Advancements in AI (Artificial Intelligence) have made sweeping changes across the UK in recent years ; with significant effects on recruitment and employment in particular.
We wanted to understand exactly how big an impact AI has made on recruitment, so we studied and analysed all of the public information we could find, from government data to consultancy reports and recruiter surveys.
Then we compiled all of our findings below… Enjoy.
Key AI in recruitment statistics
- The use of AI in recruitment has tripled in the last year
- 3 in 10 UK employers are implementing AI in their recruitment process
- 43% of large companies are using AI to interview candidates
- 70% of recruiters say that AI is improving their hiring decisions
- Using AI reduces the average cost of hiring a candidate by 71%
- Recruiters save an average of 4.5 hours per week by using AI
- 46% of UK job seekers are using AI in their job search
- 16% of recruitment jobs could be replaced by AI by 2030
- 8 million UK workers are currently at risk of being replaced by AI
- Job vacancies requiring AI skills are growing 4 times faster than all other jobs
- AI is predicted to boost UK GDP by £550bn by 2035
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How many companies use AI to recruit in the UK?
Just how widespread is the use of AI in recruitment of staff in Britain today?
- A study by the Institute of Student Employers found that the use of AI in recruitment has tripled in the last year, with around 3 in 10 employers using AI to recruit candidates in 2023, compared to just 1 in 10 in 2022.
- The BBC reported that 42% of UK tech firms are using AI to screen and recruit candidates in 2024.
- A recent SSR study revealed that in the UK, 70% of enterprise-size businesses use ATS (applicant tracking system) software to screen CVs and 20% of small and medium businesses also do.
- Research from Ernst & Young found that 90% of large businesses in the private sector have adopted AI into their recruitment process.
Which companies do not use AI to recruit?
The British Chamber of Commerce recently reported that 48% of UK SMEs (small to medium sized enterprises) have no plans to implement AI into their recruitment process.
How is AI used in recruitment?
A REC (Recruitment and Employment Confederation) survey of senior HR professionals uncovered the recruitment functions that employers are using AI for the most:
- Candidate sourcing activities, such as writing job adverts (54% of respondents)
- Assisting with candidate interview and selection (44%)
- Screening candidate applications (29%)
- Candidate onboarding administration (27%)
AI in job interviews
Adecco recently reported that 43% of large companies are using some form of AI to interview potential hires – which involves candidates answering automated questions whilst being filmed, without a person from the employer being present.
Does AI make the final hiring decision?
A workable survey found that less than 1% of hiring managers rely on AI to make the final hiring decision.
Are companies firing with AI?
In 2019 The Verge reported that some Amazon Fulfilment centres were using AI to automatically track and fire employees who did not meet productivity targets, totalling to 10% of their staff annually.
What benefits does AI recruitment bring to employers?
A Ranstad survey found that 7 in 10 recruitment departments say that AI is improving their hiring decisions.
Here are some key benefits that hiring managers and recruiters are highlighting.
Cost savings
- Using AI reduces the average cost of hiring a candidate by 71% and increases recruiter efficiency by up to three times, according to research by Congnition X.
- A LinkedIn survey found that 89% of recruiters agree that using AI decreases their average time-to-hire (the amount of time taken to fill a vacancy)
- 32% of recruiters say that using AI leads to a significant cost saving for their business. (LinkedIn)
Time savings
HR morning reported that recruiters save an average of 4.5 hours per week by using AI to carry out repetitive tasks.
Productivity improvements
According to data from Bullhorn, recruiters who use automaton in their process, fill 64% more vacancies than those who don’t.
What benefits do recruiters value most from AI adoption?
A survey of recruitment professionals carried out by the Institute of Student Employers found what are considered to be the 5 biggest benefits recruiters see from adopting AI in the recruitment process:
- Increasing speed and efficiency (83% of respondents)
- Making it easier to analyse large volumes of data (64%)
- Automating repetitive tasks (59%)
- Save costs of hiring recruitment staff (17%)
- Enhancing the chances of finding the best candidates (8%)
Risks & concerns of using AI in recruitment
Although AI brings many benefits to recruitment, there are also significant risks and concerns for both job seekers and employers.
Job seeker concerns about AI in recruitment
- A study by Science Direct found that 67% of job applicants think that AI tools lack the nuances of human judgment or human touch.
