:02: This is actually a big challenge in recruiting today.

00:30:05: And AI is actually not being used here, which is kind of ironic to be really

00:30:10: thoughtful on this particular challenge because.

00:30:13: it's going to become increasingly hard to validate skills over a phone interview or

00:30:17: a video interview when more and more people have access to an LLM that can take

00:30:22: the transcript and run a search and answer the question, right?

00:30:26: So we actually have, we're in a period right now where we don't really have a

00:30:30: good solution, but we need to rethink the interview process.

00:30:34: Can I ask maybe a last question before we part?

00:30:38: We're about time for a controversial one.

00:30:42: So I want you to make it a good one.

00:30:44: So do you think in your perspective, can a recruiter be fully automated or are there

00:30:52: still human tasks that could not be delegated to AI?

00:30:58: Right.

00:30:59: So the question to answer technically, the technical answer is yes.

00:31:04: Now here's the thing about my reading of the law.

00:31:07: You cannot reject a candidate with an AI.

00:31:10: GDPR is explicit, more and more candidate, but there's no law anywhere saying you

00:31:15: can't hire one with it.

00:31:18: So yes can come from an AI.

00:31:21: So I'm not saying that people want that.

00:31:23: Although if you're saying you're a technology company,

00:31:27: your AI recruiter extends you the offer that's us using, right?

00:31:31: So maybe that in the right market, that actually works.

00:31:35: Technically it is feasible to automate end to end recruiting today with AI systems

00:31:40: and to never have a recruiter talk to a human being and get them an offer.

00:31:44: That is technically possible.

00:31:47: Legally, it is challenging at the moment because you're going to have to justify

00:31:52: yes, no decisions.

00:31:54: However,

00:31:55: Most recruiters have very little authority over yes, no decision.

00:31:58: They're a gatekeeper.

00:31:59: They'll interview somebody and pass them on, but there's a ratio.

00:32:03: A good recruiter will have 80 % acceptance rates, which means 20 % of the people they

00:32:07: think should be interviewed don't get interviewed.

00:32:09: So they don't even have really decision -making ability in the process to begin

00:32:14: with to have it taken away from them.

00:32:17: This is something that is unnerving to them.

00:32:20: as a profession because then where's the value add?

00:32:23: And this is why I've been trying to get us to be data driven for so long is we have

00:32:27: to become the business advisors and say, well, unemployment is this rate and

00:32:31: salaries are this rate.

00:32:32: And here's what our competitors are paying, right?

00:32:35: And advise them because that's the information they won't have.

00:32:38: That's what they need to get from the recruiter.

00:32:40: They don't no longer going to need whether this person's technically qualified or

00:32:43: not.

00:32:43: The AI is better at qualifying candidates than recruiters are because

00:32:48: I was a tech recruiter.

00:32:49: I was never a software engineer.

00:32:51: The AI is going to be better at evaluating a software engineer than I am.

00:32:55: I think where the dangerous thing is, and Edgar probably has a lot more knowledge on

00:33:00: this from maybe a technical perspective, but these systems have been more recently

00:33:05: exploited more through kind of reverse prompting.

00:33:09: I don't know what the right terminology it is, but in the last couple of days, I also

00:33:14: read about OpenAI being exploited again and people calling them out like, oh,

00:33:19: Open AI is acting out funky again.

00:33:22: So I'm just kind of relating it back to here.

00:33:24: Could candidates also exploit these chatbots to negotiate themselves like an

00:33:29: unrealistic kind of salary or benefits with AI?

00:33:34: Because there's no human common sense, I think, Edgar, as you mentioned, to kind of

00:33:39: level set the expectations.

00:33:41: Yeah, decisioning will still, and that's where I think humans, the no call, I think

00:33:46: the human will still extend the offer.

00:33:48: I think that's still what most people want, but the decision to say no has to

00:33:52: still come from a human on any level on any of this for the moment.

00:33:56: So I don't think it's going to be the AI rejecting you at a stage or you could

00:34:01: reverse engineer it into giving you better benefits because it can't sign the

00:34:05: benefits package at the end of the day.

