From the supermarket to the job market: labels to make AI candidates’ screening process more transparent.

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2021

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Artificial Intelligence is rapidly entering most of the internal and external processes of companies, to increase efficiency, speed up operation, reduce human errors, implement data driven decision making. It is increasingly playing an important role also in the human resources department, particularly in the hiring process, to screen CV and select the most suitable candidates based on several desired factors.

However, for people who are not software engineers, and sometimes even for them, AI remains a ‘black-box’: once trained and implemented, it is very difficult, if not impossible, to trace back all the processes that led to the final decision, making it very hard to spot errors, patterns and biases.
“Is a résumé screener identifying promising candidates, or is it picking up irrelevant, or even discriminatory, patterns from historical data? Is a job seeker participating in a fair competition if he or she is unable to pass an online personality test, despite having other qualifications needed for the job?”

To answer this questions, Julia Stoyanovich (Wall Street Journal, 22/09/2021) proposes an innovative and kind of funny solution, starting from something very common: nutritional labels.
Firstly, exactly as it is in every product we buy, a job description should list all the ‘ingredients’ the optimal candidate should have,such as degree requirements, specific skills and the years of experience, and how the assessment will be carried out, so all the candidates can know in advanced what the company is looking for. Then, if the candidate is rejected, the AI would use this label to show the candidate which criteria he did not meet (or met less than other candidates), to show exactly what drove the decision. This I believe is the most innovative part of Julia’s solution.
The label could also provide actional information, allowing the candidate to modify some data if needed, and inform them of the possibility of making changes for the assessment methods if they discriminate them (a blind person could ask for an alternative method to submit his application instead of a video interview, where eye contact is a requirement).
The rejected candidate would therefore get a “decision label” along with the rejection, showing how their qualifications measured up to the job requirements; how he/she compared with other job seekers; and how information about these qualifications was extracted.

Until now the focus was only on the candidate’s potential benefits, but this solution would also give employers vital information: since AI’s judgment calls are opaque, employers often don’t know what data are used for screening, and how they are analyzed to come up with the final decision. The labels can show managers the factors that the AI is using to screen candidates and let them decide if those factors need to be changed.

Hiring process is complex: there are several steps and tradeoffs between objective criteria and subjective factors.
AI could help alleviate some of this complexity, but it is important to not forget that this tool works to specification, and these specifications must be clear. We can use AI effectively to identify clear requirements-based matches, but it cannot exercise discretion or apply subjective judgment. These labels may actually help identifying where the automatic and impersonal screening can be used, and when it needs to leave space to personal decision of human resources.

Reference( https://www.wsj.com/articles/hiring-job-candidates-ai-11632244313?mod=management_lead_pos5 )

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The power of the platform.

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2021

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Apple is not a videogame company. So how come that in fiscal year 2019 it ranked more profits in the videogame industry than Microsoft Corp. with his Xbox, gaming giants such as Nintendo Co. and Activision Blizzard Inc., and PlayStation maker Sony Corp., all combined? (Wall Street Journal)

The true weapon responsible for the $8.5 millions operating profits is the App Store, Apple’s digital marketplace where other companies and developers can sell and distribute their games, for a ‘small’ fee equal to 30% of their sales.

Useless to say that competitor right now do not have many alternatives to gain access to the huge market of iOS and need to surrender to the tech giant. 

Once again, this shows how fundamental is the role of platforms in today’s economy, and for digital companies in the first place: products’ quality has been relegated to a secondary role, and competition now consists in a war for attracting and retaining users. Being able to restrict the access to such a wide customer segment, put Apple in a dominant position with respect to his rivals.

Apple’s CEO Tim Cook certainly does not overlook this opportunity, and he introduced in the new iPhone 13 Pro screen upgrades aimed at giving a smoother video experience, a feature particularly appealing to gamers.

However, even a market leader like Apple cannot afford to relax, and continuous threats are arising from competitors such as Facebook Inc., Microsoft and “Fortnite” maker Epic Games Inc., heavily investing in what appear to be the future technological frontier: virtual reality.

If they were to develop such technology, they could be able to overcome the App Store gates, and appeal to a much wider market: many different digital activities (search, shopping, live events, …) would indeed be transferred to the videogame’s world, appealing to a much wider user base.

Industry global revenue from videogames is expected to almost double to $198 billion in 2024 compared with 2016, according to estimates by technology consulting firm Activate Inc., with mobile games driving the growth with $103 billions of expected revenues in 2024 (as estimated by Activate Inc consulting firm).

An additional risk that could disrupt Apple’s role as gatekeeper between the gaming world and its more than 1 billion iPhone users is represented by legislation, court order or regulatory action.

In August 2020, Epic Inc filed a lawsuit against Apple claiming the company held an improper monopoly over distribution of software on its mobile devices and forced developers to use its in-app purchasing system.

Even though Apple claims about the fairness of his fees and the existence of alternative ways for users to play games were accepted, the judge ordered the tech giant to let developers inside their apps advertise alternative, cheaper payment methods that exist outside of Apple’s App Store. 

To conclude, power in the digital industry comes from the ability to reach users, and most of all to prevent rivals to reach those users. However, this environment is very dynamic and, thanks to the exponential growth and expansion of its actors, increasingly scrutinized.

All players, even a giant like Apple, need to keep innovating, to avoid the risk of losing their relevant position as fast as they gained it.

Reference: https://www.wsj.com/articles/apple-doesnt-make-videogames-but-its-the-hottest-player-in-gaming-11633147211?mod=business_lead_pos1

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