How will AI affect the job market?

By Matt Hayes | 10th April 2024

AI tools have been a mainstay of the recruitment industry for years to expedite the assessment of candidate suitability in the sea of job applicants.

But with the acceleration of AI, particularly in the last year, being more accessible to the average job seeker, how will AI affect the job market? There is little doubt that both employers and employees will leverage multiple AI solutions to get a competitive advantage. But what are the broader ramifications or indeed, benefits of AI.

In this blog, we going to review potential trends and opportunities that evolving AI could affect in the job market, for both the employer and employees.

  1. Job enabler or eliminator?

Our kneejerk reaction when a new technology hits is to assume the worst. Will AI remove the need for the human element in some jobs? Likely. With a drive for efficiency, AI will eliminate repetitive tasks that consume time and resources and that are prone to errors and inconsistencies. As a result, improved performance, consistently.

But we foresee AI as an enabler. A tool that works with a human to reduce time-consuming and mundane tasks, consequently enabling people to focus on more meaningful, high-value output.

  1. New opportunities

It’s only natural that a globally-adopted and significant technology advancement, like AI, create new opportunities for jobs in that field. The advancement of AI will increase jobs as organisations took to capitalise on AI systems that bring efficiency and profitability, therefore requiring humans control these systems.

In addition, specialist skills will be required therefore offering the opportunity for technology professionals like software developers and engineers to upskill and give themselves a competitive advantage.

Even at a basic level, the AI tools now available to candidates means that they have greater access to jobs coupled with the tools to enable quicker application that gets them noticed by hiring managers. Read more on how AI can help job seekers.

  1. Access to a wider talent pool

The benefit of AI is that it can work at breakneck speed when sourcing potential candidates. If set correctly, the algorithms can scan social and professional networks quickly to uncover potential employees based on skills required and collate them into a targeted project. Therefore increasing not only the volume of relevant candidates but efficiency for hiring managers.

At the same time, AI can initiate unbiased and automated personalisation to engage with the active talent pool reducing this risk of potential prejudice and  increasing response rate.

  1. Smoother recruitment process

AI can contribute to a smoother recruitment process, particularly for high-volume recruitment requirements. That’s because AI offers the ability to screen CVs automatically to highlight only the qualified candidates. As a result, talent teams and HR Managers have more time to do what they’re great at, choosing best-fit candidates for their organisation.

Take it a step further to conversational AI whereby AI can start interactions with potential candidates to learn more about their experience and background and improve suitable job matching.

  1. Employee satisfaction and retention

A significant percentage of a company’s value is down to having a skilled workforce. Therefore, organisation can’t afford to have talent attraction and retention strategies that don’t hit the mark. Outside of the benefits of the talent attraction techniques we’ve mentioned, AI can also have a positive impact on employee satisfaction and retention.

Take performance management for example. AI systems can consume information from multiple sources and analyse that data to provide real-time feedback, performance measurements and goal tracking. As a result HR managers can have meaningful performance discussions with their employees. What’s more, this  data can help employees identify flight risks and recommend ways to reengage those valuable employees.

How about employee engagement and wellbeing? Well, AI can help with that too. AI chatbots can be plugged into existing systems enabling employees access to personalised assistance and guidance in real time, therefore offering immediate support and answers to their questions. As a result, improving engagement.

No need for alarm bells just yet

The ‘doomsdayers’ might already be ringing the AI alarm, but in our opinion, the shift isn’t going to be instant. Make no mistake, it will have an impact, but we believe that it will be a shift or in some cases, an improvement, as opposed to the end of all jobs as we know it.

We’d love to hear from organisations who have implemented AI to improve hiring, attraction and engagement practices within their HR strategies. Or share your views on how you think AI will affect the job market in the future.

Matt Hayes