Why 80% of Indonesian Companies Don't Use AI for Recruitment

According to a Jobstreet survey in 2024, 80% of surveyed Indonesian companies chose not to use artificial intelligence (AI) in recruiting employees.

Of this group, 44% avoided using AI due to concerns about the loss of the human touch.

Other reasons for not using AI included increased costs, the risk of bias, lack of sufficient knowledge, and compliance issues.

The following is a complete list of reasons why Indonesian companies do not use AI in the recruitment process:

• Lack of human touch and personalization: 44%
• Increased costs: 40%
• Not needed in the recruitment process: 39%
• Risk of bias: 38%
• Lack of knowledge or access to AI applications in the recruitment process: 34%
• Errors caused by AI: 27%
• Ethical concerns: 15%
• Compliance issues: 12%

The survey also found that 71% of Indonesian companies now consider candidates' AI knowledge during the recruitment process.

However, most respondents viewed it as an added value to the candidate's primary qualifications, not as a primary requirement.

"These companies generally assess AI knowledge through candidate self-introductions, technical questions, or by evaluating projects or examples of work in the candidate's portfolio," wrote Jobstreet in its Recruitment, Compensation & Benefits Report 2025.

Jobstreet surveyed 1,273 recruitment staff from small, medium, and large companies in Indonesia, across various business sectors and industries. Data collection was conducted online in September-October 2024.

(Read: Challenges Faced by the Global Marketing Team When Using AI)