AI in recruitment: Benefits, limitations and considerations

The conversation around artificial intelligence (AI) in recruitment has evolved rapidly and so have the expectations of job seekers and hiring teams. At TPP Recruitment, we’ve been closely tracking how AI is being used across the non-profit and public sectors, and our latest research reveals a growing gap, job seekers are embracing AI faster than organisations are prepared for.

In this blog, we explore the current landscape, the benefits and risks of AI in recruitment, and what HR professionals need to consider to stay ahead.

Has AI adoption changed since our last survey?

In our previous 2024 TPP Salary, Rewards and Benefits survey, we found that 83% of organisations were not using AI in their recruitment processes, with over half unsure about future adoption and 39% stating they had no plans to use it.

Fast forward to 2025, and while the overall adoption rate remains relatively low, there are signs of gradual movement:

• 11% of organisations are now using AI in recruitment, primarily for CV screening and interview scheduling.
• Typically, larger organisations are more likely to have plans to implement AI tools soon.
• However, many organisations are informally vetting applications for use of AI, but formal policies remain rare, with only 10% of those using AI having any recruitment-specific guidelines in place.

This suggests that while the headline figure of non-use hasn’t shifted dramatically, interest and intent to adopt AI are growing, especially as jobseeker usage continues to rise and pressure mounts to modernise recruitment processes.

Job seekers usage is outpacing organisational adoption

Our 2025 AI in recruitment survey of jobseekers and hiring managers in the non-profit sector uncovered a striking trend:

• 60% of jobseekers have used AI to support a job application.
• 80% say they would consider using it in the future.
• 37% are using AI to write CVs or cover letters from scratch.

In contrast, only 11% of organisations are currently using AI in their recruitment processes and just 10% of those have formal policies or guidelines in place.

This mismatch is creating new challenges for hiring teams, from assessing authenticity to ensuring fairness and consistency in shortlisting.

Benefits of AI in recruitment

When used thoughtfully, AI can bring real value to recruitment processes:

• Efficiency: Those that are using AI are using it for efficiency gains, such as automating tasks like feedback, interview scheduling. Some are using for CV screening and job advertising targeting to reduce their time-to-hire and free up HR teams to focus on strategic work. However, due to the current market conditions and extra processes in place to screen candidates, not all are seeing these benefits.
• Improved experience: Tools like chatbots and automated updates can keep job seekers informed and engaged throughout the process, improving your employer brand.
• Data-driven insights: AI can help identify patterns in applications and support more objective decision-making, when paired with human oversight.
  
  

Limitations and ethical concerns

Despite the potential, our research shows that HR professionals are cautious about using AI:

• 80% of hiring managers cited ethical concerns as their top issue.
• 70% are worried about data privacy and bias in algorithms.
• Many hiring managers rated their knowledge of AI and data protection as just 5 out of 10 and 49% have not received any training by their employer on the use of AI in the workplace.

Without clear policies, training, or oversight, you risk inconsistent practices, potential discrimination, and damage to your employer brand.

What HR teams should consider

To navigate this rapidly evolving landscape, HR leaders in the non-profit sector should:

• Develop clear AI guidelines: Even basic policies can help ensure consistency and transparency both internally and externally.
• Upskill hiring managers: Training on AI tools, data protection, and bias mitigation is essential.
• Adapt recruitment processes: Consider replacing cover letters with role-specific questions, using skills-based assessments, and verifying candidate identity where needed.
• Maintain human oversight: AI should support and not replace human judgment, especially when assessing soft skills, cultural fit, and potential.

Our full report, AI in Recruitment: Non-Profit Sector 2025, includes detailed findings, and practical recommendations for non-profit organisations.

If you’d like help reviewing your current recruitment processes, our team at TPP is here to support you. Contact the team on 020 7198 6000 or email info@tpp.co.uk.