More organizations use AI in the hiring process than ever before, yet the perceived ethicality of such processes seems to be mixed. With such variation in our views of AI in hiring, we need to understand how these perceptions impact the organizations that use it. In two studies, we investigate how ethical perceptions of using AI in hiring are related to perceptions of organizational attractiveness and innovativeness. Our findings indicate that ethical perceptions of using AI in hiring are positively related (...) to perceptions of organizational attractiveness, both directly and indirectly via perceptions of organizational innovativeness, with variations depending on the type of hiring method used. For instance, we find that individuals who consider it ethical for organizations to use AI in ways often considered to be intrusive to privacy, such as analyzing social media content for traits and characteristics, view such organizations as both more innovative and attractive. Our findings trigger a timely discussion about the critical role of ethical perceptions of AI in hiring on organizational attractiveness and innovativeness. (shrink)