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AI in Staffing: How Staffing Companies are Improving Operations Through Artificial Intelligence

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In the past 12 months, artificial intelligence technology has been rapidly developing, offering staffing businesses innovative new tools to streamline operations and boost profits.

In fact, 76% of senior business leaders who responded to an Infosys survey cited AI as fundamental to the success of their organization’s strategy, and 64% believe that their organization’s future growth is dependent on large-scale AI adoption.

That means there’s a good chance your closest staffing industry competitors are incorporating artificial intelligence (AI) technology into their agency’s workflow. AI programs are developing rapidly, equipping staffing agencies with new tools that promise cost savings, enhanced time management, and other efficiencies.

While these developments are exciting, learning how AI works in 2023 and how its uses may seem overwhelming. Agency owners and management who are aware of AI’s capabilities and potential applications could gain a competitive edge as these tools become widely applicable.

Read on to explore how new AI programs and features could be applied in your staffing agency’s operations to save money and time.

Understanding AI in 2023

First, let’s dive into recent developments in the wider world of AI that pave the way for future innovation in staffing. Artificial intelligence is any form of computer problem-solving that completes a task commonly handled by humans.

Recent forms of AI, which power programs like ChatGPT, are significantly more capable and widely used than past programs. Called generative AI, these programs operate through complex algorithms and data analysis to create new and original content, such as text, images, or product designs. This is achieved by the AI system learning from vast amounts of data and identifying patterns and trends. It then uses this understanding – called “deep learning” to generate new content that is unique and innovative. However, AI programs capable of deciphering data and conducting trend analysis, for example, have been widely used for multiple years.

Combining data analysis and deep learning technology means that AI’s outputs can be relevant and tailored to your staffing agency’s needs. Businesses are leveraging this fast-evolving technology to create solutions-focused AI programs tailored to hyper-specific tasks. These include creating market forecasts, to more general ones like developing written content.

How AI could change the staffing industry

The AI market is growing rapidly as entrepreneurs develop automation technologies capable of handling a wide array of burdensome business tasks. These developments could fuel further widespread adoption of AI technology.

How AI is changing the staffing industry

Here are five ways AI is helping staffing companies increase efficiencies and stay ahead of the competition:


  1. Enhance recruitment strategies Sorting through candidate profiles, manually scheduling interviews and more is expensive and time intensive. AI programs can rank candidate skills, match candidates to roles based on location and more. These features speed up the selection process, while others standardize it: new AI tools can extract resume information to create simple reports aligned with your company’s style. An added benefit is A.I’s ability to minimize bias in recruitment processes. Software designed to assess candidate skills won’t be burdened by the same biases or prejudice which can impact traditional methods of candidate selection. For example. AI software ranking candidate skills and abilities would not take name, sexuality, or ethnicity into account, where as studies have found unconscious bias can emerge in even the most equitably-designed recruitment strategies.
  2. Analyze big data AI’s chief skill is its ability to analyze data quickly and accurately. This could be an invaluable use of the technology for staffing firms operating in a highly competitive market. For example, consider a staffing agency that has five years of data on a team working at major healthcare centers in the Northeast and Southwest. Depending on the nature of the agency’s records, AI programs could predict employee attrition rates, client repayment timelines, gauge the speed at which job positions are filled, and more. This data analysis could help staffing firms use past contractor experiences as a measuring point for future deals. This knowledge would make it easier to know which contractors are the most and least reliable.
  3. Speed up payroll Finance industry insiders predict AI will change how businesses handle payroll. This could be especially useful for staffing agencies. Payroll processing requires a lot of time and energy – especially if your firm pays workers every week. This pressure can make it easy for staff to input inaccurate or incomplete data, and even if this inconsistency is found fast enough, it still takes time to fix it.AI programs can spot errors in payroll processing and identify long-term patterns that could point to data issues. Through an ability to quickly interpret mountains of data, AI programs can spot errors in payroll processing and identify long-term patterns that could point to data issues. For example, if an employee incorrectly logs hours worked, AI technology can more consistently spot large variances in shift length compared to historical norms.
  4. Optimize scheduling While AI scheduling tools have been in use for multiple years, the recent boom in AI tech looks to speed up the development of programs which will allow staffing agencies to automatically forecast demand, schedule teams, and backfill shifts with ease. Often, agencies setting up multiple schedules are confronted with possible backlogs or errors that only become present in day-to-day operations.AI programs can help eliminate possible errors that occur when workforce demand exceeds a team’s capacity to properly schedule talent. Leveraging inputted datasets, AI can ingest historical scheduling information set shifts based on worker availability and company needs.
  5. Improve client communication AI chatbots and email tools could soon be saving staffing agencies money and time. Chatbots can be programmed to automatically pop up on your agency’s website or serve as a triage for customer concerns. With the ability to authentically respond to inquiries and common questions, AI chatbots can save customer service personnel hours and still effectively answer client questions. According to a Forbes Advisor survey, 73% of businesses use or plan to use AI-powered chatbots for instant messaging. In the competitive world of staffing, any tool that improves a prospect’s experience of your website, and connects them to information faster, could be a deciding factor in their final choice.


Artificial Intelligence could soon transform how agencies operate, enhancing efficiency and competitiveness.

AI-powered writing tools, recruiting software, data analysis, and others promise to revolutionize candidate selection, data analysis, payroll processing, scheduling, and client communication. By leveraging AI’s capabilities, staffing agencies can streamline their processes, make data-driven decisions, and provide superior services to clients.

Embracing AI technologies could soon no longer be an option, but a strategic necessity for staffing agencies aiming to stay ahead in the rapidly evolving market. Those who harness the potential of AI are likely to gain a decisive competitive edge and thrive in the dynamic landscape of the staffing industry.

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