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Global Staffing Firms Transitioning to AI Recruiting

Last updated: 12-14-2019

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Global Staffing Firms Transitioning to AI Recruiting

Global Staffing Firms Transitioning to AI Recruiting
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Digital transformation is omnipresent in workplaces across the globe and organizations plan to continue its implementation across hiring processes.
This is one of the findings in a global survey by CEIPAL , a SaaS provider for the front- and back-office business operations of staffing companies, which found that universal acceptance of artificial intelligence (AI)  is the future of recruitment.
The “ 2019 Artificial Intelligence in the Recruiting Industry ” benchmark report found that two-thirds of all staffing firms will adopt AI-driven applicant tracking systems (ATS) by the end of 2020, while 79% of enterprise staffing firms (firms with more than 100 recruiters) will have done the same.
“As the first technology company to deploy an AI-driven ATS solution, CEIPAL has enjoyed a front row seat to the disruption that’s happening in this industry by way of artificial intelligence, which provides us a unique opportunity to establish industry benchmarks,” said Sameer Penakalapati, CEO of CEIPAL. “Now that the reality of AI technology in our industry has actually caught up to its buzz, we want to quantify the sea change it’s causing and share that data with our customers and the rest of the staffing world in preparation for the coming new year.”
Other key findings and data points include the following:
Large Staffing Firms Are Lagging: Large-sized staffing firms (50-100 recruiters) showed relatively low awareness of AI-enabled ATS technology even when compared to their smaller mid-sized (25-50 recruiters) counterparts. While enterprise-sized firms are unsurprisingly leading the adoption curve, 43% of large-sized staffing firms have no plan to adopt AI.
Consensus on AI’s Future and Benefits: All respondents either agreed or strongly agreed that AI is the future of recruitment and that its adoption will enable recruiters to build better relationships with candidates.
Most Say AI Helps to Eliminate Human Bias: The majority of respondents (71%) believe that AI will eliminate human bias from the recruitment process. However, there were 29% who strongly disagreed with that sentiment.
AI-enabled Chatbots Are Critical for Reaching Gen-Z and Millennial Recruits: More than half of today’s recruits span a generation that has famously shunned email and phone calls in favor of texting. Unsurprisingly, 52% of respondents strongly agreed that AI-enabled chatbots will improve productivity and the recruitment experience of those candidates.
Drivers for Adopting Artificial Intelligence: Respondents indicated “marketing requirements” are the biggest driver toward AI adoption along with productivity, quality and reporting needs. Respondents who reported marketing requirements as a pain point were 23% more inclined to adopt AI in their recruitment practices (80% said they were likely to adopt) than those who did not report marketing as a pain point (65% said they were likely to adopt).
AI Adoption Trends by Geography: Southeast Asia leads the pack in AI adoption for recruitment. This trend is likely to continue, as firms in that region often work on transactional placements with smaller margins and strict requirements for operational excellence. Firms in the U.K. followed closely behind, and U.S. firms were technologically lagging behind both those regions. However, 60% of U.S. firms intend to catch up within the year by incorporating AI technologies into their current practices.
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