Recruitment faces new challenges with AI and data privacy

The recruitment landscape is facing new challenges regarding data privacy and the integration of artificial intelligence. In Switzerland, Validato highlights the necessity of strict data retention concepts to comply with the new Federal Act on Data Protection (nDSG). To defend against potential discrimination claims under the Equality Act, companies may retain application documents for up to three months after a rejection. For talent pools, experts recommend a retention period of approximately twelve months, provided there is active consent, to avoid creating a “data graveyard.”

Simultaneously, the rise of AI in job applications is creating a mismatch in the hiring process. A study by Tellent and YouGov reveals that 50% of applicants have used AI to draft cover letters. However, there is significant skepticism regarding AI in decision-making; only 23% of applicants support AI-assisted personnel decisions, and 44% of HR professionals prefer relying on human intuition. Experts suggest that while AI can support the process, recruitment requires transparent, data-driven criteria to move away from subjective “gut feelings” that are difficult to verify.