- 38% of job seekers feel there are ethical issues with using AI in the staffing process. (Science Direct)
- Carmichael Fisher Search found that 73% of candidates would be deterred from applying to a company, if they knew AI was used in the screening process.
- A TotalJobs job seeker survey found that 3 quarters of Brits think that the use of AI in a hiring process should be fully disclosed to all candidates.
- 80% of job seekers are opposed to AI making the final hiring decision for a job hire (TotalJobs)
Recruiter and employer risks of AI
- A study by McKinsey revealed that 16% of recruitment jobs globally could be replaced by AI by 2030.
- According to the British Chamber of commerce 88% of companies believe that AI will lead to a net decrease of jobs in their sector.
Are job seekers using AI?
Whilst the use of AI is widespread by employers in the recruitment process ; it seems that job seekers are also adopting the technology.
- Beamery’s Talent Index survey found that just under half (46%) of all UK job seekers are using some form of AI in their job search – this includes activities such as using an AI writing tool (such as ChatGPT) to write all or part of their CV.
Does AI remove bias and discrimination in hiring?
From what we currently know, it seems that AI is not only unable to remove bias from recruitment, but actually seems to aid it.
- A 2020 study into AI use in recruitment by Cambridge University found that “using it to reduce bias is counter-productive.”
- In 2018 Amazon announced it stopped the development of an AI-powered recruitment tool because it could detect gender from CVs and discriminated against female applicants.
Number of jobs being replaced by AI in the UK
How many jobs are being replaced by AI now and in the future?
- Analysis by the Institute for Public Policy Research found that 8 million workers in the UK are currently at risk of being replaced by AI.
- A study by the McKinsey Global Institute reports that by 2030, at least 14% of employees globally could need to change their careers due to AI advancements.
- A Goldman Sachs study found that 300 million jobs could be replaced by AI automation.
Jobs most at risk of being replace by AI
Goldman Sachs found that these are the 10 jobs most at risk of being replaced by AI.
| Rank | Job title | Average salary |
|---|---|---|
| 1 | Data Entry Assistant | £42,764 |
| 2 | Coder | £29,627 |
| 3 | Software Engineer | £65,601 |
| 4 | Blockchain Engineer | £147,500 |
| 5 | Clinical Data Manager | £65,000 |
| 6 | Mathematician | £32,500 |
| 7 | Web & Digital Interface Designer | £38,533 |
| 8 | IT Support Analyst | £34,444 |
| 9 | Proofreader | £37,218 |
| 10 | Journalist | £30,490 |
(Source: Goldman Sachs)
Jobs least at risk of being replaced by AI
Conversely, Goldman Sachs found that these are the 10 safest jobs, least likely to be replaced by AI.
| Rank | Job title | Average Salary |
|---|---|---|
| 1 | Oncologist | £201,243 |
| 2 | Orthodontist | £113,576 |
| 3 | Paediatrician | £102,022 |
| 4 | Judge | £100,000 |
| 5 | CEO | £90,868 |
| 6 | AI/ machine learning engineer | £90,139 |
| 7 | Paving/surfacing/tamping equipment operator | £88,800 |
| 8 | Politician (*salary for MP) | £86,584 |
| 9 | Surgeon | £64,141 |
| 10 | Ethical hacker | £57,892 |
(Source: Goldman Sachs)
Jobs gained through AI
Although many jobs are predicted to be lost through automation, there are some signs that AI could actually create jobs in certain UK sectors.
- The Telegraph recently reported that 50% of UK bosses say that AI will drive an increase in their headcount over the next 2 years.
- PWC research found that jobs requiring AI skills are growing 5 times faster than all other job sectors, and UK employers are willing to pay 14% more for candidates with AI skills.
AI in the workplace statistics
What are the general benefits of AI in the workplace in relation to productivity and other business outputs?
- A report from Yell found that the average small business in the UK could save £29,000 per year by adopting AI into their processes.
- PWC researchers found that productivity in AI exposed industries is growing 4 times faster than industries with no AI exposure.
- According to KPMG, the adoption of AI could add 1.2% to the level of UK productivity.
Financial and economic impact of AI adoption
What are the broader impacts of AI on society and the economy?
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- The Institute for Public Policy Research state that if handled correctly, AI adoption in the workplace could increase GDP by 4% (£92bn per year)
- The UK government’s National AI Strategy has raised over £20bn in private investment into AI since 2016.
- Microsoft predict that AI could boost UK GDP by £550bn by 2035.
