º£½ÇÊÓÆµ enterprises could potentially release £532bn in productivity gains through AI-powered recruitment, new LinkedIn research has found.
The study indicates that artificial intelligence solutions, including LinkedIn's proprietary 'hiring assistant' platform, can liberate recruiters from routine administrative duties such as CV filtering, job advert creation and candidate sourcing, enabling them to concentrate on strategic recruitment choices, as reported by .
Janine Chamberlin, º£½ÇÊÓÆµ country manager at LinkedIn, told City AM: "Driving AI adoption is more than just a tech challenge, it's a talent challenge.
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"Professionals across all functions need both the right tools and the right training to really unlock AI's potential."
LinkedIn references anecdotal evidence from companies like Insite, which documented a 20 per cent turnover boost following the implementation of AI-enhanced recruiting.
Throughout industries spanning healthcare, engineering and manufacturing, talent acquisition specialists face mounting pressure to deliver swifter, more streamlined hiring whilst securing candidates with progressively niche expertise.
AI at every stage
However, LinkedIn's optimistic forecasts are being balanced by wider sector studies emphasising equity and prejudice issues.
Research involving 1,000 º£½ÇÊÓÆµ HR and recruitment experts by background verification firm Zinc discovered that 73 per cent of talent specialists now employ AI during some phase of the hiring journey, yet 71 per cent indicated that automation diminishes individualisation within the procedure. In the meantime, more than a third of companies fully automate candidate rejections.
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Charlotte Hall, co-founder of Zinc, commented: "AI is supposed to make hiring smarter, not colder. Candidates want clarity and connection, not an experience that feels generated by a machine. When automation replaces empathy, the relationship breaks down."
Studies also indicate that AI tools can perpetuate bias. Research conducted by the Alan Turing Institute and the Institute for Ethical AI in the º£½ÇÊÓÆµ has consistently highlighted that algorithms trained on historical hiring data can reproduce gender, racial, and socioeconomic disparities.
AI systems may unintentionally disadvantage women or ethnic minorities, as well as those from less traditional career paths, by favouring candidates with backgrounds similar to those already in the organisation.
Mind the skills gap
Even beyond concerns about fairness, the adoption of AI in recruitment is far from widespread.
LinkedIn discovered that nearly eight out of 10 º£½ÇÊÓÆµ recruiters claim they lack the necessary training to effectively utilise AI, despite 90 per cent reporting that chief executives are depending on them to build the workforce of the future.
Chamberlin told City AM: "Nearly eight in 10 have told us they don't yet feel well-equipped to use AI for hiring, that's something we need to fix."
Research by Accenture reveals that 80 per cent of AI job postings are concentrated in London, leaving regions outside the capital trailing behind in AI skills and training.
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Meanwhile, EY data indicates that tech expertise is increasingly sought on financial services boards, but many firms still lack the internal capability to manage AI-related risks or embed AI ethically.
Efficiency vs empathy
The tension between efficiency and human judgement is becoming acute.
Whilst AI can accelerate candidate screening, 84 per cent of recruiters report that senior hires still take over a month, with 15 per cent taking more than two months, giving disengaged candidates time to look for alternatives.
Meanwhile, 40 per cent of new hires leave within six months due to unmet expectations, pointing to the limitations of generated processes in matching candidates to relevant roles.
Chamberlin argued that AI can be a force for smarter hiring rather than faster hiring alone.
"While improving efficiency and productivity is important, the reason recruiters got into this role is to help people get jobs and find the right candidate for the role", she told City AM.
"That's what we are doing with Hiring Assistant, helping companies connect with the right talent with the right skills for the role at hand."
Yet AI's promise will not be realised without careful management. Beyond training and tools, companies must implement robust governance, audit algorithms for bias, and ensure human oversight remains central.
Reports from Thomson Reuters and the Institute for Ethical AI suggest that unchecked dependence on automated systems could intensify inequality and pose reputational risks.