How Does AI Affect the Hiring Process for Background Checks?

Companies are increasingly using artificial intelligence (AI) applications for various uses. These platforms can enhance accuracy, boost efficiency and productivity, and help make better data-driven decisions. But AI is also finding increased use in hiring for many companies, including during the background check process.

With over 90% of employers conducting background checks for some or all new hires, these routine screenings have become a staple of the hiring process. And AI is  transforming this process in multiple ways, such as:

1. It is speeding up the process. AI can often complete routine background checks much more quickly than a person could. Employers or third-party background check services often spend a lot of time compiling information, determining which items are relevant, ensuring compliance, identifying red flags, and making decisions based on findings. AI-powered background checks automate most of the process, only leaving the important steps, such as making decisions, to humans. In fact, the delivery time for background checks can be reduced from ten business days to as little as one hour. The result of this automation is that background checks can get done quicker than they would otherwise, leading to faster hiring, which is crucial for many companies.
2. It can make the entire process easier to manage. If you own a large company, you are likely continuously conducting background checks for multiple open positions. And if you get a lot of applicants, this process can quickly become challenging. Automation and AI simplify the process and leave even large-scale background check operations easy to manage.
3. It can make re-checking easy. Background checks are completed at a point in time. But real life continues to move forward, meaning a specific employee’s circumstances may change at any time. Routine background checks are often important for identifying any red flags that may arise due to a person’s changing circumstances. But most companies struggle with identifying a way to do this efficiently and effectively. AI platforms can conduct regular re-checks to ensure that ongoing criminal monitoring can help your business stay safe.
4. It can reduce overt and subconscious bias. One of the major violations of many federal and state laws related to background checks is discrimination. However, it is hard to remain completely objective, and everyone has biases, even if they are only subconscious. Many proponents of using AI in background checks cite that these systems are great for removing bias from the process. AI categorizes based on data alone, reducing the risk of your company engaging in unintentional discrimination. And this ultimately reduces your legal risk of being accused of discrimination.
5. AI can protect the privacy of applicants better. Most AI platforms sort and narrow down the data that employers are allowed to see, restricting it to only relevant fields. Often, this means that the employer sees less data about the candidate until they are ready to make hiring decisions. And this protects applicants’ privacy more than background checks that humans conduct.
6. AI forces employers to consider the dimensions they want to rate candidates on. Using AI platforms for background checks requires the employer to sit down and identify the information they want to collect about candidates, the red flags that they want to exclude candidates based on, and situations that may require exceptions to the rules. Overall, it forces more planning on the employer, which is a great way to establish hiring criteria and apply them uniformly to all candidates. And it results in background checks focusing on the right data points by weeding through mountains of data. This process ensures that you can narrow down your field of potential candidates quickly and using insights.
7. It results in better analyses. When humans conduct background checks, there is a limit to how much information they can review before it becomes time- and cost-intensive. However, AI enables background checks to be conducted using far more data points than would be possible by a human reviewer. And the capabilities of this technology to make connections between vital data points and identify important patterns are far greater. Furthermore, AI can automatically remove duplicate reports and false negatives, improving the report’s accuracy. Ultimately, this often results in a far more comprehensive and better-quality review than a traditional background check.
8. It assures compliance with state and federal requirements. One of the biggest challenges of conducting background checks is complying with state and federal laws, such as the Fair Credit Reporting Act (FCRA). A violation of these requirements can land your business in hot water, requiring payment of fines or penalties. But AI platforms are often designed to make it easy to ensure that the application adheres to all state and federal laws related to conducting background checks and fair hiring practices.
9. It can use data from all over the world. AI platforms can also scour for data sources that have been difficult for traditional background-checking companies to access. For instance, it can pull and process records in numerous foreign languages, which is nearly impossible for any traditional background-checking company to do. And if they were to do it, it would likely be cost-prohibitive. But AI platforms can complete this task easily and usually with no additional cost.
10. It can let you make fast hiring decisions to give you a competitive advantage. If you are using AI-driven background checks, you are likely able to make hiring decisions far quicker than your competitors, which means you can make job offers and secure conditional offers faster than they can, too. And in a competitive job market, speed matters. Your ability to make fast hiring decisions can lead to hiring the best candidates on the market before your competitor even has a chance to interview them. And all business owners and leaders know that your company’s success is directly linked to the quality of its employees.

Conducting modern is more important – and more complex – than ever before. To learn more about AI-powered background checks, contact USAFact today!

USAFact Global Screening Services provides comprehensive background and criminal checks for employers that comply with federal and local laws. By helping you eliminate high-risk applicants through tailored solutions, USAFact enables you to create a safe and productive work environment and a foundation for future success.