As AI tools become more embedded in the recruitment process, there is mounting pressure on employers to be more transparent about when and how these tools are used to assess candidates.

Three in 10 UK employers are already using AI in hiring, according to research by StandOut CV, representing a threefold increase since 2022. HR software providers, including Workday, Dayforce and ServiceNow, have introduced agentic AI features to help streamline the recruitment process, while LinkedIn’s AI hiring assistant helps recruiters shortlist candidates.

Despite the increased use of AI in hiring, there is no legal obligation to inform candidates about its use. However, disclosing where AI has been used in the process is considered best practice.

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Transparency is the “foundation” of fair and ethical recruitment, according to Ronni Zehavi, CEO and co-founder of HR software company HiBob. “Candidates should always know when AI is used in recruitment – whether that’s screening CVs, analysing interviews or capturing notes. Sharing this openly isn’t just about compliance, it’s about respect.”

Employers must also stay compliant with GDPR rules, which gives individuals the right not to be subject to decisions based solely on automated processing.

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“Bias, data quality and a lack of context can all influence outcomes – and that creates ethical and legal exposure. These tools should support hiring decisions, not make them,” Zehavi added.

Emma de Sousa, managing director of Access Legal and Recruitment, said responsible AI use depended on “robust security models that respect permissions and privacy, and oversight” to ensure tools did not bypass human review or reinforce bias.

Keeping human judgement at the centre

Cosmetics company Beauty Pie is one of the businesses that has sought to make it clear to candidates how technology is used in its recruitment decisions.

The company revealed that it uses Metaview, an AI notetaker that records and summarises interviews, allowing hiring teams to focus on candidates rather than taking notes.

Beauty Pie said its aim was to balance efficiency with a “human connection”, adding that candidates would not be penalised for using AI tools in their applications. 

Instead, the company encourages candidates to “let their experience, personality and potential shine through”.​

Jobsite Welcome to the Jungle has also sought to clarify its use of AI. 

Billy Williams, its vice president of engineering, said: “We use AI to help match candidates to roles and streamline interview scheduling, allowing our teams to focus on building relationships and understanding candidates’ potential.”

However, it also expects the same transparency from people applying for roles through its website. “We should tell candidates when we expect them to use AI during the interview process so they can prepare to use it in a way that enhances their work, rather than hides it,” Williams added. “Likewise, we must be honest about how and when we might use AI in the recruitment process.”

This approach ensures the process remains “ethical, explainable and centred on people”, according to Williams.

Why transparency matters

New research supports the case for transparency. A study led by Anne-Kathrin Klesse of Rotterdam School of Management, Erasmus University, found that applicants who felt they were being evaluated by AI tended to emphasise analytical skills while downplaying emotional qualities. 

Based on data from more than 13,000 participants, the study concluded that, when employers were open about how AI was used, candidates presented themselves more authentically, resulting in fairer and more accurate hiring outcomes.

Doug Betts, founder and fractional chief people officer at Sure Betts HR, said responsible use of AI could strengthen rather than undermine recruitment. 

“Used responsibly, AI can enhance – not replace – the human connection at the heart of good recruitment,” he explained. “But without openness and oversight, it risks eroding trust before a new hire even walks through the door.”

For more information about using AI as a people professional, visit the CIPD’s topic page