Artificial intelligence is no longer a far-off concept. AI is playing a role in transforming hiring today. Insight Global’s 2025 AI in Hiring Survey reveals that 99% of hiring managers are already using AI in their hiring process, with 98% reporting significant improvements in efficiency. Let’s explore how AI is impacting the future of hiring, for hiring managers and candidates alike, and why leaning on a trusted staffing partner such as Peoplelink Group ensures businesses remain both forward-thinking and people centered.
How AI Is Impacting Hiring Managers
For hiring managers, AI can be used to streamline recruiting tasks. From resume parsing to initial screenings, technology is accelerating the process and helping companies save time and money. In fact, studies show that AI tools can reduce hiring costs by up to 30 percent and enable managers to spend less time on paperwork and more time focusing on strategic workforce planning.
Not only can AI impact hiring costs and time to fill. AI is also reshaping decision-making with managers perceiving AI as a means of reducing hiring bias. In fact, a recent survey indicates 68% of recruiters believe AI could help eradicate bias from the hiring process.
However, despite positive perceptions, AI is flawed. Algorithmic bias remains a risk sited by 18% of survey respondents along with concerns about AI disregarding candidates with unique experience. According to Pew Research, 44% of Americans think AI will not be as proficient in identifying candidates with potential who are not an exact match for an job description.
Beyond overlooking potential candidates, another emerging AI challenge is the rise of deceptive practices, such as candidates using deepfake technology to alter their identities during interviews. In fact, according to Gartner, by 2028, 1 in 4 online prospect profiles will be fake.
60% of U.S. managers admit to relying on AI for hiring and firing decisions with little oversight, which raises questions about compliance, fairness, and risk management. Ultimately, hiring managers must balance the efficiency that AI provides with the need for authentic, dependable, and human-centered hiring practices.
How AI Is Impacting Candidates
While AI offers hiring managers speed and efficiency, it is also reshaping the experience for job seekers. On the positive side, candidates now benefit from faster application reviews and smarter job matches. However, the process can also feel more impersonal. LinkedIn data shows that job applications are up 45% year over year, with U.S. job seekers submitting approximately 11,000 applications per minute, often powered by AI-generated resumes and cover letters. This surge highlights how AI can help candidates apply more efficiently, yet at the same time, the materials may appear generic or emotionally flat, which can make it difficult to stand out. It appears candidates may be tailoring their applications towards AI, removing details on soft skills in favor of emphasizing analytical skills.
In addition to impacting the application process, prospective employers increasingly expect AI proficiency. A recent survey found that 81% of hiring managers prioritize AI-related skills in their recruitment process. Among the in-demand abilities is familiarity with ChatGPT, problem-solving, ethical AI use, and even prompt engineering. Despite the shift toward AI proficiency, many candidates remain hesitant to fully embrace AI. In fact, 66% of U.S. adults say they avoid applying to jobs that openly use AI in their hiring decisions, pointing to concerns about fairness and transparency.
Finding a balance between automation and authenticity has created a complex environment for job seekers. On one hand, AI-powered chatbots and resume parsers increase completion rates and make applying more seamless. On the other hand, the reduced human interaction often leaves candidates feeling ghosted and left with no feedback on why they were eliminated from consideration and few, if any, opportunities to speak to their unique qualifications.
Why Staffing Partners Like Peoplelink Group Matter
Clearly, AI is transforming both sides of the hiring process, but these changes highlight the continued importance of working with a staffing provider. AI is not replacing staffing partners. Rather, staffing providers play a vital role in ensuring that AI enhances instead of diminishing the quality of the workforce.
One of the key benefits of partnering with a staffing provider is human oversight. Even as AI becomes widely adopted, most hiring managers agree that human expertise is still necessary to use these tools effectively. Peoplelink Group provides that balance by blending advanced recruiting technology with the experienced judgment of staffing professionals. Peoplelink recruiters evaluate soft skills in real time through meaningful interactions, provide invaluable candidate support, and make strong employer-candidate connections based on a thorough understanding of organizational nuances like team dynamics and leadership styles. In addition, agencies like Peoplelink manage evolving labor laws and compliance issues, which protects companies from costly risks and liabilities. We help businesses stay productive while maintaining the human connection that workers and employers both value. To learn how Peoplelink can support your hiring goals in the age of AI, contact us today.