Communicating the benefits and risks of AI technology in hiring: implications for organization–public relationships

Purpose As artificial intelligence (AI) has become increasingly accessible, a growing number of organizations have begun to adopt AI in hiring. Despite the increasing use of AI in hiring, little is known about how organizations can effectively communicate with their stakeholders about their AI use. Using gain and loss message frames and organization–public relationships (OPRs) as theoretical frameworks, this study tests the impact of exposure to job advertisements that address AI use on individuals’ attitudes and behaviors toward organizations using AI during hiring. Design/methodology/approach We conducted a 2 (message frames: gain vs loss) × 2 (benefits of using AI in hiring: faster hiring process vs reduced unconscious hiring bias) between-subjects experiment using a Prolific online panel ( N = 224). Participants were randomly assigned to one of four conditions and viewed a fictitious company’s job advertisement that varied in message frames and benefits of using AI. After viewing the experimental stimuli, participants answered questions about OPRs, attitudes toward the company and positive word-of-mouth (WOM) intentions. Findings Loss-framed messages appeared as more effective in increasing OPRs, favorable attitudes toward the company and positive WOM intentions. OPRs positively mediated the impact of exposure to loss-framed job advertisements on attitudes and positive WOM intentions. The benefits of using AI in hiring moderated the impact of loss-framed messages on OPRs, attitudes and positive WOM intentions. Practical implications This study offers important practical implications for organizations that use AI technology in their hiring practices or are interested in incorporating AI into their hiring processes. The significant impact of loss-framed messages suggests that organizations should highlight the anticipated negative outcomes of not using AI rather than addressing the positive outcomes from AI use. The findings align with established negativity bias research in framing literature, demonstrating individuals’ greater susceptibility to negative information and adverse outcomes in persuasive contexts. The moderating effect of the benefits of using AI in hiring indicates that the impact of message frames on individuals’ attitudinal and behavioral responses to organizations’ AI use varies depending on organizations’ rationale for using AI. Originality/value This study is one of the early studies to examine individuals’ attitudinal and behavioral responses to organizations’ use of AI in hiring. Prior research suggests that OPRs mediate the relationship between individuals’ exposure to organizational messages and their attitudes toward organizations. Extending this line of inquiry, the current study explores OPRs’ mediating role in the context of AI-driven hiring processes and investigates how OPRs mediate the relationships between organizations’ message framing strategies and individuals’ attitudes toward the organization as well as their WOM intentions. By examining the effectiveness of gain- and loss-framed job advertisements, this study offers important insights for organizations on how to more effectively and ethically communicate about AI use with their stakeholders.