AI boosts productivity in Australian talent life cycle, says Randstad report

Recent insights from Randstad Enterprises' latest Talent Trends report have revealed that artificial intelligence (AI) is leading a transformation in productivity across all aspects of the talent life cycle in Australia. An overwhelming majority, 86%, agree that AI, in conjunction with Big Data, is enhancing talent attraction, engagement, and retention.

The Talent Trends report, which surveyed 1,000 C-suite and human resource leaders across 21 international markets, suggests keen adoption of AI to detect gaps within the workforce and identify opportunities for talent mobility, with 86% and 88% respectively utilising the technology for these purposes. Furthermore, AI is being employed by 35% of respondents to identify high-potential employees for promotion and leadership opportunities, and by 20% to spotlight individuals with specific skills.

AI search and match technology has been invested in by approximately 73% of HR leaders. A nearly equal number have also incorporated chatbot or text screening (71%), and internal talent mobility technologies (69%).

Despite a clear reliance on AI, looming fears of over-reliance also exist juxtaposed with concerns over the rapid pace of digital transformation, with 69% of HR leaders worried they cannot keep up. These concerns amplify as 82% report an increasing skills gap, and 76% find themselves having to do more with less.

Over-reliance on automation concerns 37% of HR leaders, while the same proportion worries about employees sharing proprietary information with external AI tools. Additionally, one-fifth (20%) are anxious about the risks of AI amplifying bias or being deployed irresponsibly, unfairly, or unethically.

Despite these concerns, 61% of HR leaders plan to increase their budgets for AI, machine learning, and automation. David Owens, Founder and Managing Director of HR Partners by Randstad, comments on the matter: "Our research shows we are firmly in an age when artificial and human intelligence can together achieve an optimised workforce unlike any before it."

Owens continues, "While HR leaders must continue to urgently adopt innovative strategies to ensure agility in a rapidly transforming global employment market - particularly as the skills gap continues to widen - the question is how can they do it feasibly and ethically. Retaining the human element within the human resources will be a key step to maximising the potential of these technologies."

The 2024 Talent Trends research is a survey of 1,076 C-suite and human capital leaders at global and regional organisations across 21 markets worldwide. Conducted by a third party on behalf of Randstad Enterprise, survey panels are composed of business leaders who influence both strategic and operational decisions for their organisations. Online surveys were conducted via external panels during Q4 of 2023. Interviews were self-administered and could be taken across devices (including mobile phones, tablets, desktops and laptops).

Randstad Enterprise is the global talent solutions provider, enabling companies to create sustainable business value and agility by keeping people at the heart of their organisations.