In this insightful interview, Diana Tsai, CEO and co-founder of Upwage.com, delves into the world of AI-powered interviewing technology and its transformative impact on the hiring process. Upwage has developed an advanced AI interview platform that’s proving to be a game-changer in the recruitment industry, with impressive results in reducing turnover and improving the overall quality of hires.
Diana begins by explaining the concept of agentic AI, which is at the core of Upwage’s technology. Unlike co-pilot AI that works alongside humans in real-time, agentic AI can perform tasks independently. In the context of Upwage, this means AI agents can conduct detailed behavioral interviews and screenings without constant human guidance. These AI agents function as junior team members managed by recruiters, working 24/7 to collect, structure, and analyze information from candidate interviews.
The Upwage platform consists of two main AI agents working in tandem:
- AI Interviewer: This agent conducts automated interviews in any language, using probing techniques and STAR (Situation, Task, Action, Result) interviewing methods. It’s trained to be EEOC compliant and can be tuned by recruiting teams to match specific roles and company requirements.
- AI Analyst: This agent analyzes the interviews conducted by the AI Interviewer, creating a consistent scorecard for each candidate. It helps eliminate bias in the hiring process by evaluating skills, behaviors, and competencies based on predefined criteria set by the TA leaders.
One of the most impressive aspects of Upwage’s technology is its proven ability to reduce turnover. Diana shares a case study where a healthcare company using Upwage’s AI retention-predicting interviewer saw a significant decrease in turnover rates from 53% to 35% in their call center roles. This resulted in substantial cost savings for the company, amounting to $882,000.
The implementation of Upwage’s technology is designed to be seamless and flexible. It can be integrated into existing applicant tracking systems (ATS) or used as a standalone solution. The platform includes a Chrome extension that allows recruiters to view and sort candidate results directly within their ATS.
Diana emphasizes that Upwage’s AI technology is not meant to replace human recruiters but to augment their capabilities. By handling time-consuming screening tasks, the AI allows recruiters to focus on more strategic aspects of their role, such as building relationships with candidates and hiring managers. This shift transforms recruiters into what Diana calls “relationship architects.”
The interview also addresses potential concerns about AI in hiring, particularly regarding compliance and regulations. Upwage has taken a proactive approach by creating an AI Trust Center, which provides comprehensive documentation on how their technology complies with various local, state, and federal regulations. This includes detailed information on data protection, security, and AI governance.
One of the key benefits of Upwage’s AI interviewing technology is its ability to provide a consistent and fair candidate experience. The AI interviewer is designed to be patient and emotionally intelligent, asking probing questions to draw out detailed responses from candidates. This approach helps level the playing field for candidates who may not be as skilled at marketing themselves in traditional interviews.
Diana shares an example of how the AI interviewer interacts with candidates, demonstrating its ability to ask follow-up questions and provide encouraging feedback. This creates a positive experience for candidates, with Upwage reporting a composite score of 9.01 out of 10 based on 17,000 candidate feedback responses.
The flexibility of the AI interviewer is another significant advantage. Candidates can complete their interviews at their convenience, even pausing and resuming as needed. This feature has been particularly well-received by candidates who appreciate the opportunity to think through their responses without time pressure.
Looking to the future, Diana outlines Upwage’s vision for the evolution of AI in recruitment. She describes three waves of AI transformation:
- Wave 1 (2025-2027): The transformation of recruiting tasks, with AI-driven interviews becoming dominant in hiring processes.
- Wave 2 (2028-2029): The transformation of talent works, introducing AI managers to coordinate teams of AI agents and streamline workflows.
- Wave 3 (2030 and beyond): The transformation of the labor market, where traditional job search methods become obsolete, replaced by AI-powered matching and universal AI interviewers.
This forward-thinking approach is driven by Upwage’s mission to use AI to combat the potential disruptive impacts of AI and automation on the job market. Diana and her co-founder envision creating an AI safety net that can ensure rapid redeployment of talent as industries are reshaped by technological advancements.
To further educate and engage with the recruitment community, Upwage is releasing a book titled “AI for Good,” which explores how TA leaders can leverage AI for positive outcomes in hiring. The book combines near-future scenarios set in 2035 with current technological insights and case studies, aiming to shift the narrative around AI in recruitment towards a more optimistic and proactive stance.
Additionally, Upwage is offering a free Agentic AI Crash Course, designed to give TA professionals hands-on experience in building AI agents and understanding the practical applications of AI in recruitment. This course reflects Upwage’s commitment to not only developing AI technology but also empowering recruiters to effectively use and understand these tools.
Throughout the interview, Diana emphasizes the importance of transparency and ethical considerations in AI-powered recruitment. Upwage’s approach includes:
- Providing clear explanations of how their AI evaluates candidates
- Allowing TA teams to fine-tune the AI’s criteria and definitions
- Ensuring that hiring managers can understand the reasoning behind AI-generated assessments
- Continuously refining their AI models based on feedback and real-world outcomes
The impact of Upwage’s technology extends beyond just improving hiring efficiency. By reducing turnover and improving the quality of hires, companies can see significant bottom-line benefits. In some cases, Upwage’s AI has even been able to predict high performance in revenue-generating roles, potentially increasing a company’s revenue by millions of dollars.
Diana also touches on the potential for AI to improve diversity in hiring. By engaging with a larger portion of the candidate pipeline and providing a consistent interview experience, AI can help surface qualified candidates who might have been overlooked in traditional screening processes.
The discussion also covers the potential for AI to assist with culture fit screening. Upwage’s technology can be adapted to assess candidates based on a company’s specific cultural values and mission, creating a more holistic evaluation process that goes beyond just skills and experience.
As the interview concludes, it’s clear that Upwage is at the forefront of a significant shift in the recruitment landscape. Their AI-powered platform is not just a tool for efficiency, but a comprehensive solution that addresses many of the longstanding challenges in hiring, from reducing bias to improving candidate experience and ultimately driving better business outcomes through improved hiring decisions.
The future of recruitment, as envisioned by Upwage, is one where AI and human expertise work in harmony. By automating time-consuming tasks and providing data-driven insights, AI frees up human recruiters to focus on the aspects of their role that require emotional intelligence, strategic thinking, and relationship building.
As companies continue to grapple with the challenges of finding and retaining top talent in an increasingly competitive market, solutions like Upwage’s AI interviewing platform are likely to become increasingly valuable. The ability to conduct thorough, consistent, and unbiased initial screenings at scale, while simultaneously improving the candidate experience, represents a significant leap forward in recruitment technology.
However, as Diana emphasizes throughout the interview, the goal is not to replace human recruiters but to empower them. By providing recruiters with powerful AI tools and freeing them from repetitive tasks, Upwage aims to elevate the role of recruiters to that of strategic talent advisors and relationship architects.
As we look towards a future where AI plays an increasingly prominent role in all aspects of business, including recruitment, companies like Upwage are leading the way in demonstrating how this technology can be harnessed for positive outcomes. By focusing on ethical implementation, transparency, and tangible business results, they are helping to shape a future of recruitment that is more efficient, fair, and effective for both employers and job seekers alike.
