Fast Facts About AI in the Staffing Industry

Artificial intelligence (AI) is rapidly transforming the staffing industry. But what counts as AI? How are your competitors using it? And how can you prepare for a smooth adoption? 

Here are some fast facts about AI in staffing. For more resources, visit the TempWorks AI Hub. 

AI Adoption Within Staffing Agencies: Am I Behind?

Many staffing professionals are worried about falling behind on AI adoption. But the truth is: Most agencies are just getting started.

94% of staffing firms surveyed by SIA plan to use AI in some form within the next five years, but almost half of those said they aren’t sure what kind of AI they would adopt.

➜ If that’s you, start with a basic overview of AI and automation.

While 57% of staffing firms are experimenting, only 14% of survey respondents have AI mandates in place.

"AI" on a computer screen

Now is the time for experimentation and preparation, including familiarizing yourself with the legal and ethical implications of AI. 

Those who succeed the most at leveraging AI to grow their business will be the staffing firms who approach new technology and processes with strategy and careful planning. Here’s what you can do to get ready. 

The Future of AI in Staffing: Where Are We Headed?

An arrow hitting a target

We’ve experienced unprecedented growth in the staffing industry over the past four years. While that growth has slowed in the past year, economists forecast that the contingent workforce will grow to 28% in 2033 (from 19% today). 

AI could boost the number of workers on assignment by 9% (SIA). That means now is the time to invest in change so you’re ready to hit the ground running when new business comes your way.

AI is also changing the future of the recruiter–as well as the daily practices of your sales team and back office staff. The result is an enhanced talent journey and more opportunity for business growth.

How to Get Started with AI

To be ready for new technology, you first need to spend time getting prepared. This means cleaning up your data, cultivating buy-in from your teams, and assessing your business goals 

Most staffing firms who are using AI are still just getting their feet wet and experimenting (SIA). While you’re preparing your business for future enhancements, embrace this phase of exploration. Encourage teams to take advantage of free generative AI tools, and investigate what automation is already possible in your existing tech stack. 

Profile of a candidate

“In an ever-evolving industry, adopting innovative tools isn’t just about staying current; it’s about setting the pace. Take the leap with a strategic vision, understanding that technology isn’t just a tool; it’s the key to unlocking new possibilities, enhancing client experiences, and driving your firm towards a future defined by success and sustainability.”

–Brett Cavanagh, TempWorks President

“In an ever-evolving industry, adopting innovative tools isn’t just about staying current; it’s about setting the pace. Take the leap with a strategic vision, understanding that technology isn’t just a tool; it’s the key to unlocking new possibilities, enhancing client experiences, and driving your firm towards a future defined by success and sustainability.”

–Brett Cavanagh, TempWorks President

Now is the ideal time to examine your business needs and prepare for change. By investing in planning, preparation, and change management now, you’ll be ready to embrace new technology and grow your business.

People & Technology: Is AI Coming for My Job? 

Across industries, employees fear AI is coming for their jobs. What’s more likely to happen is that AI will become a vital tool for making jobs easier.

“Generative AI won’t take your job, but someone using it will.” 

–Barry Asin, Chief Analyst at Staffing Industry Analysts & keynote speaker at The Works 2023

“Generative AI won’t take your job, but someone using it will.” 

–Barry Asin, Chief Analyst at Staffing Industry Analysts & keynote speaker at The Works 2023

Man sitting in chair using a laptop

AI can help automate repetitive tasks, making employees more efficient and providing more room for high-value touchpoints with clients and candidates. 

Remember: People are at the center of the staffing industry. Roles might change, but we will always need a balance between the best people and the best technology.

Protecting My Business: What Do I Need to Know? 

AI brings many advantages, but there are also risks involved in navigating this new landscape. 

To maximize the benefits of AI while minimizing the risks, staffing firms need to find the right balance between embracing innovation and exercising responsibility.

This includes upholding ethical standards and ensuring legal compliance.

Lightbulb and gears

Some concerns include: 

  • Evolving legislation on both the state and federal levels 
  • The potential for plagiarism 
  • The role of bias in AI algorithms 
  • Privacy 

Learn how you can protect your business as you navigate the legal and ethical considerations in AI.

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Artificial intelligence (AI) is rapidly transforming the staffing industry. But what counts as AI? How are your competitors using it? And how can you prepare for a smooth adoption?  Here are some fast facts about AI in staffing. For more resources, visit the TempWorks...
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