This Startup’s AI Is Used By Billion Dollar Companies To Hire Top Talent (2024)

Moonhub’s AI chatbot, trained on 1 billion candidate profiles, helps hiring managers at AI unicorns like Anthropic and Inflection find and recruit employees.

In August, Tony Zavala was hired as an AI language specialist to improve the performance of Pi, a conversational chatbot developed by unicorn startup, Inflection. But Zavala, who previously worked as a computational linguist at LinkedIn, wasn’t looking for a job. He was discovered and recruited thanks to an AI agent built by San Francisco-based startup Moonhub.

A human recruiter had provided the AI with specifications like “experience working with ChatGPT-like products,” and “technical experience at a top tech company” to find Zavala’s profile. Before Moonhub’s human recruiter reached out, Zavala said he wasn’t “specifically familiar” with Inflection or the job opening and had only heard the company’s name in passing.

“We help companies find those we call ‘the hidden talent.’ Oftentimes [candidates] are not actively interviewing, but they may be passively interested in a conversation,” said Moonhub founder and CEO Nancy Xu.

Since launching in January, Moonhub has onboarded more than 100 customers including billion-dollar startups like Inflection and Anthropic as well as other startups like Atomic AI, Hippocratic AI and You.com Xu told Forbes. The company announced Wednesday that it raised $10 million in seed funding from Khosla Ventures and GV with participation of Time Ventures, Day One Ventures and angel investors like Susan Wojcicki (former YouTube CEO), Mike Volpi (Index Ventures general partner) and others. Within a year since launch, the startup has booked more than $1 million in revenue, Xu said, but the purpose of the capital infusion is to improve the AI product and to expand the team.

“At Anthropic, as well as at Inflection, we were one of the earliest talent partners that they worked with,” Xu told Forbes. “Actually, in the case of Anthropic, we worked with them before they even had their own in-house recruiter.”

Recruiters can query Moonhub’s conversational chatbot to find hundreds of relevant candidates by feeding it contextual information like the job description and company information. They can also inject prompts like “show me people in the Bay Area from top Ivy League Schools” and find people working at similar companies or companies that use similar technologies. Companies use Moonhub’s recruiting services to hire for white-collar jobs like data scientists, software engineers and marketing managers but Moonhub’s clients aren’t only limited to tech companies, Xu said–they also include elder care company LifeWorx, electric boat manufacturer Navier and parking space provider Diamond Parking.

Moonhub’s AI recruiter is trained on a database of more than 1 billion public profiles sourced from a range of sites including LinkedIn, Upwork, GitHub, Google Scholar, Overflow, StackOverflow and Twitter. The company used its in-house large language models as well as those developed by OpenAI, Cohere and Anthropic to create its own conversational recruiting agent. Of note, Xu said, is its patent-pending “custom retrieval augmented generation framework,” a technique that can improve the quality of the chatbot’s responses than a regular LLM by quickly processing additional information like recruiting knowledge from experts in the field.

As of now, Moonhub’s human recruiters reach out to potential candidates, schedule interviews and manage the recruitment process, but soon AI will handle everything apart from interviews, she said. But using AI for finding and screening candidates can introduce several biases in the hiring process and can potentially exclude and discriminate against candidates from certain backgrounds. Xu said her startup is trying to make the AI recruiter more fair by allowing employers to boost profiles of diverse candidates and diversifying the data its models are trained on. She said Moonhub is a modern AI alternative to startups who outsource recruiting duties to external firms – a costly and time-intensive experience. “Many companies that are not AI native companies themselves are coming to Moonhub as a way to become an AI native company.” said Xu, who also runs her own VC firm, Xu Ventures.

Before starting Moonhub, Xu left a PhD in computer science at Stanford, where she worked on foundational models to build AI agents for various applications including customer support at the Stanford AI Lab. She also ran a recruiting firm where she learned about the difficulties of finding quality candidates in a short span of time, which eventually led her to create the startup.

“For many people the magic moment when they use Moonhub is when they realize that they can sit back on a Friday night, watch Netflix, chat with an AI, and in five minutes, they discover 50 candidates that they really like,” Xu said.

