AI Can Spot Skills, But Only People Can Spot Potential: Rethinking Hiring in the Algorithm World

In a world where AI promises to revolutionize everything, including the hiring process, it’s tempting to believe algorithms alone can spot your next star engineer. Automation is rapidly raising the bar for sourcing, screening, and matching talent at scale. Staffing companies tout their algorithms, boasting about “unbiased screening” and “faster shortlists.” According to research, nearly 87% of large U.S. organizations now leverage some form of AI to scan, sort, or match applicants, a number expected to rise as labor shortages and remote work make high-volume hiring even more daunting. 

But beneath the hype, a critical question lingers for founders and hiring leaders: Can you really trust AI alone to find the engineers, creators, and collaborators who’ll drive your company’s success? Or is there something essential still missing when we reduce people to data points?

Machines Can Help, But People Decide

AI has undoubtedly transformed early-stage hiring. Algorithms sort thousands of resumes in seconds, flag skills, and match keywords against job descriptions. For high-volume roles, these systems can slash time-to-interview and help reduce certain forms of unconscious bias.

Yet, our experience at BetterEngineer (and the stories we hear from clients burned by “AI-only” lists) reveals a hard truth: automation without intuition risks missing the very individuals who’ll make the biggest impact. Candidates become lines of code; teams become collections of credentials, not communities.

This theme echoes throughout our insights. In one of our recent posts, we discussed how efficiency and scale (AI’s greatest strengths) can backfire if used in isolation. The key to progress, we argue, is using technology to support deeper human understanding, not replace it. When it comes to hiring, this balance is especially vital.

Hidden Risks: The Best People Aren’t Always in the Data

To be clear: at BetterEngineer, we believe smart use of AI can add tremendous value. Screening for baseline technical fluency makes it possible to efficiently identify a talent pool, especially as remote work widens the field. But AI is only as good as its programming and inputs, and it cannot substitute for the experience and discernment of human specialists.

It’s tempting to think that simply adding more automation leads to better hiring. But the reality is more complicated: while AI can quickly flag technical fluency or match keywords to job descriptions, it is also prone to hidden risks that can hurt your talent pipeline. 

The danger? Truly exceptional candidates get filtered out by rigid, conventional criteria. Multiple recent studies from Harvard have confirmed that AI algorithms, particularly in hiring, exhibit bias that disproportionately screens out capable candidates who lack a "standard" background. The research shows that AI systems are often trained on historically biased data, leading them to de-prioritize or reject career changers, unconventional thinkers, and self-taught engineers. 

And perhaps most critically: Skills don’t equal mindset. Our recent hiring series emphasizes that “checkbox” hiring misses the intangible qualities, like adaptability, growth drive, and collaborative spirit, that power high-performing teams. Those qualities can’t be screened with an algorithm.

At BetterEngineer, we see where AI shines and where it stumbles. Technology is invaluable for scaling up searches and automating first-pass screens. But the real magic happens when human specialists join the process: engaging with candidates, understanding their journeys, and uncovering strengths invisible to code.

Put simply: Automation helps you move faster, but only people ensure you’re heading in the right direction.

What Still Requires a Human Touch?

Here’s where even the best AI falls short, and where our approach at BetterEngineer stands apart:

1. Assessing Authenticity:

Only humans can read between the lines, catching moments of humility, humor, or genuine excitement that signal a truly great fit.

2. Understanding Team Dynamics & Culture Fit:

Culture is subtly shaped by personalities, communication styles, and unwritten norms. Human recruiters experience these signals firsthand and can spot synergy (or tension) that no algorithm can compute.

3. Spotting Future Potential:

A resume might reveal past roles, but only human conversation can surface hidden talents, upskilling drive, or leadership traits that will flourish in your environment.  

4. Evaluating Soft Skills:

Empathy, adaptability, and creative problem solving aren’t easily measured by tests. They show up in nuance, stories, and how someone relates, not what a résumé says.

5. Navigating Complex Journeys:

Real lives are messy. Humans can recognize when a career break signals resilience, when a winding path is a strength, not a flaw, and when a unique background brings invaluable perspective to your team.

6. Coaching and Advocacy:

True hiring is two-sided. Our recruiters coach candidates through the process, advocate for the right fit (not just a quick placement), and ensure both client and candidate feel seen and heard.

Candidates or Scammers? Automation Helps Both Sides of the Table

It’s important to emphasize it’s not just recruiters embracing new tech; candidates (and bad actors) are using AI in increasingly sophisticated ways. On the surface, that might mean applicants using AI tools to generate polished résumés or “perfect” interview answers. But the risks run deeper: as we explored in our recent blog post about video scams, even seasoned professionals are being duped by AI-generated deepfakes. One infamous case saw a finance worker wire $25 million to scammers during a video call, convinced he was speaking with real colleagues—none of whom were actually present; all were deepfake AI recreations.

Scenarios like this highlight that “automation-only” hiring doesn’t just risk overlooking great people; it can expose businesses to entirely new categories of deception and loss. The solution? Robust, human-centered evaluation. 

Smart Hiring Blends Tech With Human Insight

AI will keep evolving. There’s no denying its power to boost efficiency and break open new pools of global talent. But as leaders, we must remember the goal isn’t just to fill seats. It’s to build teams of humans who learn, grow, and create value together.

At BetterEngineer, our hiring specialists are present at every hiring step: from intake to final offer, ensuring both the client and the candidate see each other as partners, not transactions.. We blend cutting-edge tools with deep personal investment, with deep personal investment, so our clients never have to choose between speed and substance. Our process is rigorous, but always human-led.

Want to learn how a human-first, tech-enabled approach can transform your hiring? Let’s connect.6.