2020 Staffing Technology Trend No. 3: AI and Machine Learning
AI Brightens the Financial Outlook of the Staffing Industry
It’s impossible to overstate the amount of change that AI will bring to the staffing industry.
AI enables staffing firms to get more work done, faster and less expensively. AI delivers value across all areas of staffing to produce cost savings and higher velocity operations. That’s why AI adoption is accelerating across the staffing landscape as the industry invests in digital workplace initiatives.
The good news is that AI will improve the economics of the staffing industry. AI will also enable staffing firms to deliver higher value services less expensively. As a result, demand for staffing services will rise as cost savings are passed on to buyers.
We’ll look back at the end of the 2020s with astonishment at the amount of transactional work that is no longer handled by humans.
AI’s Impact on Staffing Has Only Just Begun
Computers are >1000X more powerful compared to 25 years ago, yet recruiter productivity in many segments of staffing has remained stubbornly unchanged. How could that be?
Because staffing processes involve complex logic and a human touch.
But that’s quickly changing…
Send in The Bots
AI has arrived and you now benefit from AI every moment of the day. But to the casual observer, AI is amorphous and barely visible.
That’s because it’s hard to distinguish AI-infused apps from traditional rules-based apps. The best AI feels natural, like when we talk to Siri or when Microsoft Word makes a suggestion for us.
Fueled by Massive AI Engines in the Cloud
The rapid rise of AI has been powered by Google, IBM, Amazon and Microsoft’s massive AI engines in the cloud. Any programmer can now infuse powerful AI capabilities into their application by tapping into these affordable services. Microsoft alone has 10,000+ employees focused on AI initiatives. They see AI as the most important driver of greater productivity in the 2020s and beyond.
Underneath the hood, scores of semiconductor vendors, including Nvidia and Intel, are investing billions to produce specialized AI processors and software stacks that will speed up AI processing by orders of magnitude during the 2020s.
The Killer Combo of Technologies Has Arrived
AI/ML + cloud computing + chatbots + native mobile apps + Robotic Process Automation is the killer combination that will finally transform the staffing industry as we know it.
We predict that all cloud apps will be infused with AI by 2025. We envision a future where 85% of interactions with candidates, employees and customers will be powered through AI by 2025.
And it’s still early days. Jeff Bezos likes to say that we’re barely in the first inning of the AI revolution that lies ahead.
The Shift to Full Automation Gathers Steam
The 2020s will be remembered as the decade when the staffing industry became highly automated. AI will change how work gets done as knowledge workers increasingly work side-by-side with algorithms, automations, virtual assistants and bots.
ATS vendors, for example, are actively training ML-based Virtual Assistants (VAs) using millions of existing data records. These VAs will enable recruiters and sales executives to be more productive.
Staffing firms should plan on investing in a combination of AI tools, chatbots and automation platforms to build proprietary AI and automation solutions for their business.