TREND NOTE: Will AI augment or replace current recruiting tech infrastructure?

AllyO announced a $45 million series B and wants to be your new hiring and onboarding platform.

If you’ve taken a call, or a briefing, from an AI-based recruiting tech then you’ve experienced the awkward messaging that all AI-based recruiting tools that go beyond a bot experience. While most probably see the opportunity to compete head on with the ATSes, CRMs, and recruitment marketing platforms, they don’t have the depth to do that today. In fact, they are dependent on integrating with core recruiting and HR systems today, while they build out their platform. So, most AI-based solutions talk about eliminating tasks, augmenting existing systems, and making the process more efficient and human – especially in high volume hiring. When you see what they offer and ask, “Would you replace my existing ATS or CRM?,” that’s where it gets awkward.

In their press release, AllyO wasn’t so awkward- doubling down on language like “end to end AI” and “recruiting and onboarding” platform for high volume recruiting, it looks like they’re ready to square off with the ATS, CRM, and recruitment marketing vendors that are supporting large enterprise. This would include companies like SmartRecruiters who announced a $50 million round last week focused on AI, Workday who recently invested in Beamery, iCims who recently acquired TextRecruit, Oracle, SAP SuccessFactors, IBM with Watson Talent. All operating in large enterprise and high volume recruiting environments. All spanning from recruiting to onboarding, and beyond. $45 million doesn’t sound like quite as big a raise when you look at those brands and consider their roadmaps, never mind those emerging to this market segment like Greenhouse.

What’s a talent acquisition leader to do?

Whether considering AllyO or any other AI “platform,” talent acquisition leaders need to first understand what level of automation they are comfortable with. Are they looking for tech that allows recruiters to jump into, and out of, the process in order to engage candidates, based on triggers that the company sets up? That requires an interface for recruiters that some AI “platforms” just don’t offer yet. Or, are you looking to put recruiting “in a black box” and let the bots handle the entire flow? How much of the recruiting experience for candidates is based on interaction with a human? And, how does that vary from company to company and position to position?

One thing is for sure, 2020 is shaping up to be an interesting year for recruiting tech competitions.


AllyO’s PR:

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