BANKING ACADEMY

BUSINESS ADMINISTRATION MAJOR

SEMINAR

TOPIC: ARTIFICIAL INTELLIGENCE APPLICATION

IN RECRUITMENT AND SELECTION IN VIETNAM

Instructor: Nguyen Thu Tram

Members: Nguyen Mai Linh – 22A4030097

Trinh Thi Ngoc Phuong – 22A7510059
Nguyen Minh Thanh – 22A4010293
Vu Manh Tuan – 22A4030548

Hanoi, March 27th 2022

Abstract

Artificial Intelligence (AI) is a broad term that refers to the science of artificial intelligence. It
is often defined as the property of machines that mimic human intelligence that is
characterized by behaviors such as cognitive abilities, memory, learning, and decision-making
(Chen & Wong, 2019). In fact, the world's AI-driven recruiting industry is now estimated to
be worth more than $500 million, with many products already in use such as facial recognition
and assessment programs. Appreciate candidate expressions in video interviews or resume
screening platforms to select candidates that match the job description. Mercer, a global
recruitment consulting group, has conducted several surveys and studies, and 73% of HR
executives predict a revolution in recruitment within the next 3 years. Artificial Intelligence
(AI) is a topic of interest to many company owners in Vietnam, but is not widely practiced in
commercial activities, especially in recruitment and development. Many Vietnamese
recruitment websites have also applied AI in the recruitment process, mainly in the early
stages of recruitment. The study was conducted to highlight the current situation of applying
AI in Vietnam in the field of recruitment and at the same time suggest solutions to overcome
the disadvantages. To carry out this study, the team used Literature Review research method to
collect documents that have been conducted to find the specific checks, such as solid
references, authoritative and unbiased references, have been used to ensure reliability and
validity.

Keyword: Artificial Intelligence, Human Resource Management, Recruitment and Selection,

AI in recruitment and selection

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1. Introduction
Today, people keep talking about Industry 4.0 and how this technology age will affect our
lives, not the economy, the business environment. The overall goal of Industry 4.0 is to
increase productivity and, of course, profits by using intelligent machines and systems
connected to the internet. Components of Industry 4.0 include Autonomous Robots, System
Integration, Internet of Things (IoT), Simulation, Additive Manufacturing, Cloud Computing,
Virtual Reality, Big Data and Information Security network. Artificial Intelligence (AI) is very
much related to Industry 4.0, and the development potential of AI in the Industrial Revolution
4.0 is huge. AI is a technology in computer science that creates machines that can act and react
like humans, in other words, AI can create machines or computer systems that simulate the
ability of human perception and learning. Stanford professor John McCarthy had defined:
“Artificial Intelligence is the science and engineering of making intelligent machines,
especially intelligent computer programs. It involves the same task of using computers to
understand the human mind”. Among the activities designed to be performed by computers
using Artificial Intelligence are speech and image recognition, learning, planning, and
information feedback. We may not realize that we have devices with built-in artificial
intelligence. This is because popular mobile apps like Siri in the iOS platform, Google apps
like Gmail and Google Translate, and Google Maps, Amazon, Netflix, Facebook, and Spotify
already use AI in their platforms. In business operations, an emerging trend is the use of
Artificial Intelligence in the recruitment and selection process. AI can help recruiters make
recruiting more efficient, especially when it comes to selecting the best candidates for their
business. Generations X and Y may still remember they used to look up job advertisements in
newspapers and magazines, and apply for jobs in print. Now that the job application has
undergone significant changes, the hard copy job application has been replaced by applying
online via Gmail or directly through job portals. HR Managers can also hunt for talent using
online channels such as LinkedIn, a business and job search service that operates through
websites and mobile apps. This way, the recruitment process will be much easier and more
efficient with the help of AI technology. This article will discuss the current status of applying
Artificial Intelligence technology in recruitment and selection in developed countries. On the
Vietnamese side, we will point out more advantages and disadvantages in the process of

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applying Artificial Intelligence in recruitment and selection. From those studies, we will offer
solutions to help Vietnam catch up with the trend of applying AI in recruitment.
2. Literature Review
To conduct this research, a thorough examination of the literature was conducted in order to
discover suitable AI-application areas that could help with the recruitment and selection
process. Specific vetting measures, such as solid references, reliable writers, and the absence
of bias, were used to assure reliability and validity.

