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CFOs are being urged to treat candidate verification as a financial risk management priority as artificial intelligence (AI) improves recruitment efficiency while making it easier for applicants to exaggerate or fabricate qualifications. An Equifax Workforce Solutions survey found that 78% of HR professionals said AI has improved hiring and onboarding efficiency, but 73% have encountered misleading application information, and 36% said AI-generated candidate content has reduced confidence in hiring decisions. The financial consequences can be significant, with replacement costs for mid-to-senior employees estimated at 1.5 to two times annual salary, alongside potential productivity, remediation, severance, and compliance costs. Finance leaders are therefore encouraged to assess recruitment technology based on retention and data integrity rather than speed alone, strengthen independent verification of employment and credentials, and establish joint CFO and HR oversight of hiring risks.
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