The Potentially Harmful Effects of Artificial Intelligence on Recruitment in Real Estate

Eric Bernard has been a real estate talent scout at Performance Recruitment since 2019. Passionate about culture and well-being at work, he leverages over 30 years of experience as a commercial real estate professional in management, brokerage, lending, and business development roles. He has extensive knowledge of various real estate and non-residential construction professions.

Artificial Intelligence (AI) is becoming an essential tool in many sectors, and real estate is no exception. In particular, in recruitment, AI is seen as a means to accelerate processes, reduce costs, and improve efficiency. However, this growing reliance on automation and data analysis technologies also carries significant risks. While the advantages of AI are often highlighted, it is essential to focus on the potentially harmful effects it can have on recruitment in the real estate sector.

The Potentially Harmful Effects of Artificial Intelligence on Recruitment in Real Estate

Algorithmic Bias and its Impact on Diversity

One of the most associated dangers of using AI in recruitment is the reproduction of algorithmic biases. These biases, present in the historical data used to program AI systems, can lead to unintended discrimination against certain groups. For example, if men were predominantly recruited for managerial positions in real estate in the past, an algorithm trained on such data could automatically favor male candidates, excluding qualified women.

Moreover, typical candidates whose backgrounds do not match the standard criteria defined by the algorithm risk being filtered out, even if they possess valuable skills. By locking the recruitment process into historical patterns, AI could slow down the evolution of diversity in the sector, a crucial element for the dynamism and creativity of businesses.

Lack of Transparency in Automated Decisions

The opacity of algorithms is another major issue. Recruiters, like candidates, may sometimes struggle to understand why an algorithm rejects an application or, conversely, favors one. AI systems often function as "black boxes," where decision-making processes are difficult, if not impossible, to decipher. This raises critical questions about the transparency of the recruitment process.

Furthermore, excessive reliance on AI could weaken the role of human judgment. Recruiters may become overly confident in the decisions made by algorithms, reducing their own ability to evaluate candidates subjectively and with nuance. In a field as relational as real estate, where human and interpersonal skills are essential, this automation of decisions could harm the quality of recruitment.

Privacy Concerns and the Collection of Sensitive Data

The growing use of AI for massive processing of personal data raises ethical concerns about candidates' privacy. Many companies are collecting information not only from resumes and cover letters but also through more invasive technologies such as video interview analysis, which scrutinizes facial expressions and body language.

Although these methods are sophisticated, they present the risk of misinterpreting certain behaviors. Moreover, biometric analysis is seen as an intrusion into individuals' private spheres, intensifying the feeling of surveillance and questioning the respect for personal data.

Reduction of Human Interactions

One of the attractions of AI lies in its ability to automate certain repetitive tasks, such as sorting resumes or organizing interviews. While this can speed up the recruitment process, it can also reduce human interactions, which is problematic in a sector like real estate, where interpersonal relationships are at the heart of the job.

Indeed, when AI manages much of the process, recruiters interact less with candidates, which can weaken the human dimension of recruitment. In a field where intuition, empathy, and the ability to judge interpersonal skills are fundamental, this disengagement from human involvement could lead to hires that are less suited to the real needs of the company.

The Risk of Standardizing Profiles and the Loss of Creativity

By relying on AI to filter candidates, real estate companies risk favoring standardized profiles that match rigid criteria defined by algorithms. This could lead to a diminishing of the diversity of profiles, with increasing homogeneity in teams, to the detriment of the richness that atypical talents can bring.

Creativity and innovation, essential qualities for a sector in constant change like real estate, could be undervalued. An algorithm might struggle to identify promising talent if those candidates do not tick the traditional boxes of automated selection criteria.

Conclusion: Finding a Balance Between AI and Human Intervention

While artificial intelligence offers undeniable advantages in terms of efficiency and speed in real estate recruitment, it is crucial to understand and anticipate its potential pitfalls. The key lies in a balanced use of AI, where technology complements human intelligence, not replaces it. It is essential to maintain vigilance regarding biases, transparency, and respect for personal data to preserve a fair and human recruitment process.

Recruiters in the real estate sector must use these technologies with discernment and never lose sight of the fact that the human element remains central in assessing candidates and in building diverse and high-performing teams.

Article originally published on page 41-43 of Gestion Immobilière magazine.

Éric Bernard has been a real estate talent hunter with Performance Recuitment since 2019. Passionate about culture and well-being in the workplace, draws on more than 30 years as a commercial real estate professional in roles as manager, broker, lender and business development manager. He has a vast knowledge of the different trades in real estate and non-residential construction.