Report: AI, Tech, and Trust Reshape Retail Hiring | Checkr
2026-02-28 22:15 Diff
https://checkr.com/resources/report/ai-tech-and-trust-reshape-retail-hiring

What is retail hiring like with AI in the room? We asked the people who’d know best.

The retail industry is transforming rapidly—not just in what consumers want, but in how companies recruit employees.

As AI and automation reshape nearly every part of the hiring process, retail HR leaders are under pressure to modernize quickly without losing the human connection candidates still expect.

To better understand this shift, Checkr surveyed 1,000 people in the retail industry—500 HR managers and 500 job candidates who recently completed interviews.

This report distills their responses into a snapshot of today’s biggest challenges, alignments, and opportunities—and offers practical takeaways to help hiring teams navigate the future of retail recruitment.

Top takeaways

AI adoption is taking hold

of retail HR teams are actively using or piloting AI in the hiring process.

Retail job seekers are adopting AI at a similar rate

35%

for interview practice or coaching

Candidates want transparency

of candidates say not hearing back after applying is their #1 frustration with the job search process.

Ethics are a priority

Both HR and candidates rank privacy and fairness as top concerns.

Fraud is top of mind

of retail HR managers are concerned about AI-assisted candidate fraud.

Human connection still matters

of retail candidates want direct human interaction during the hiring process.

Areas of agreement:
A shared vision for better hiring

Retail HR leaders and job candidates share a surprisingly unified vision for the future: A hiring experience that is faster, fairer, and more transparent.

Both groups recognize the potential of AI and automation to improve efficiency, streamline workflows, and reduce bias—but only when these tools are used thoughtfully and openly.

Candidates want to know how decisions are made, while HR professionals want to hire quickly without losing trust. The message is clear: AI can enhance hiring, but only if it’s implemented ethically, transparently, and in a way that reinforces human connection rather than replacing it.

AI that works for everyone

72% of HR pros say AI reduces manual work and improves efficiency. Some candidates agree, with 27% saying it speeds up the process and improves communication.

AI-powered tools with the most positive impact for HR

AI-powered interview summaries

Background check reporting and adjudication tools

Resume screening and ranking

Top automations candidates want

Application confirmation emails

Ethics matter most

Both sides rank privacy, transparency, and fairness as the biggest ethical concerns when AI enters the hiring equation.

    • HR's #1 concern: Candidate data privacy

    • Candidates' #1 concern: Privacy of personal data

    • Both include transparency and fairness in their top three

Top ethical concerns about AI and hospitality hiring

  1. Candidate data privacy
  2. Fairness across demographic groups
  3. Transparency about how AI is used in hiring
  4. Human oversight of AI decisions
  5. Accuracy of AI-generated outputs
  6. Candidate consent or opt-out opportunities

AI fraud is a major concern

68% of retail HR pros are concerned about AI-assisted candidate fraud.

However, there’s a clear split on both sides of the hiring desk when assessing what’s okay use of AI, and what’s not.

What do you consider to be AI fraud in hiring?

61%Using AI to generate fake or exaggerated resumes

40%Using voice-cloning or avatars to complete interviews

41%Submitting AI-generated writing samples or test responses without disclosure

33%Using job-matching AI to apply to roles without reviewing job requirements

42%Misleading employers with AI-altered headshots or video content

35%Using undisclosed AI listening tools to provide answers during an interview

8%I don’t consider any use of AI as fraud during the job search or interview process

Where retail hiring is
falling short

Even with strong alignment on key themes like efficiency, fairness, and ethical AI use, several disconnects between HR teams and job seekers persist—and they’re not simply surface-level misunderstandings.

These gaps in perception and communication can quietly erode trust, create frustration, and ultimately lead candidates to drop out of the process or decline offers.

Whether it’s a lack of transparency around AI use, differing views on fairness, or unmet expectations around human interaction, these disconnects represent critical pressure points that retail employers can’t afford to ignore.

Transparency isn’t translating

HR managers are trying to be transparent

    • 39% share when humans vs. AI review materials

    • 37% disclose the specific tools being used

    • 34% allow opt-outs or human review upon request

But it’s not always coming through to candidates; only 23% say they were clearly informed of AI use in hiring.

Candidates: How important is transparency about how AI-powered tools are used during hiring when deciding to apply for a retail job?

Fairness is in question

    • 57% of HR managers believe AI is as fair as human reviewers

    • But only 33% of candidates agree—33% disagree and 34% remain unsure

Is AI as fair as a human reviewer during hiring?

HR managers

Candidates

Candidates crave human involvement

say the majority of hiring should involve direct human interaction.

say automation made the process feel less personal.

Yet just 23% of HR managers report hearing this type of feedback—suggesting it may be overlooked internally.

Talent acquisition tactics to build trust

Bridging the gap between HR’s good intentions and candidates’ real experiences requires more than adopting new tools—it demands a strategic, human-centered approach to hiring.

Retail HR teams may be embracing AI to improve efficiency, but if candidates feel overlooked, confused, or disconnected, the technology risks doing more harm than good.

To truly modernize hiring in an AI-powered world, retail employers must focus on transparency, empathy, and education, ensuring that every automation still feels personal and every decision is clearly communicated.

Here’s how hiring teams can align their practices with what candidates want and expect.

Clarify AI use and intent

Ask your team:

    • Do we clearly tell candidates where and how AI is used?

    • Are we setting expectations around human involvement in hiring?

Take this action:

    • Add plain-language AI disclosures in applications and emails

    • Publish a simple FAQ or statement outlining your hiring process

    • Give candidates the option to request human review

Keep hiring human

Ask your team:

    • Are our automated communications warm and personal?

    • Do we use AI to support, not replace, real human interaction?

Take this action:

    • Modify automated emails so they sound human and empathetic

    • Add real recruiter touchpoints at key stages of the process

    • Personalize feedback and updates wherever possible

Tap into training

Ask your team:

    • Has our team been fully trained on how AI tools work and how to explain them to candidates?

    • Are hiring managers aligned on how automation fits into their process?

Take this action:

    • Offer internal training or vendor-led AI onboarding sessions

    • Align HR, TA, and IT teams on shared practices and ethical standards

Lead with ethics and accountability

Ask your team:

    • Do we have a public stance or internal policy on AI ethics?

    • Are we regularly auditing tools for bias or risk?

Take this action:

    • Draft a short, values-driven AI code of ethics

    • Involve DEI and legal teams in tool evaluation

    • Share ethical commitments with candidates where appropriate

Trust is the new metric

Retail hiring is evolving fast, and AI is clearly part of its future. But tech tools alone won’t win top talent—transparency, empathy, and trust will.

Candidates want to know what’s happening behind the scenes, and want to feel seen as more than data points.

The good news?

HR teams are already well on the way to better hiring with AI. With a few targeted shifts—in how we communicate, train, and apply ethical standards around AI use—retail hiring can become both faster and more human.

How Checkr can help

Checkr is the data platform that powers safe and fair hiring decisions. Our modern retail background checks integrate seamlessly with your hiring tech stack through 200+ integrations and our custom API, providing transparency, automation, and compliance management at scale. Over 100,000 HR teams use Checkr to inspire trust and deliver an outstanding candidate experience, without losing the human touch.

Ready to unlock retail HR’s strategic potential with better background checks?

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Survey methodology

All data in this report is based on a July 2025 survey conducted by Checkr using the Pollfish platform. We surveyed 1,000 total respondents: 500 HR managers and 500 job candidates in the retail industry who had applied for a job and completed an interview within the past six months. All participants answered questions to the best of their knowledge and experience.

Disclaimer

The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.