Artificial Intelligence
Artificial Intelligence (AI) is a broad term for the science of artificial intelligence. It is
generally defined as the property of machines that mimic human intelligence as characterized
by behaviors such as cognitive ability, memory, learning, and decision making (Chen &
Wong, 2019). AI is critical to social development, and it has yielded revolutionary results in
improving labor efficiency, lowering labor costs, optimizing human resource structure, and
creating new job demands (Zhang & Lu, 2021).

There have been significant advancements in some AI applications, such as pattern

recognition and language translation, as well as deep learning using neural networks in data-
rich contexts, bringing us closer to true AI. Nonetheless, few organizations have even entered
the big data stage when it comes to employee management, where the promise of more
sophisticated decisions has been trumpeted loudly and often (Tambe et al., 2019). According
to LinkedIn, only 22% of companies say they have implemented analytics in human resources
(HR), and it's unclear how sophisticated those analytics are in those companies. 

Human Resource Management

Human resources are widely regarded as one of an organization's most valuable assets, and
successfully managing this asset is thus regarded as a critical managerial responsibility
(Devannah et al. 1984). According to Murad (2000), human resource management is defined
as the method in which the activities of the staff are monitored or to provide them with the
best efficient way of working in a friendly and good environment and to coordinate between
themselves and with the higher management. Staffing, employee performance management,

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development of employee qualifications and careers, and compensation of employee efforts
are all tasks that fall under the umbrella of human resource management (Strohmeier &
Piazza, 2015).

HR departments are increasingly embracing the digital revolution and employing a variety of
techniques to streamline resources, including big data analysis, artificial intelligence, and
cloud computing (Amla & Malhotra, 2017). In human resource management, organizations
can apply Artificial Intelligence or digital technologies such as chatbots, machine learning,
and robot process automation in their tasks to help with recruitment, screening, onboarding,
and interviewing, among other things.

Recruitment and Selection

Recruitment and selection are parts of the process in human resource management. According
to Ryan and Ployhart (2014), these parts are some of the most prominent and important areas
of research and practice in both work/organizational psychology and HRM.

Recruitment is the process of attracting people who are either potential candidates for the
organization or will be chosen for specific departments. This entails communicating with
current or potential job seekers, inviting them to apply for the position, and attempting to
persuade them to work for the company in any of the fields. To achieve the best quality result,
the goal is to have the best quality in the best way and with the best numbers. Selection is the
later stage of recruitment. It includes not only choosing new members of the organization but
also ensuring that the selection process attracts competent and qualified applicants who are fit
for the position. Most selection activities follow a standard pattern, beginning with an initial
screening interview and ending with the final employment decision (Kamran et al., 2015). 

AI in recruitment and selection

Nowadays, employee recruitment and selection have been heavily affected by the emergence
of technology, influencing all different aspects of the recruitment and selection cycle (Woods
et al., 2020).

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Hunk Schroer and Luetge (2022) defined AI recruiting and selecting as any procedure that
makes use of AI for the purposes of assisting organizations during the recruitment and
selection of job candidates. Many AI applications have been used. Job advertisements are now
optimized, published, and purchased using AI. Performance of advertisements and analysis of
market data is done using predictive algorithms. This is later followed by scheduling
interviews and placements. Algorithms and AI also make it easier to find the perfect job ad on
the right platform at the right time to reach the right candidate (Oswal et al,. 2021). Many
time-consuming tasks in the screening process have also been made easier to administer and
execute thanks to AI. For instance, extensive use of applicant tracking systems (ATS) can
shorten the screening process by allowing for effective resume storage, parsing, and keyword
search for large numbers of applications. Another example is that AI-enabled business process
automation can be used to create computer adaptive tests (CATs) that tailor test items to each
individual test taker (Tippins et al., 2006). When test takers answer a question correctly, the
question is tailored to their skill level If questions are answered correctly, a more difficult test
item will be presented and if a question is incorrectly answered, a simpler question will be
presented (Johnson et al., 2020).

