Better Explaining the Benefits Why AI?

Abstract

Algorithm-based selection tools are increasingly finding their way into a company’s selection processes to increase efficiency. However, previous studies point to adverse applicants’ reactions. Despite the increasing popularity of algorithm-based selection tools, knowledge about what actions can be taken by companies to increase AI acceptance is still in its infancy, even though multiple studies show that the usage of technology-meditated selection tools causes negative applicants’ reactions. Therefore, this study aims to investigate the applicant’s perception when algorithm-based selection tools are used and then thoroughly identify actions to efficiently implement and use these tools without triggering negative applicant reactions. Using a scenario-based-between-subject design with employees (N=200), systematically varying the information on the company website about the reason why the company uses AI. We found that the usage of AI in selection decreases the perceived fairness, personableness perception and increases the emotional creepiness. Moreover, we found that transparency about the reasons why the company uses AI in the selection process in video form seems equal to a human evaluation in terms of fairness, creepiness, and personableness perception. In turn, fairness and personableness perception, mediate the association between an algorithm-based selection process and organizational attractiveness and the intention to further proceed with the selection process.