15+ AI Recruitment Statistics [2023]: Hiring Trends, Facts, and Data

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Research Summary: Recruitment can consume a lot of company resources, even if it’s worth the ROI. Luckily, AI recruitment is a new and innovative way to go through the process that has been becoming more popular.

To find out more about AI recruitment, from opinions to results, here are some crucial insights our research uncovered:

65% of recruiters currently use AI in the recruitment process.
67% of recruiters say AI has improved the hiring process.
96% of senior HR professionals believe AI will greatly enhance talent acquisition and retention.
95% of recruiters believe AI will help applicants with the application process.

For further analysis, we broke down the data in the following ways: Hiring Teams Using AI | AI Recruitment Software Companies

Recruiter Opinions on AI in Hiring

For the most part, recruiters are actually in favor of adding AI to the hiring process. It can save them time and produce helpful insights. Here are some examples of recruiter opinions on AI in hiring:

79% of recruiters believe AI will be advanced enough to make hiring and firing decisions soon.

However, candidates don’t hold the same views, as only 43% agree that AI will be advanced rough to make hiring and firing decisions.
85% of recruiters think AI is useful.

Using AI for recruitment is useful for many reasons, some of the most common including:
- Reduced workloads
- Improved search and hiring processes
- Streamlined candidate experiences
- Reduced instances of bias
68% of recruiters think AI will remove unconscious bias from the hiring process.

The fact is that 48% of hiring managers admit to having bias, and this can have a detrimental effect on many applicants’ interviews. Many recruiters think AI can reduce instances of unconscious bias, which will improve diversity and equity in the workplace.
Saving time is the top reason cited by recruiters for the implementation of AI recruitment, with 44% saying so.

Nearly half of all recruiters believe that AI recruitment will save them time, but there are other reasons why recruiters like AI recruitment as well. For example, 41% believe AI could provide valuable insights during the recruitment process, and 39% think it’ll make their job easier.

Benefits Cited By Recruiters Of AI Recruitment

Benefit Share of recruiters

Saving time 44%

Providing valuable insights 41%

Making the job easier 39%
35% of recruiters are concerned that AI could lead to overlooking unique and unconventional talents.

On the negative side, 26% of recruiters also believe AI recruitment could destroy the HR industry. Between these two opinions, it’s clear that recruiters are mixed on AI.

Benefit	Share of recruiters
Saving time	44%
Providing valuable insights	41%
Making the job easier	39%

Recruiters and Companies Using AI Statistics

Recruiters and companies are using AI for a variety of reasons, including cost reduction and speeding up the process. To learn more about exactly why companies and recruiters use AI, as well as the statistical benefits, here are some key facts:

86.1% of recruiters using AI say it speeds up the hiring process.

AI can cut hiring times significantly by scoring candidates and performing background checks. These processes can take hours or even days for a human employee but will only take minutes for an AI.
35% of recruiters say AI in talent recruitment is the most important development influencing how they hire.

More and more recruiters are saying that AI talent recruitment is something to be watching. Whether companies like it or not, AI recruitment is growing rapidly and shaping the market.
At least 73% of companies are investing in recruitment automation.

This is up 9% from 2021 when approximately 67% of companies are investing. If AI investment continues to grow at the same rate, nearly all companies will be investing in recruitment automation by 2025.
AI recruitment can reduce cost-per-hire by up to 30%.

Many companies are investing in AI recruitment to reduce spending costs, and it seems to be working. Not only does AI recruitment save money, but it also leads to an average 4% increase in revenue per employee.

AI Recruitment Software Industry

Interest in AI recruitment and the benefits following investment has caused an explosion of growth in the AI recruitment software industry. To dive deeper into the current state of the industry, here are some interesting trends:

AI recruitment is expected to have a CAGR of 6.5% through 2028.

Currently worth an estimated $590.5 million, the AI recruitment software industry is projected to grow to $890.51 million by 2028.
The Global AI recruitment market is worth $590.5 million in 2023.

That’s over 20% of the global recruitment software market, which is worth approximately $2.55 billion.

AI Recruitment FAQ

What percentage of companies use AI in recruitment?

35-45% of all companies use AI recruitment. The practice is especially popular with large companies and recruiters. For instance, 99% of Fortune 500 companies utilize AI recruitment, and 65% of recruiters do.
How is AI used in recruitment?

AI is used in recruitment to make certain tasks more cost-effective and efficient. There are many tasks AI can perform much faster and with more accuracy than humans; here are the top examples of how AI is used in recruitment:
- Screening appropriate resumes
- Sorting and scoring candidates
- Automatically engaging with chosen candidates
What are the pros and cons of using AI in recruitment?

There are many pros and cons of using AI in recruitment. Many recruiters are split in their positive or negative opinions toward AI recruitment, for example:

Pros:
- It saves time (44% of recruiters)
- It provides valuable insights (41%)
- It makes the job easier (39%)
Cons:
- It overlooks unique and unconventional talents (35% of recruiters)
- It will destroy the HR industry (26%)
What is the future of AI in recruiting?

In the future, AI will likely replace most parts of the recruiting process. While this might come with the benefit of more timely hiring processes and reduced costs, having AI take over the entire process might risk overlooking out-of-the-box candidates that have a lot of potentials.

Either way, the industry is certainly growing, being expected to reach $890.51 million by 2028 at a CAGR of 6.5%.

Conclusion

AI recruitment is becoming more and more common among recruiters and companies, with its popularity being owed to the fact that it can save time and costs. For instance, AI recruitment reduces cost-per-hire by up to 30%, and 86.1% of recruiters say it also speeds up the hiring process.

However, for all AI recruitment’s benefits, it’s important to remember the human element of the hiring process. Sometimes the best candidate isn’t necessarily the one with the best degree or highest quantitative application score. Unfortunately, AI cannot always accurately analyze the nuances that make a candidate ideal.

For this reason, it’s important for recruiters and companies to utilize AI in ways that make sense without sacrificing the vital human elements of the job hiring process.

References

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.