- In February 2024 TotalJobs reported that the AI recruitment industry is valued at $590 billion.
Sources
We sourced the above information and data from the following web pages:
- Institute of Student Employers – Employers using AI to recruit graduates and apprentices triples: https://insights.ise.org.uk/home_featured/blog-employers-using-ai-to-recruit-graduates-and-apprentices-triples/
- Adecco – AI’s Impact on Your Virtual First Impression: https://www.adecco.com.au/ais-impact-on-your-virtual-first-impression-navigating-video-interviews-with-confidence/
- Beamery – Talent Index: https://beamery.com/resources/news/the-ai-employment-revolution-over-half-of-job-seekers-in-uk-have-noticed-ai-used-during-recruitment-process
- Silicon – AI To Fundamentally Change Recruitment Process: https://www.silicon.co.uk/e-innovation/artificial-intelligence/ai-to-fundamentally-change-recruitment-process-515629
- British Chamber of Commerce – HALF OF BUSINESSES HAVE NO PLANS TO USE AI: https://www.britishchambers.org.uk/news/2023/09/half-of-businesses-have-no-plans-to-use-ai/
- The Telegraph – AI will mean companies hire more staff, not less, say bosses: https://www.telegraph.co.uk/business/2023/06/08/ai-will-mean-companies-hire-more-staff-not-less-say-bosses/
- Personnel today – Little appetite for AI recruitment in HR, survey finds: https://www.personneltoday.com/hr/little-appetite-for-ai-recruitment-in-hr-survey-finds/
- BBC – AI hiring tools may be filtering out the best job applicants: https://www.bbc.com/worklife/article/20240214-ai-recruiting-hiring-software-bias-discrimination
- Employer News – Recruiters using automation fill 64% more job vacancies: https://employernews.co.uk/news/recruiters-using-automation-fill-64-more-job-vacancies/
- Sonovate – The benefits (and the downsides) of AI for the recruitment sector: https://www.sonovate.com/blog/the-benefits-and-the-downsides-of-ai-for-the-recruitment-sector/
- LinkedIn – Measuring the ROI of AI Recruitment: https://www.linkedin.com/pulse/understanding-roi-implementing-ai-recruitment-ceo-processica-8npcf/
- The Verge – How Amazon automatically tracks and fires warehouse workers for ‘productivity’: https://www.theverge.com/2019/4/25/18516004/amazon-warehouse-fulfillment-centers-productivity-firing-terminations
- BBC – AI tools fail to reduce recruitment bias – study: https://www.bbc.co.uk/news/technology-63228466
- Science Direct – Applicants’ perception of artificial intelligence in the recruitment process: https://www.sciencedirect.com/science/article/pii/S2451958823000362
- CF Search – The impact of artificial intelligence within the recruitment industry: https://cfsearch.com/wp-content/uploads/2019/10/James-Wright-The-impact-of-artificial-intelligence-within-the-recruitment-industry-Defining-a-new-way-of-recruiting.pdf
- TalentPlace – Which HR roles will be replaced by AI: https://talentplace.com/blog/for-recruiters/which-hr-roles-will-be-replaced-by-ai/
- Institute for Public Policy Research – Up to 8 million UK jobs at risk from AI unless government acts: https://www.ippr.org/media-office/up-to-8-million-uk-jobs-at-risk-from-ai-unless-government-acts-finds-ippr
- The Manufacturer – Businesses could save over £29,000 per year with artificial intelligence: https://www.themanufacturer.com/articles/businesses-could-save-over-29000-per-year-with-artificial-intelligence/
- Microsoft – AI could boost UK GDP by £550 billion by 2035, research shows: https://news.microsoft.com/en-gb/2024/05/16/ai-could-boost-uk-gdp-by-550-billion-by-2035/
- PWC – Artificial Intelligence (AI) exposed sectors see a fivefold increase: https://www.pwc.co.uk/press-room/press-releases/research-commentary/artificial-intelligence–ai–exposed-sectors-see-a-fivefold-incr.html
- KPMG – Productivity boost from Generative AI: https://kpmg.com/uk/en/home/media/press-releases/2023/06/productivity-boost-from-generative-ai.html
- Independent – Revealed: Top 20 jobs safest from AI takeover: https://www.independent.co.uk/news/uk/home-news/ai-chatgbt-jobs-safe-lost-b2474974.html