AI in Recruitment: Optimizing Candidate Search with RAG Chatbot
85%
Decrease in Candidate Search Time99%
Accuracy in Information3x
Faster Candidate SelectionCustomer Overview
Our client, a recruitment giant, followed a candidate search process that was time-consuming and cumbersome. It resulted in inefficiencies and low productivity, impacting their bottom line. They wanted to improve their services by optimizing candidate search.
Project Overview
The client needed a more efficient method to identify relevant resumes, surpassing the limitations of traditional filters and searches. They envisioned a Chat-based solution, where recruiters could query in natural language and quickly get information about candidates with required skills and experience.
Challenges
Understanding complex layouts of resumes to extract and categorize relevant data into skills, experience, etc., and accurately retrieving information from the index store to provide an appropriate response to the user’s question.
- The solution must handle multiple complex layouts, formats, and structures of numerous fancy resumes, it is difficult to parse them correctly.
- The information parsed and extracted from the resumes must be categorized and grouped accurately into skills, experience, qualifications, personal information, project details, professional certifications, and other applicable parameters.
- The solution must understand user questions and identify entities (like skills, qualifications, projects, experience, etc.), and using that information it must search/retrieve candidate information to feed into the LLM for response synthesis.
- Not restricted to merely candidate search, the solution must enhance other processes in recruitment like creating candidate profiles.
Solution
Combining our Vision AI and Generative AI expertise, we developed a RAG-powered Chatbot solution to facilitate the natural language-based candidate search process, enabling AI in Recruiting for enhanced accuracy and speed.
- We used both Vision AI and Gen AI techniques to overcome the challenge of parsing diverse resume formats and complex layouts and structure the unstructured data of the resume document.
- We leveraged a Vision AI model that understands the resume document’s layout and detects different sections within that document. Then, using an OCR AI model, we extracted the text within these detected sections.
- Using a Gen AI model, we grouped the data extracted by OCR into categories like skills, project details, qualifications, personal information, etc., and created JSON for further processing.
- We indexed these JSON files per candidate into the OpenSearch vector store as both an embedding and normal text so that we could later perform Hybrid Search i.e. Vector plus Keyword-based Search.
- When a user queries the Chatbot, it understands the query, retrieves candidate information from OpenSearch using Hybrid Search & sends it to the LLM to synthesize the response based on the Question and Context.
Benefits
The Background Removal tool we developed revolutionizes AI in recruitment and provides the following advantages to our client:
- The AI-powered Chat-based solution drastically reduces the time recruiters spend searching for relevant candidates.
- The system handles diverse resume formats and complex layouts. Provides accurate and contextual candidate information.
- With user-friendly interactions, improved search results, and data insights, recruiters make more informed and quick decisions.
- Benefiting from easy candidate search, recruiters focus on tasks needing human intervention, enhancing recruitment services.
Technology
- GPT 3.5
- OpenSearch
- Unstructured
- LlamaIndex
- Python
- FastAPI
- Angular
Industry
- Recruitment & HR

Conclusion
The AI-powered chat-based solution streamlined the recruitment process by significantly reducing candidate search time and improving information accuracy. By managing diverse resume formats and providing contextual insights, it enabled quicker, more informed decision-making, allowing recruiters to focus on tasks that require human intervention. Find out how our AI development services can help your business.
Frequently asked questions
How is a RAG-based chatbot different from traditional resume search tools?
A RAG-based chatbot differs from traditional resume search tools by understanding natural language queries and retrieving contextually relevant resume data before generating answers. This replaces rigid keyword filtering with faster, more accurate candidate discovery based on skills and experience.
Can an AI recruitment chatbot understand complex hiring queries?
Yes. AI recruitment chatbots can understand complex hiring queries by interpreting intent, context, and multiple criteria such as skills, experience, domains, and projects—returning accurate candidate insights without manual filtering.
Does AI-based candidate search reduce recruiter bias?
Yes, AI-based candidate search can reduce recruiter bias by evaluating candidates on skills, experience, and qualifications instead of surface-level attributes. However, ongoing human oversight is essential to ensure fairness and prevent inherited data bias.
How accurate is AI when extracting skills and experience from resumes?
AI can extract skills and experience from resumes with high accuracy when it combines layout detection, OCR, and language models. This approach handles diverse formats and validates context, resulting in more reliable skill and experience categorization than keyword-based parsing.
How does hybrid search improve candidate discovery?
Hybrid search improves candidate discovery by combining exact keyword matching with semantic understanding. This helps recruiters find candidates who match both specific requirements and related skills, even when resumes use different terminology.
Is candidate data secure when using AI-powered recruitment tools?
Candidate data can be secure in AI-powered recruitment tools when systems use encryption, role-based access controls, and secure data storage. Compliance with data protection standards and regular audits further ensure privacy and responsible data handling.
Can an AI chatbot support tasks beyond candidate search?
Yes. AI chatbots support tasks beyond candidate search, including resume summarization, candidate profiling, skill gap analysis, and rediscovering internal talent. This reduces manual work and helps recruiters focus on high-value decisions.
Why are recruitment firms adopting RAG-based AI chatbots now?
Recruitment firms are adopting RAG-based AI chatbots to deliver faster, more accurate candidate search using real, up-to-date resume data. RAG reduces search time, scales hiring operations, and improves trust by grounding AI responses in verified internal data.