Staffing firms are optimistic about implementing artificial intelligence but unclear on which type to use, according to a new SIA report on how organizations intend to use automation.

Nearly all staffing firms surveyed, 94%, anticipate using AI in some form within the next five years, according to the North American Staffing Company Survey 2023, published in December. Yet almost half, 45%, say they don’t know what kind they would adopt, the report showed.

Among the firms that do have specific plans, 42% said they intended to use generative AI, while 31% intend to use machine learning and 30% plan to use natural language processing.

Larger staffing firms have more concrete plans, the survey showed. More than half of firms with revenue exceeding $100 million, 59%, said they plan to use specific types of AI. This makes them “the most intentional regarding its use,” wrote Jon Osborne, VP of strategic research, who authored the report.

About 56% of information technology firms plan to use at least one form of AI. In contrast, just 40% of industrial firms have specific plans.

Expected Benefits

When it comes to how staffing firms expect to benefit from AI, 76% expect it to enhance operational efficiency, 67% say it will help them to automate repetitive tasks to enhance efficiency and 60% say it will improve candidate sourcing/screening/assessment.

“Most staffing firms have been automating elements of their business processes, on both the temporary and permanent worker side and on the buyer client side,” Osborne wrote.

Still, the study showed a difference between automating for both sides. On the worker side, the average share of automated processes was 53% last year. In contrast, it was just 29% on the buyer side.

Source: North America Staffing Company Survey 2023: Use of automation: staffing/talent platforms, artificial intelligence and process automation in traditional staffing.

-Henry Liu