Artificial Intelligence

How AI Is Helping Companies Hire for Skills, Not Just Degrees

Written By : Sarbojit Mallick

For years, resumes and degrees dominated the hiring process. A well-known college on paper often mattered more than proven ability. But business outcomes depend on execution, not just credentials. Hiring practices are being reworked, skills now take precedence, and AI is powering that shift.

Practical Skills Take Priority

According to a recent survey by job platform Indeed, 80% of Indian employers place higher value on practical skills and experience than on academic qualifications. Around 60% employers expect this trend to motivate candidates to pursue practical certifications, hands-on learning, and specialised training.

Hiring managers focus on capability, learning agility, and the ability to adapt. These qualities are better revealed through project work and assessments than through degrees. AI enables organisations to evaluate those skills consistently, across large volumes of applicants.

AI Usage Is Expanding in the Right Areas

According to the Society for Human Resource Management (SHRM), as of February 2024, one in four companies is using AI across HR operations. These organizations are typically in finance, tech, and information services, with a workforce of 5,000 or more.

Among them, 64% rely on AI for talent acquisition. Others use it for learning and development (43%) and performance tracking (25%). Within recruitment, AI helps in writing job descriptions, customizing listings, and screening applications. Over 65% of these companies now use AI to generate job descriptions, and 42% tailor postings based on role-specific language and priorities. About one-third also use it to evaluate incoming résumés.

These are not small, exploratory pilots. Most of these implementations are active and delivering results. The companies using AI this way report faster hiring cycles and improved quality of applicants. Instead of wading through hundreds of résumés, hiring teams focus on the strongest matches early in the process.

Faster Hiring, Higher Relevance

AI accelerates every stage of recruitment, from job description generation to interview scheduling and candidate shortlisting. The technology streamlines repetitive work, reduces delays, and improves recruiter bandwidth.

Faster engagement improves candidate experience. Application drop-offs decrease, qualified candidates stay engaged, and hiring teams operate with better clarity. Businesses fill roles quicker, without compromising fit or quality.

The purpose here is not to automate judgment, but to remove bottlenecks. With AI managing the repetitive parts, recruiters have more time to assess a candidate’s intent, attitude, and long-term potential.

Smarter Access to a Wider Talent Pool

When degrees lose priority, employers start discovering candidates from alternate paths, such as bootcamp graduates, career switchers, and professionals from smaller institutions. AI tools evaluate portfolios, problem-solving, and soft skills through structured assessments and simulations.

This approach also reduces inconsistencies. Manual screening often carries bias or subjective preferences. When implemented correctly, AI applies the same standard across all candidates. The result is a broader, more inclusive pipeline without compromising on role-fit.

What Slows Down Adoption

Despite the benefits, adoption has been uneven. Some companies remain cautious. According to SHRM, the biggest hurdles include:

  • Lack of clarity about which tools fit their organisation (42%)

  • Inability to properly audit or manage AI systems (41%)

  • Concern that AI lacks the human touch required for hiring decisions (40%)

These concerns reflect gaps in understanding and implementation, not the potential of the technology itself. AI systems are most effective when paired with human judgment. It is a decision-support system, not a replacement for people.

Changing Roles, Not Eliminating Them

Concerns about AI replacing jobs in HR are largely unfounded. SHRM reports that only 2% of HR professionals in AI-using organisations have seen job reductions due to AI. In contrast, 32% report that AI has changed their existing responsibilities, moving their focus toward strategy and decision-making (SHRM, Feb 2024).

Recruiters who work with AI spend less time on logistics and more time identifying culture fit, building relationships, and designing better processes. Overall, AI in hiring extends recruiters’ capability rather than cutting roles.

India’s Advantage in Skills-Based Hiring

India has a talent-rich workforce. Companies looking to scale, especially in digital and knowledge-driven sectors, need people who can contribute immediately. Skills-based hiring aligns well with this expectation.

Mid-sized companies, too, can benefit. AI hiring tools are now more accessible and affordable. They enable smaller firms to compete with larger organisations by making smarter hiring decisions without large teams or budgets.

This shift also changes candidate behaviour. When hiring focuses on outcomes, job seekers prioritise building real-world skills. Certifications, project portfolios, and domain knowledge gain currency. This leads to better workforce preparedness across the board.

Resumés still matter, but they are no longer the main filter. Employers are paying closer attention to what candidates can do, rather than where they studied. AI is helping companies identify, assess, and engage those candidates more quickly and fairly.

Hiring is not about degrees. It is about getting the work done. That is what matters to business. And the faster we can measure skill, the better we can match people to roles where they succeed.

Companies that adopt this model will build teams aligned to execution and outcomes, not titles or paper qualifications. That is a better way to grow, both for businesses and for the people they hire.

Authored By Mr. Sarbojit Mallick, Co-founder, Instahyre

[Disclaimer: The views expressed are solely of the author and Analytics Insight does not necessarily subscribe to it. Analytics Insight shall not be responsible for any damage caused to any person/organization directly or indirectly.]

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