Companies are increasing their investment in conversational AI for talent acquisition. In research we conducted earlier this year, 36% of companies invest or plan to invest in these solutions this year compared to 7% in 2019. The value goes beyond speed and efficiency. Conversational AI improves the overall experience and helps to keep candidates engaged throughout the process. When recruiting and hiring teams are asked to do more with less, this is non-negotiable.
From an analyst’s perspective, this has been an exciting tech area to watch over the past year. Customers are more innovative in how they use these solutions. Providers are expanding their capabilities, and investors are looking for new opportunities. Companies in a variety of industries are looking at how these solutions can improve their talent acquisition efforts. All eyes are on conversational AI.
And yesterday, HireVue announced plans to acquire AllyO, a leading conversational AI provider that offers interview scheduling, onboarding, and employee experience capabilities. The acquisition helps to strengthen HireVue’s interview and assessment offerings with an improved experience.
Here are some of my thoughts on the acquisition:
- Expanded Use-Cases: Some of the misperceptions of conversational AI are around the use cases. Companies tend to think that these solutions can help anyone applying for a job or anyone interested in learning more about the company. Conversational AI provides value throughout the entire candidate’s journey from apply to onboard and even employee experience. This acquisition by an interview and assessment provider will allow clients to engage with candidates and simplify scheduling and screening in the interview to hire stages.
- Omni-Channel Communication: Candidate communication is a priority for companies, but what works for one candidate or one job might not work for another. Companies need a broad set of communication tools to engage with candidates where they are most comfortable, including video, chat, messaging, and text. This acquisition gives HireVue clients a broader set of communication tools to reach talent.
- Future Acquisitions: The question remains…Is the future of conversational AI in a stand-alone market or part of a larger talent acquisition suite? When one provider gets acquired, others tend to follow. It will be interesting to watch how HireVue integrates with AllyO and how customers respond.
We will keep you posted as we continue to learn more, but overall, this acquisition further validates the staying power of conversational AI and TA’s future.