00:34:06: The offer letter will still be signed and approved by a human for now.

00:34:10: Five years from now, however, I wouldn't be surprised if that's like a like

00:34:16: Superman 3 .14 is them reverse hack, you know, like how we did the banks with the

00:34:21: pennies.

00:34:22: Like he'll do the GPTs and then he'll get the reverse.

00:34:24: Anyway, it'll be something like that.

00:34:25: Just the AI version of a super heist, but yeah.

00:34:30: all the systems, AI is not even like RabbitMQ with the large action model and

00:34:36: stuff like that.

00:34:38: That's not really what happens in the background.

00:34:41: It's text in, text out, and then the software has to work on it.

00:34:46: So if you don't know the underlying APIs and how they work, and you should do all

00:34:51: this stuff on the backend, please, developers out there, don't do it on the

00:34:55: front end.

00:34:57: And and and yeah having that said it's like you of course you can exploit it and

00:35:02: then the answer is broken and then the whole system breaks so that's Like that

00:35:08: won't get you far Yeah, so so if you use normal security standards as you should

00:35:16: and you also try to break it before you release it That should prevent a lot of

00:35:24: stuff I'm not saying that's not exploitable

00:35:26: Like Mike said, we shouldn't do the yes, no decision, like accepting an offer.

00:35:33: Or me, honestly, even sending the offer should already have some human

00:35:39: intervention in it.

00:35:40: Because as soon as there's money involved and then numbers, I think someone has to

00:35:46: make sense of it.

00:35:49: But it's also, I don't know, I think everything we do today as service,

00:35:55: as like mostly getting information, structure it and evaluating it will all be

00:36:01: replaced by AI.

00:36:03: And using a human for it will be just expensive path like for the rich and

00:36:07: wealthy.

00:36:08: Like today, if you go shopping to IKEA, like you barely get someone to explain you

00:36:13: anything.

00:36:14: Whilst if you go like an expensive store, you have like your personal assistant

00:36:20: explaining you everything about the sofa.

00:36:23: So...

00:36:24: I think that's kind of where this will go as well.

00:36:28: But cautious, like with every ISA system, be cautious.

00:36:32: Um, I actually ended on a high note here.

00:36:35: This is something because there are caution is wise.

00:36:38: Um, but I was just watching a Ted talk from Mustafa Suleman, who's the CEO of

00:36:43: Microsoft AI.

00:36:44: And this caught, I had to pause it, rewind it and catch this word for word.

00:36:49: Cause I thought this was amazing.

00:36:50: He said AI is to the mind.

00:36:52: What nuclear fission is to energy, limitless, abundant and world changing.

00:36:57: Yeah, it is.

00:37:00: I would love before I know we are like, like out of time, but I would love for for

00:37:06: you Mike to at least give us some some hints like we mentioned your book, the

00:37:11: book will be linked on the YouTube video.

00:37:13: I'm not sure how we can do it on the podcast, but I'll figure this out.

00:37:17: Is there anything?

00:37:18: title of your book.

00:37:19: Can you mention the title of your book?

00:37:21: it's the AI recruiter is the title of my book, revolutionizing hiring with advanced

00:37:27: GPT powered prompts.

00:37:28: And then I also have recruiting classes .com, which is where I train.

00:37:33: And then I think you also mentioned you have a GPT in the GPT store.

00:37:40: in the GPT store it is called the AI recruiter and it's a purple squirrel and

00:37:46: anybody who has access to the GPT store can use my AI recruiter for free.

00:37:52: I think you should give it a chance because again, Mike was very nice to show

00:37:57: us some kind of demo how it works.

00:37:59: I think it's really impressive and he invested quite some time to improve it and

00:38:04: get it to a quality where he's happy and he's actually used it in his previous

00:38:08: roles.

00:38:09: So I definitely think you should give it a try.

00:38:13: Yeah, go ahead.

00:38:15: because I find it so interesting, especially like for startups and young

00:38:18: companies, recruiting is hell.

00:38:21: What would you suggest like startups, young companies, small companies, they

00:38:26: want to hire?

