According to a recent report on automation trends by SIA, staffing firms express optimism about integrating artificial intelligence (AI) but are uncertain about which type to use.
A survey in the North American Staffing Company Survey 2023, published in December, revealed that nearly all staffing firms (94%) intend to incorporate AI in some way within the next five years. However, roughly half (45%) admit they are unsure about the specific type they will adopt.
Of the firms with a definite plan,
- 42% aim to implement generative AI
- 31% are contemplating machine learning
- 30% plan to utilize natural language processing
The survey also revealed that larger staffing firms are more decisive in their AI adoption plans. Over half (59%) of firms with revenues exceeding $100 million have specific AI implementation plans, showing a more intentional approach.
The survey indicated that larger staffing firms have more definitive plans. Over half of firms with revenues exceeding $100 million (59%) stated they intend to implement specific types of AI. This positions them as the most deliberate in their approach, according to Jon Osborne, VP of strategic research and report author.
Regarding industry segments, about 56% of information technology firms plan to use some form of AI, while only 40% of industrial firms have concrete plans.
Expected Benefits
Regarding the expected benefits of AI adoption
- 76% of staffing firms believe it will enhance operational efficiency
- 67% expect it to automate repetitive tasks for improved efficiency
- 60% anticipate improvements in candidate sourcing, screening, and assessment.
Jon Osborne wrote, “Most staffing firms have been automating elements of their business processes, both for temporary and permanent workers and for buyer clients.”
However, there is a notable difference in the level of automation between the worker side and the buyer side. Last year, the worker side had an average of 53% automated processes, compared to just 29% on the buyer side.
Conclusion
According to a report by SIA, staffing firms are optimistic about integrating AI but are unsure about the specific type to use. Nearly all firms (94%) plan to incorporate AI in the next five years, but 45% are uncertain about the type. Larger firms are more decisive, with 59% of those with revenues exceeding $100 million having specific AI implementation plans. Expected benefits include enhanced operational efficiency (76%), automation of repetitive tasks (67%), and improvements in candidate sourcing, screening, and assessment (60%).