3. Research Findings
AI application in recruitment and selection in forein countries
Technology, more specifically Artificial Intelligence is creating a revolution in the field of
recruitment and selection, it is even having a profound impact on the HR department in
general. According to LinkedIn, more than 76% Employers believe that AI will have a
dramatic impact on the recruitment industry. The application of Artificial Intelligence
technology in recruitment and human resource management in developed countries is very
popular. Mercer, a global recruitment consulting group, has conducted a few surveys and
researches, and 73% of HR executives predict a revolution in the field of recruitment within
the next 3 years. The most prominent is the trend of applying Artificial Intelligence in
recruitment and selection. Specifically, more than 88% of companies in the world have been
applying Artificial Intelligence (AI) in their human resource management department. In
which, 40% of companies have used AI in the recruitment process to screen and evaluate
candidates. In particular, businesses that soon applied AI in talent search said that the

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application of Artificial Intelligence in recruitment has brought efficiency and the quality of
human resources has also improved than before. In fact, the cost of screening candidates is
reduced by 75%, and the number of employees being laid off is reduced by 35%.

Businesses have used Artificial Intelligence technology in responding, evaluating, identifying

or asking for recruitment. For example, the business HeyTaco! provided software that uses
intelligent Artificial Intelligence in recruiting employees for small and medium-sized
businesses. Hey Taco! is highly appreciated in the field of providing software Productivity
Bots Software. Mengel (2018) listed more than 30 companies that offer recruitment services
for their customers using AI tools. Few examples of these companies are shown in Table 1.
Table 1:

Company URL AI Recruitment Tools

Lattice https://lattice.com/ Lattice's virtual assistant responds to group

management information. Also, set OKRs
and manage performance.

Paradox https://www.paradox.ai/ The virtual assistant Olivia helps recruiting

teams by automating tasks like screening,
scheduling, and responding to candidates.

BetterWorks https://www.betterworks.com/ Use Chatbot Betty to communicate and

respond to customer requests in search and
group management. It will help manage
performance and set team goals

Mya https://hiremya.com/ Mya's automated system will access the

FirstJob information of the candidates for easy
recruitment. It can refer candidates to
recruiters.

Xor https://www.xor.ai/ Chatbot helps recruiting on social

networking platforms like Messenger,

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 What's App and Slack. They can schedule
interviews and filter candidate profiles.

GoHire https://gohire.com/ The GoBe chatbot can increase candidate

engagement, increase candidate registration
rates, help screen candidates, and automate
interview scheduling.

 
The application of Artificial Intelligence in recruitment in forein countries encounters
extremely difficult barriers. AI requires a lot of data to be able to learn and mimic human
intelligence. During the hiring process, for example, AI uses machine learning to be able to
sift through a candidate's resume as if they were a real employer. Another dilemma is that the
AI can identify the right candidate for the position, but cannot determine the best fit for the
vacancy. AI can only screen candidates according to pre-programmed criteria. The best
candidate for the position is still needing evaluation from many aspects of the recruiter.

AI application in recruitment and selection in VN

Artificial Intelligence (AI) is a topic of interest for many company owners in Vietnam, but it
has not been widely implemented in commercial operations, particularly in recruiting and
development. Human resource development is a very delicate topic that necessitates a great
deal of human emotions, talents, and psychology. When the standard recruiting approach is no
longer successful and wastes a lot of time and money, it's time for firms to look for an
alternate and more efficient recruitment option. This is the moment to promote the potential of
AI - Artificial Intelligence, especially in the face of fast developments in the sphere of
recruiting and human resources in the digital era.