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This Startup’s AI Is Used By Billion Dollar Companies To Hire Top Talent (2024)

FAQs

Which companies use AI for hiring? ›

Top 9 Companies That are Using AI for Recruitment
  • Amazon. Amazon.com, Inc. is an American multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. ...
  • Unilever. ...
  • Delta Air Lines. ...
  • Siemens AG. ...
  • Domino's. ...
  • Electrolux. ...
  • Hilton. ...
  • Procter & Gamble (P&G)
May 30, 2024

What percentage of companies use AI for hiring? ›

The majority of recruiters (65%) already use AI in the process of recruitment. Our results come in comparison to a 2015 study which stated that 75% of talent managers use AI recruiting software. In our 2022 research, we found that only 66% of recruiters use it.

Who is the founder of Moonhub AI? ›

In January, Nancy Xu left a PhD at Stanford where she worked on foundational models to start her AI recruiting company, Moonhub. Today, Moonhub is used by buzzy AI startups Anthropic and Inflection to source and hire employees. “We help companies find those we call 'the hidden talent.

Why many firms use AI in recruitment of new talent? ›

AI helps reduce bias by using algorithms to evaluate candidates based on objective criteria rather than subjective human judgment. This minimizes unconscious biases that can affect decision-making.

Why are companies using AI for hiring? ›

Reduce time-to-hire – AI recruitment platforms make the hiring process faster. Streamline several parts of the overall process, like conducting pre-screening assessments and interviews and enabling data-driven decision-making.

Which company uses AI the most? ›

Few companies are involved in as many industries as Amazon (AMZN -0.27%), including e-commerce, cloud computing, logistics, voice-activated technology, and even autonomous vehicles. It shouldn't come as a surprise that Amazon is also using AI in a wide range of ways.

How many Fortune 500 companies use AI in hiring? ›

We know that 99 percent of Fortune 500 companies already use AI tools in hiring,' she said. Schellman said that it's inevitable that if you apply today, your resume will be screened by AI long before it's dealt with by a human - and offers tips on how to be seen in an AI-driven workplace.

Is AI hiring biased? ›

Just like humans, AI algorithms and software can be biased. So, when organizations rely on AI during the hiring process, the result can be hiring discrimination and other unfair outcomes due to bias.

Which companies will profit most from AI? ›

The best AI stocks include companies that produce AI technology and those that integrate AI tools into their business models, such as Nvidia, MicroStrategy and Microsoft. Investing in AI has proven to be profitable, with companies like Nvidia and Microsoft showing substantial growth and strong business fundamentals.

Who is the godfather of AI? ›

Geoffrey Hinton, the computer scientist who is often called “the godfather of A.I.,” handed me a walking stick. “You'll need one of these,” he said.

Who is the father of all AI? ›

John McCarthy (1927–2011), an American computer scientist and cognitive scientist, often hailed as the "father of artificial intelligence" (AI), made significant contributions to both AI and computer science.

Who is the current leader of AI? ›

There is no single company leading in AI. By market cap, NVIDIA is the largest developer of GPUs used in AI, Apple is the largest company currently integrating AI into its core products, and Tesla is the largest automotive company driving AI innovation.

What are the risks of using AI in recruitment? ›

Risks related to privacy, bias, and candidate trust have led to questioning the ethics of using GenAI for recruitment purposes. Many HR professionals report that they are unsure of how and where to apply AI, raising concerns about privacy and data security as the main barriers.

How do you beat AI in recruitment? ›

One way to ensure your resume makes it past the initial screening is to include the exact keywords used in a job description. AI-based resume screeners sometimes reject qualified candidates simply because their resumes do not include the exact criteria and keywords established in the job description.

What is the future of AI in hiring? ›

Forecasting Future Trends in AI Recruitment

As machine learning has more time to accumulate and analyze data, it will be better at finding the right candidates. Expect AI tools to dominate more of the screening process. AI will help more with the initial screening process, including running video interviews.

How many companies use AI for HR? ›

Over 88% of companies worldwide have utilized AI technology in HR processes, including recruitment. AI technology is widely used by 88% of firms for its benefits in recruitment.

Does Amazon use AI for HR? ›

Over the last several years, we've built tools using AI and ML to help job applicants throughout the hiring process—from identifying the right position to apply for, to giving them more flexibility through online assessments that help us engage and evaluate candidates—all while driving equity and fairness in the hiring ...

Does Google use AI for hiring? ›

Google Cloud HR team leverages AI to enhance recruitment and reduce onboarding time | Fortune.

What companies use chatbots for recruitment? ›

Who are some companies using chatbots in recruiting?
  • Marriott – Facebook Messenger – Hospitality.
  • US Army – Sgt. Star -Web Chat – Military.
  • MERRILL Technologies Group – Web and Text Apply- Manufacturing.

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