[1] An ATS is very similar to a customer relationship management (CRM) system, but is designed for recruitment tracking purposes.
The principal function of an ATS is to provide a central location and database for a company's recruitment efforts.
Newer applicant tracking systems (often the epithet is next-generation) are platforms as a service, where the main piece of software has integration points that allow providers of other recruiting technology to plug in seamlessly.
[5] Recent changes include the use of artificial intelligence (AI) tools and natural language processing to facilitate guided semantic search capabilities [citation needed] offered through cloud-based platforms that allow companies to score and sort resumes with better alignment to the job requirements and descriptions.
With the advent of ATS, resume optimization techniques and online tools are often used by applicants to increase their chances of landing an interview call.