Thanks to artificial intelligence (AI), the hiring landscape is undergoing a significant transformation. While AI offers the potential to streamline the process, remove bias, and identify top talent, it also presents a new set of challenges. Verifiable digital credentials can help human resources departments wield this double-edged sword of AI in hiring to take advantage of the benefits without getting hit by the downfalls.
How AI Can Benefit Hiring
- Improved Efficiency: AI can automate resume screening, identifying keywords and experiences that support future success, thereby freeing up time for HR professionals to focus on in-depth interviews.
- Matching Skills to Needs: AI can analyze skills mentioned on resumes and match them with specific job requirements, leading to better candidate placements.
- Reduced Bias: AI can analyze resumes based on pre-defined criteria, potentially mitigating unconscious bias in the selection process. Of course, this assumes the AI was trained in a way that does not reinforce or exacerbate biases and should be monitored and evaluated with that in mind.
The Rise of Generative AI (GenAI) in Resumes
Despite the benefits, a recent survey by StandOut CV revealed a concerning trend: nearly 73% of working adults in the US would consider using AI tools to embellish or lie on their resumes. This surge in AI-powered resume creation calls into question the authenticity of candidate qualifications. Especially when they can be hard to detect.
Consider what that means for the benefits AI can provide. The time savings of having AI match keywords on resumes are lost if those keywords are embellished on resumes to match the job description.
In one example, Arizona State University saw a 300% increase in applications for student positions in their Tech Hubs but also noticed many of those resumes were written by AI to match job descriptions.
Digital credentials can provide a solution by limiting the opportunity to embellish credentials and instead providing in-depth insight into what a candidate can do in a format that is easily verifiable. Being machine-readable also means the AI can match the skills embedded in those Verifiable Credentials to the job requirements, even before the interview process.
Finally, when considering equity, digital credentials can come from anywhere, including four-year degree programs, community colleges, professional development courses, certification programs, extracurricular activities, and more. Any learner can get credit for the knowledge and skills they’ve earned, regardless of how or where, and the AI can identify and verify the skills relevant to the position. Digital credentials, when paired with AI, also have the potential to take human bias out of the screening process, evaluating only the skills applicants can prove they have. It is still worth repeating that this is the potential of AI and digital credentials, but AI can have its own bias that needs to be considered and monitored.
Verifiable Credentials: Countering AI-Fueled Embellishments
1EdTech Consortium (1EdTech) oversees the evolution and certification of two open and verifiable digital credential standards that can help HR departments wield this double-edged sword and that are already widely adopted in the education and professional development communities.
- Open Badges 3.0: These badges act as visual representations of a specific achievement, containing metadata about the earner and issuer and evidence of the accomplishment. Think of them as digital certificates you can easily share electronically and display on platforms like portfolios or social media, but that can also be opened to illustrate further what the learner can do.
- CLR Standard® 2.0 (Comprehensive Learner Record Standard™): CLRs provide a more detailed record of a learner's achievements and experiences. They can encompass information like academic transcripts, certifications, skills assessments, and even microcredentials earned through online courses. Like Open Badges, CLRs are issued according to the W3C Verifiable Credentials standard.
The use of open data standards ensures that verifiable credentials are machine-readable (not just flat PDFs) and electronically verifiable. This empowers employers to directly access and confirm a candidate's skills, competencies, degrees, and work experience through the credential, helping to ensure that resumes accurately reflect a candidate's abilities and avoiding AI-generated embellishments.
Collaboration for Open Data Standards: Building a Trusted Ecosystem
Educational institutions, workforce development and training organizations, and other training providers can all benefit from open data standards for verifiable credentials. These standards, like those promoted by 1EdTech, save time and money by ensuring credential data is understandable and easily shareable across platforms. Imagine a scenario where employers can seamlessly verify a coding boot camp completion or language proficiency certification issued by different institutions—all thanks to the shared language of open data standards.
Open forums facilitated by organizations like 1EdTech allow for discussions and collaboration on the wider adoption of Verifiable Credentials. These conversations should center around the learners and earners, not just the technology itself. The focus should be on empowering individuals to own and manage their learning journeys while ensuring employers have access to trustworthy and verifiable information to make informed hiring decisions. This collaborative approach fosters a trusted ecosystem where both learners and employers benefit from the transparency and efficiency offered by Verifiable Credentials.
Collaboration for Lifelong Learning
The ever-changing skill landscape necessitates a culture of lifelong learning. Organizations can collaborate in several ways to promote this:
- Learner-Centric Approach: Focus on creating learning opportunities that are accessible, engaging, and relevant to individual career goals.
- Skills Gap Analysis: Collaborate with industry partners to identify current and future skills gaps. This allows for the development of targeted training programs to ensure a ready workforce.
- Microcredentialing: Partner with educational institutions or online platforms to offer microcredentials for in-demand skills. These bite-sized learning opportunities allow individuals to continuously upskill and showcase their latest achievements.
All of these achievements can be documented with verifiable digital credentials.
Conclusion: A Human-Centered Future for Hiring
By acknowledging AI's benefits and drawbacks in hiring, employing strategies like verifiable credentials, taking a human-centered approach, and fostering a culture of lifelong learning, we can create a more efficient, fair, and future-proof hiring system that truly identifies the best talent for the job.
In the future, AI can be used to automate time-consuming tasks, analyze data to identify promising candidates, personalize the hiring experience, and reduce bias in the hiring process. However, the human element remains vital. Skilled interviewers, probing questions, and a focus on cultural fit will continue to be essential for making informed hiring decisions. Digital credentials can simply be used to create a more qualified pool of candidates for the interview process.
The ideal outcome is a successful marriage of innovative technology and human expertise, leading to a more effective and trustworthy hiring process for everyone involved.
The 1EdTech community will dive deeper into digital credentials and how to support student and HR success at the 1EdTech Digital Credentials Summit, March 3-5, 2025, in Phoenix, Arizona.
About the Author
Rob Coyle
As 1EdTech’s program manager for digital credentials, Rob Coyle is committed to expanding the success of digital credentials with Open Badges and the Comprehensive Learner Record Standard to support learning and acknowledge the skills and competencies mastered through formal and informal education and life experiences. Rob recognizes the limitless opportunities that arise from meaningful discussions between education institutions, edtech suppliers, and learning providers to understand the needs of all stakeholders.
