Market Insights

AI Application in Recruitment: Labor Market Trend

Explore how businesses apply AI in recruitment to optimize processes, enhance efficiency, and improve candidate experience.

By Thu Ha9 min readSeptember 4, 2025
AI Application in Recruitment: Labor Market Trend

Why should businesses apply AI in recruitment?

Have you ever wondered why companies often complain about how hard it is to find good talent, even though every job post attracts hundreds or even thousands of applications? According to statistics from TopCV, up to 68% of businesses in Vietnam struggle to find suitable candidates, despite receiving a large number of CVs.

The problem lies in this: the quantity of applications is high, but the quality and suitability vary widely. If HR teams rely solely on traditional methods, they’ll spend a great deal of time reading CVs, making calls, scheduling interviews… yet still might not find the right person.

This is where AI in recruitment comes into play. AI helps automatically screen, analyze, and provide objective recommendations. Not only does it save time and costs, but it also improves the candidate experience and increases the chances of finding the right fit from the start.

Candidate experience and the transformation of the recruitment process

A good recruitment process not only benefits the business but also creates a positive experience for candidates. In fact, up to 58% of candidates decline job offers if they have a poor interview experience. This shows that the “candidate experience” is becoming a decisive factor in the success or failure of recruitment efforts.

Enhancing the candidate experience through AI

AI helps candidates stay “updated” on their application status—from submission to CV screening to interview scheduling. The system automatically sends notifications or quick email responses, instead of leaving candidates waiting in uncertainty. This approach not only ensures transparency but also creates a more professional impression in the eyes of candidates.

Creating job descriptions and recruitment posts with AI

A vague or dull job description (JD) can make candidates skip it right from the start. AI can suggest ways to write clearer, more concise, and engaging JDs based on data from successful job postings. This helps businesses save effort while attracting the right group of target candidates.

CV screening and chatbot responses

Instead of HR staff having to manually read each CV, AI can automatically screen applications based on predefined criteria such as qualifications, skills, and years of experience. In addition, AI chatbots act as “online assistants,” ready to answer common candidate questions about salary, benefits, and the work environment. As a result, the candidate experience becomes friendlier and more convenient.

Recruitment software and process automation

For AI to be effectively applied in practice, businesses often use recruitment software with built-in automation features. These tools manage the entire process—from posting job listings and screening applications to scheduling interviews and sending offers.

Automatic candidate profile classification

The AI system can categorize CVs into three groups: suitable, potential, and not qualified. This allows HR to focus their time on high-quality candidates and avoid overlooking talent just because a CV is not clearly written.

Optimizing the interview and feedback process

AI helps schedule appointments and send reminders to both candidates and recruiters. After the interview, the system compiles feedback from multiple evaluators to ensure objectivity. More importantly, candidates receive feedback quickly, rather than having to wait for weeks.

Data analysis

Another major advantage is that AI helps analyze recruitment data—such as the average time to fill a position, which channels bring in the most qualified candidates, and the offer rejection rate. This provides businesses with valuable insights to improve their strategies and optimize costs.

Challenges in applying AI technology in recruitment

Despite its many benefits, implementing AI in recruitment still faces certain challenges.

1. The cost of AI model storage

One of the biggest challenges in implementing AI is storage cost. AI models—especially machine learning or deep learning models—require massive memory capacity and storage systems. If a business lacks the proper infrastructure, renting servers or using cloud services can create significant financial pressure.

2. The cost of building AI models

In addition to storage expenses, building AI models also requires significant investment. Businesses need to spend on hardware, software, training data, and a team of experts to design and implement the system. For small and medium-sized companies, this can be a major obstacle if there is no clear plan in place.

3. Lack of skilled personnel

AI is a complex field that requires personnel with strong expertise in data science, programming, and analytics. However, such skilled professionals are currently scarce in the job market. This shortage makes it difficult for many businesses to operate or scale their AI applications effectively.

4. Lack of strict regulations

The legal framework and regulations surrounding AI use in many countries are still incomplete. This creates uncertainty during implementation, as businesses worry about potential violations of data protection, privacy, or AI ethics laws. Without a clear “legal corridor,” companies tend to hesitate or delay adopting AI solutions.

5. Data security risks

AI requires data to “learn” and make accurate recommendations, and this data often involves sensitive information about customers or internal business operations. However, many companies still lack comprehensive data management systems. Without strong security measures, if an AI system is attacked or data is poorly managed, the risk of data loss or leakage can result in significant financial damage and harm to brand reputation.

6. Educating users to understand AI’s limitations correctly

Many businesses are concerned about investment costs or the need to retrain HR staff. Some HR professionals even worry about being “replaced by AI.” In reality, AI only acts as an assistant that handles repetitive tasks—the final decisions still rest with humans.

On the other hand, AI is not “all-powerful.” Many companies and users tend to have unrealistic expectations about what AI can do, which often leads to disappointment or misuse. Therefore, it’s essential to have training programs and internal communication to help employees understand AI’s limitations, how it supports their work, and where human intervention remains necessary.

Hire Central: Hire the right people, faster and smarter with AI

In Vietnam, Hire Central is one of the pioneering solutions applying AI in recruitment. The platform stands out for its ability to:

  • Automate the entire process—from job posting and CV screening to interviews.
  • Analyze recruitment data to support more accurate decision-making.
  • Enhance the candidate experience through fast, transparent, and professional feedback.

Hire Central is designed to fit the Vietnamese market, allowing businesses to easily adopt the system without significant infrastructure costs or long deployment times.

Conclusion

Using AI for optimal integration in the recruitment market

Download ebook now!

AI in recruitment is no longer just a trend—it has become a practical solution for Vietnamese businesses. From improving the candidate experience and optimizing recruitment software to implementing automation, AI is making the talent search and selection process more efficient, faster, and more transparent.

Companies that adopt this technology early will gain a clear competitive advantage in attracting and retaining top talent.

Take 15 minutes for a demo to explore how Hire Central’s integrated ATS platform can transform your company’s recruitment process.

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