A number of Vietnamese businesses have seized this opportunity and developed a recruitment
platform using artificial intelligence, providing this technology to many other businesses. For
example, JobHop - a Vietnamese business that specializes in providing AI technology in
recruitment to other businesses. JobHop has supported more than 3000 Vietnamese businesses
in recruiting through AI technology. This recruitment AI technology optimizes the screening

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process and the access of candidates to jobs. Currently, many Vietnamese recruitment
websites have also applied AI in the recruitment process, mainly in the early stages of
recruitment. 

Advantages of Vietnam in applying Artificial Intelligence in recruitment.

First, Vietnamese businesses quickly grasp the recruitment trends of the world using the
world's AI platform. In fact, large domestic technology corporations and innovative start-ups
are accelerating investment and making solid steps in AI research in the recruitment sector.
FPT, a famous information technology service company in Vietnam, has invested 300 billion
VND (13.16 million USD) in AI Research and Development and related research since 2013.
VNPT has deployed 30 intelligent operation and monitoring centers (IOCs) in all provinces
across the country. Other corporations like Viettel, Vingroup... are also investing heavily in AI
research and development. They target companies that apply AI in operating power, smart cars
or natural language processing technologies, translating Vietnamese voice and writing with
high accuracy. But not only that, businesses also use AI as a support tool in the process of
recruiting and selecting human resources.

Second, the training of human resources in Vietnam has many innovative steps. Vietnam has
opened up the Artificial Intelligence industry in technology universities, applying AI
technology to teaching related subjects, ...This ensures that the output of human resources will
be of high quality, well-educated. In 2019, Uniᴠerѕitу of Science & Technologу first opened
the Artificial Intelligence major with a score of over 27 and a limited number of classes,
ensuring that when they graduate, these students will be a team of highly qualified, trained
professionals. creating a methodical and leading position for Vietnam's artificial intelligence.

Third, Vietnam is promoting the building of an Artificial Intelligence community. Many of the
country's financial funds have joined hands to commit to invest $425 million for the
Vietnamese AI community. The Fund will support start-ups to innovate and support the
training of human resources with expertise in the field of artificial intelligence. The Union of
AI Communities in Vietnam, contributing to bring Vietnam to the forefront of world powers,
officially launched with representatives including: Faculty Club - School - Vietnam Institute

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of Information and Communication Technology FISU; AI4Life Artificial Intelligence
research, deployment and application community; Digital Transformation Community -
Digital Transformation; Basic Machine Learning Community; Google Developer Community;
Business Intelligence Community; VietAI Community - Vietnamese Artificial Intelligence

Disadvantages of Vietnam in applying Artificial Intelligence in recruitment.

Vietnam's largest challenge is establishing a data infrastructure and doing computational
analysis. Vietnam's data infrastructure is still in its infancy; the country lacks a full data set,
the data is incomplete and unconnected, and access is restricted.

AI has become an important tool to create opportunities for Vietnamese businesses. If

technology businesses do not keep up with technology trends, they will become obsolete and
be wiped out. However, most small and medium enterprises almost do not have the ability and
capital to deploy AI in their daily operations, because the labor cost is currently too cheap
compared to the initial cost to deploy. technology disclosure.

Furthermore, Artificial Intelligence training majors in Vietnam are still in their infancy. In
Vietnam, the number of reputable colleges in this discipline is quite limited, and admission to
these schools is extremely difficult. Because the training of IT human resources is still weak,
each year Vietnam is short of 100,000 to 200,000 digital human resources. According to the
report of Nexus FrontierTech in 2019, Vietnam's AI human resources currently only meet 1/10
of the market demand.

Solutions for Vietnam in applying Artificial Intelligence in recruitment and selection. 

First, businesses need to rebuild their personnel apparatus, especially at the management level,
to learn how to adapt to a high-tech age. In addition, in the era of digital transformation, there
is a strong, comprehensive and influential digital transformation that affects the whole world.
Human resource managers need to innovate their thinking to improve their competitiveness as
well as find a team of qualified and highly qualified employees for the business. Every
business needs to have a way to effectively utilize and exploit the potential of using high

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technology such as Artificial Intelligence in recruitment, thereby identifying appropriate
resources and strategies.

