According to a recent global report by Bullhorn, staffing companies that implemented an AI strategy were the most likely to see revenue growth in 2023 (57%), with those experimenting with generative AI following closely behind (51%).

The report highlighted that the percentage reflects the firms’ general readiness to embrace technology rather than the direct revenue impact of AI. Nevertheless, it mentioned that based on discussions with staffing firms, most anticipate AI becoming a standard feature in every business by 2025.

While many staffing firms are still in the early stages of exploring AI’s potential, top-performing firms have adopted key AI tools at or near a 20% rate, according to Bullhorn. These firms are more than twice as likely to use AI-driven tools for shift scheduling and credentialing and 2.5 times as likely to use them for gathering client requirements.

The report stated that “Winners in this market are investing heavily in automating and applying AI to rote tasks that can easily be handled completely or in part by technology, like onboarding paperwork and gathering job requirements. “That way, human beings can step in only when there is an exception or to perform a final review, freeing them up to focus on strengthening client relationships, pursuing new business opportunities, and offering higher-margin services like consulting.”

“Lower-performing firms are missing opportunities to automate repetitive tasks, leverage AI to improve their talent and client engagement, and automate new lead engagement to the same degree,” the report stated. Firms that get out in front on this trend and are early adopters of new technologies will enjoy a significant competitive advantage moving forward and remain winners.”

The report further stated that high-performing firms used automation to enhance productivity and efficiency. They were 2.4 times more likely to have automated the process of gathering client requirements and 32% more likely to use automation for candidate screening. Additionally, Bullhorn’s data indicates that firms that automate their processes receive 39% more submissions per employee and fill 22% more jobs.

High-performing firms rely on automation to enhance productivity and efficiency. They are 2.4 times more likely to have automated the process of gathering client requirements and 32% more likely to use automation for candidate screening. Bullhorn data shows that firms that automate their processes receive 39% more submissions per employee and fill 22% more jobs.

Firms that experienced revenue growth in 2023 often placed candidates in 10-19 days, with 59% of the highest performers placing candidates in 19 days or less.

In addressing talent shortages, 42% of firms that saw revenue increase by 10% or more in 2023 said they are investing in technology to improve talent engagement.

According to Bullhorn’s data, the top strategic priority for 2024 is winning new clients, with 44% of firms prioritizing this goal. This is followed by digital transformation (30%), candidate acquisition (30%), and strengthening client relationships (30%). Other key priorities include brand development and marketing (26%), improving the candidate experience (25%), and expanding into new markets and services (20%).

Meanwhile, the main market challenges for 2024 include uncertainty about the economy and future growth (60%), increased competition from freelance/gig platforms (40%), workers shifting to non-traditional labor models (24%), local and national legislative changes (22%), and increased compliance requirements for credentialing (10%).

Conclusion

Staffing firms that implemented an AI strategy experienced significant growth in 2023, with 57% seeing revenue growth. Those experimenting with generative AI also saw growth (51%). While many firms are still exploring AI, top performers are twice as likely to use AI for tasks like shift scheduling and client requirements. 

These firms focus on automating tasks to free up time for client relationships and higher-margin services. High-performing firms also use automation for candidate screening, leading to more submissions per employee and more filled jobs. The main market challenges for 2024 include economic uncertainty, competition from freelance platforms, and legislative changes.

Source: https://www2.staffingindustry.com/%20eng/Editorial/Daily-News/Staffing-firms-with-AI-strategy-saw-more-growth-in-2023-68571

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