00:38:26: Like I have one friend of mine, he just like hired three more people, like he's

00:38:31: hired like 10 people in the last three months from two starting like, so what...

00:38:38: How would you approach an AI recruiting from a young company's perspective?

00:38:45: Maybe you can give some hints.

00:38:48: Well, besides hiring me for consulting, teaching you how to do it, I, you know,

00:38:53: it's a matter of tools.

00:38:54: Sourcing is challenging.

00:38:56: LinkedIn is limited, especially for startups.

00:38:59: Um, there's seek out, um, they work with small companies.

00:39:02: They're like 160 bucks a month for small companies.

00:39:04: They have a license.

00:39:05: So you only need one.

00:39:07: Um, that'll give you access to, to the database.

00:39:10: Cause you're not going to come with one.

00:39:12: You're not going to have a database.

00:39:14: Um, I would start to use them.

00:39:15: They have some AI powered tools, uh, to help you with sourcing.

00:39:18: And then I would look for seek out.

00:39:24: And yeah, they're, they're really good on the front end.

00:39:26: And then they would be a CRM either something like higher easy or higher

00:39:31: suite.

00:39:31: They're AI powered.

00:39:32: This is nice for our profession is actually a lot of the tools are AI powered

00:39:37: and they're available.

00:39:39: you know, subscriptions like $150, $160 a month a seat, which for a startup is very

00:39:44: affordable and you typically only need one as a startup.

00:39:47: So you can get, you know, an AI recruiter, a sourcer, and a CRM for about $350, $400

00:39:54: a month.

00:39:54: If you're going to be doing recruiting that's, and you're using AI, that's

00:39:58: probably the way to start.

00:39:59: It's low investment.

00:40:01: It's not super intense.

00:40:02: It's all SaaS.

00:40:03: Mm -hmm.

00:40:03: like an implementation unless you wanna do API implementations and those are becoming

00:40:08: more and more simple, right?

00:40:10: And straightforward to do.

00:40:11: So those would be my suggestions to start with.

00:40:15: Thank you very much.

00:40:16: Mm -hmm.

00:40:17: I love that you got that one in before we part.

00:40:22: Again, thank you, Mike, for all the valuable lessons.

00:40:27: I haven't been this close to the recruiting space, so I definitely learned

00:40:31: a lot.

00:40:32: Thank you for taking the time and sharing your knowledge, expertise with our

00:40:37: audience.

00:40:37: So any parting thoughts from you, Edgar, Mike?

00:40:40: Yeah, also from my side, thank you very much.

00:40:43: It was really insightful.

00:40:45: I'm really looking forward to look at this because, like I said, it's a hard

00:40:51: challenge for every company out there and even harder, I think, because even getting

00:40:57: your stuff on StepStone is so expensive.

00:41:02: So having any alternative is really welcome.

00:41:06: And...

00:41:07: Yeah, thank you.

00:41:08: Thank you very much.

00:41:08: It was really insightful also for all you out there listening.

00:41:12: Please take this example.

00:41:14: If you build AI solutions, try to start where it's most effective and takes away

00:41:19: mundane administrative tasks, where it involves language understanding.

00:41:22: If you go in with that mindset, you will pretty soon get really great results and

00:41:27: see what AI can do for you.

00:41:30: And yeah, thank you very much.

00:41:31: Last words from Mike.

00:41:33: Oh, well thank you for having me.

00:41:36: I hope this was insightful.

00:41:37: For those of you who are yet to get started, I guess my last parting advice

00:41:41: would be ask it a question you never got a good answer to when you were a kid.

00:41:46: Like, why is the sky really blue?

00:41:48: Why is the grass really green?

00:41:49: Something you never really fully got your hand around.

00:41:51: And just start having a conversation with it.

00:41:53: Treat it like you would a text conversation with somebody who's, I don't

00:41:59: know, extremely well educated and could talk to you about any subject.

00:42:02: Awesome advice.

00:42:04: Thanks again.

00:42:06: All right.

00:42:07: Bye.

00:42:08: Bye bye.

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