Second, businesses need to focus on recruitment and selection. Enterprises need to improve
the quality of employees and develop digital human resources internally. This is an issue that
many businesses focus on and is considered a factor to improve competitiveness. Businesses
with a more professional and effective recruitment platform will have an advantage in finding
human resources. Many businesses have invested money and time in this work by sending
their staff to study at home/ abroad to improve their professional qualifications in building a
digital recruitment system. In addition, they can invite experts or advisors to directly train key
management departments to apply in business operations.

Third, businesses need to accelerate internal communication. Internal communication needs to

be enhanced so that employees can understand and grasp the standards and meet the
company's requirements in the 4.0 era. Businesses prioritize talent selection, and selection
standards in the digital era are also stricter and more demanding. In addition to those strict
standards, employees need to have an open vision and be ready to integrate and communicate
in multiple modes. Because, choosing the right human resources is an invaluable asset of an
enterprise.

Fourth, businesses need to build a suitable regime. To be able to retain talent, businesses must
have a clear set of remuneration policies and are geared towards the long-term benefits of
employees. With recruiting using a high-tech platform, employers should pay more attention
to compensation and insurance policies. Because, talented candidates will be attracted to
companies with good compensation and insurance policies. In the long run, it can be directed
to the division of profits and share ownership among employees to align personal interests
with the interests of the organization.

Finally, Vietnam should find specific solutions to build data infrastructure. Improving the
database will help businesses build AI-powered systems to use in recruitment and selection.
Because, AI requires a huge amount of information to be able to learn and imitate like human

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intelligence. Having a complete database helps businesses screen hundreds to thousands of
applications for a position.

4.  Conclusion, further research and limitation

 * Conclusion
The current research conducts on the impact of Artificial Intelligence (AI) on recruitment and
selection. This paper focuses on the application of Artificial Intelligence in recruitment and
selection in developed countries and Vietnam. Through the research, AI can be applied in
searching, screening and interviewing candidates for basic information. In addition, AI can
also act as a guide for candidates to learn about the job they want, the system can ask
questions and respond with information that candidates need. Employers believe that the
application of Artificial Intelligence will help speed up the recruitment process and save
resources. Using AI in screening job applications helps them find the right candidates with the
necessary skills. In addition, applying AI technologies in the recruitment process can enhance
the recruitment process's quality with a high accuracy level and reduce the human bias. In
Vietnam, businesses are taking the first step in applying Artificial Intelligence in the
recruitment and selection process, although it has just stopped at screening and candidate
search technology. Vietnam also has many advantages in applying AI technology in
recruitment. For example, the government has focused on establishing investment funds for
technology infrastructure, consolidating and building data networks, and adding high-tech
disciplines to the curriculum. As a new country to apply this smart technology, Vietnam faces
many difficulties such as low data infrastructure, lack of high-quality digital workforce,
inadequate training capacity in technology fields. fruit. In order to solve these difficult
problems, Vietnam needs to provide practical and highly effective solutions to what the study
has written above.

* Further research direction and Limitation

This research paper only talks about the application of Artificial Intelligence in the field of
recruitment and selection. Future research can be extended to other areas such as banking and
finance, or possibly in corporate and corporate governance. In addition, the Industrial
Revolution 4.0 also has the development of many types of intelligent technologies that we can

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exploit and use as the basis for future research. This study also has many limitations in the use
of research methods. Currently, the new research paper only uses the Literature review
research method - which is a method of collecting data or results of pre-existing research or
reputable articles. Therefore, the results of this study lack objectivity. In future research, we
can use other research methods such as using questionnaires or forms to collect primary data
for the research. Moreover, the study can develop research models such as Servqual quality
model, intended behavior model (TPB), rational action model (TRA), ...

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