The Future of RPO: How AI is transforming talent acquisition

Artificial Intelligence (AI) is revolutionizing the TA landscape, promising increased efficiency, reduced costs, and a more nuanced approach to hiring. A McKinsey & Company study states that 40% of recruiting tasks could be automated, while current estimations suggest as much as $5,000 to $10,000 per hire could be saved using Generative AI (Gen AI). This transformation will allow TA and HR professionals to focus on strategic business issues, enhancing the quality of hires and building better teams. However, AI is difficult for companies to navigate, and many companies are still establishing their AI policies.

Speed of AI adoption is unprecedented

The rapid adoption of AI technologies underscores the public’s readiness to embrace intuitive and versatile technology. Gen AI, subset of AI technology that can generate new written, visual, and audio content by using datasets it is trained on. Gen AI also offers dynamic problem-solving capabilities and heightened personalization.

Current AI capabilities in TA

Gen AI is already enhancing efficiency and candidate experiences in several areas:

• Create targeted job descriptions
• Create online advertisements
• Write copy for candidate outreach emails
• Summarize feedback after an interview
• Conduct interviews with candidates

These AI applications allow TA and HR professionals to focus on more impactful work. We believe AI will unleash a productivity boom, freeing recruiters from time-consuming repetitive tasks so they can focus on what they do best – building connectivity with candidates.

Barriers and challenges to AI adoption

The fluid regulatory landscape poses challenges for AI adoption. Laws such as the NYC Bias Audit Law (effective July 2023) mandate independent audits of AI in decision-making, creating constraints for companies. Multinational firms face additional complexity with varying regulations across regions.

Enterprises buy new technology slowly. The necessary rigor around the deployment of AI tools in companies clashes with the start-up culture of the Silicon Valley. Implementing this new AI technology in organizations takes time. There is a lag between AI capabilities and when companies and their employees are willing to embrace the new technology.

Responsible AI is crucial

Responsible AI is the practice of developing and deploying AI in a fair, ethical, and transparent way. Companies have a responsibility to ensure that AI systems are aligned with human values and do not harm individuals or society. The use of AI in talent acquisition raises ethical challenges around bias, discrimination and transparency that must be carefully monitored and addressed. 

How companies are implementing AI

Companies have three primary approaches to adopt AI

• Buy AI Solutions: Fast implementation but limited customization and bespoke features.
• Build AI Solutions: Full customization but high development costs and maintenance responsibilities in perpetuity.
• Outsource AI Solutions: Cost-efficient with expert support but less control over the AI development process.

Partners with global reach and ongoing investment in AI capabilities can provide on-demand access to advanced AI tech, helping organizations navigate the evolving landscape. Companies that decide to build their own AI tools will need AI engineering capability and integration resources. As AI tech evolves, continually testing for bias performance and other issues will also be required. Any company contemplating building AI tech in-house should be prepared for this level of commitment and expense. For most firms, this is impractical as their primary business endeavors consume most of their tech resources.

Future state

The future of work will be digitally driven, beginning with TA. AI will enable new ways of working, improving efficiency and candidate experiences. TA and HR leaders must prepare for a future where AI is integral to TA processes, ensuring their organizations remain competitive and attractive to top talent.

AI's transformative power in talent acquisition is undeniable. TA and HR leaders must act now to implement AI strategies or risk falling behind. Partnering with AI experts can provide the necessary support to navigate regulatory challenges, manage ethical considerations, and realize AI's full potential. By embracing AI, organizations can enhance their TA processes, driving success and innovation in the digital age.

To read the Future of RPO white paper, download the full report here.