Modern recruitment relies heavily on technology to streamline processes, improve decision-making, and enhance efficiency. Two of the most prominent tools in this field are Automated Employment Decision Tools (AEDTs) and Applicant Tracking Systems (ATS). While these tools share some functionality, they serve different purposes and bring unique features to the table. This article explores seven key differences between AEDTs and ATS, helping you understand which tool fits your hiring needs.

1. Primary Purpose

The first major difference lies in their primary purpose.

• ATS: Designed to organize, track, and manage job applications. It’s primarily a database system for storing resumes and tracking candidates through the hiring pipeline.
• AEDTs: These tools are more advanced, using AI and machine learning to analyze data and assist or automate hiring decisions. They are often used for scoring candidates, predicting job performance, and assessing fit.

Key takeaway: While an ATS helps manage recruitment workflows, AEDTs actively assist in decision-making.

2. Technology Used

The technology powering each system also sets them apart.

• ATS: Relies on basic algorithms to match resumes to job descriptions, often using keyword-based searches.
• AEDTs: Leverage artificial intelligence (AI) and machine learning (ML) to go beyond keyword matching. They analyze complex datasets to predict candidate success, evaluate behaviors in interviews, and detect hiring biases.

Key takeaway: ATS is a rule-based system, while AEDTs utilize advanced AI for deeper insights.

3. Role in Decision-Making

How these tools influence hiring decisions differs significantly.

• ATS: Supports the hiring process by filtering resumes and organizing candidates but leaves decisions to human recruiters.
• AEDTs: Play an active role in making hiring decisions. For example, AEDTs may recommend top candidates based on predictive analytics or behavioral analysis from assessments.

Key takeaway: ATS supports decision-making, while AEDTs assist or automate it.

4. Scope of Use

The scope of functionality also highlights a difference.

• ATS: Primarily focuses on tracking applicants and organizing data for recruitment.
• AEDTs: Extend their utility beyond recruitment, influencing promotions, employee performance reviews, and retention strategies.

Key takeaway: ATS is recruitment-focused, while AEDTs have a broader application.

5. Examples of Systems

Both tools have notable examples, but their use cases differ.

• ATS Examples: Workday, Taleo, Greenhouse, Lever. These tools are widely used to post jobs, manage resumes, and track candidates.
• AEDT Examples: HireVue, Pymetrics, Eightfold AI. These systems evaluate candidates using AI, offering insights into personality, skills, and predicted success.

Key takeaway: ATS tools are built for application tracking, while AEDTs focus on analysis and automation.

6. Candidate Experience

Both tools impact the candidate experience differently.

• ATS: Helps with basic interactions like application updates and interview scheduling. Candidates often need to tailor their resumes to match ATS algorithms.
• AEDTs: Deliver a more interactive experience, such as AI-scored video interviews or skill-based assessments, but candidates may feel scrutinized by AI.

Key takeaway: ATS provides functional support, while AEDTs can create a more dynamic yet potentially intimidating experience.

7. Compliance and Bias

Regulatory compliance and addressing bias are critical areas where AEDTs differ from ATS.

• ATS: Has limited capabilities for detecting or addressing bias, as its algorithms are primarily focused on keyword matching.
• AEDTs: Often include features to identify and mitigate bias in hiring decisions, but this requires rigorous oversight and frequent audits.

Key takeaway: AEDTs are equipped to address bias but require careful implementation, whereas ATS systems lack this functionality.

Why Integration Matters

Modern recruitment platforms often integrate ATS and AEDT functionalities, offering the best of both worlds. For example:

• An ATS might include AI-driven candidate scoring to enhance screening capabilities.
• AEDTs may include workflow tracking features to streamline end-to-end recruitment processes.

Benefits of Integration:

• Efficiency: Combines tracking and decision-making tools in one platform.
• Better Insights: Delivers comprehensive analytics for recruitment and workforce planning.
• Improved Candidate Experience: Provides seamless communication and transparent processes.

Which Tool is Right for You?

Deciding between an ATS and an AEDT depends on your organization’s needs:

• Choose an ATS if your goal is to manage large volumes of applicants efficiently.
• Choose an AEDT if you want to enhance decision-making with predictive analytics and behavioral assessments.

Conclusion

Both Automated Employment Decision Tools (AEDTs) and Applicant Tracking Systems (ATS) have revolutionized hiring, but their purposes, technologies, and applications differ significantly. By understanding the seven key differences outlined above, organizations can make informed decisions about which tool—or combination of tools—best meets their hiring and workforce needs.