2X More Employers Now Using AI in Recruitment: Reveals Report

The adoption of artificial intelligence (AI) in the recruitment industry has seen a dramatic rise, as detailed in iHire’s 2024 State of Online Recruiting Report, released on August 20. The report highlights that 14.7% of employers are now leveraging AI for recruitment, a significant increase from just 4.9% in 2023.

AI tools are not only transforming employer practices but are also becoming popular among job seekers. In 2023, 17.3% of job seekers used AI to craft their résumés or cover letters, a sharp rise from 2.8% in the previous year.

In addition to AI adoption, the report delves into several key trends shaping the online recruiting landscape:

1. Unqualified Candidates: A prominent challenge faced by employers is the surge in applications from unqualified candidates, with 63.3% of employers citing this as a primary hurdle. Additionally, 51% of employers reported that unresponsive applicants are a significant issue in the hiring process.

2. External Economic Factors: Job seekers appear to be more anxious about economic instability than employers, with 45.3% expressing concerns that economic uncertainty could impact their job search or career progression in the coming year. In contrast, 34.0% of employers feel that the economy will affect their hiring capabilities.

3. Political Climate: The study also notes that 17.1% of job seekers and 8.7% of employers are worried about the potential impact of political discourse on the workplace, particularly in light of the upcoming U.S. election.

4. Job Board Usage: Job boards remain a critical tool for both employers and job seekers. The report reveals that 68.1% of companies use job boards for most or all of their hiring needs, with 34.3% predicting an increase in usage by 2025. On the job seeker side, 67.0% applied for jobs through a job board in the past year, and 69.7% routinely visit a company’s website before applying for a position listed on a job board.

5. Ghosting: The issue of ghosting continues to plague job seekers, with 54.7% citing the lack of employer responses as a significant challenge in their job search. Additionally, 45.0% fear that this trend could hinder their ability to secure employment in the coming year.

Research Methodology

In June 2024, iHire conducted a survey through the Qualtrics XM platform, gathering insights from 1,637 job seekers and 586 employers across 57 industries in the U.S. Participants were sourced from iHire’s job seeker and employer databases. Percentages are rounded to the nearest tenth. For many questions, respondents could select multiple answers, resulting in totals exceeding 100%. Additionally, some respondents opted to skip certain questions.

About iHire

iHire is a premier career-focused employment platform that supports a network of 57 industry-specific talent communities, including WorkInSports, iHireVeterinary, iHireDental, iHireConstruction, and iHireChefs. For over 20 years, iHire has been at the forefront of talent acquisition, utilizing advanced job matching technology and deep industry expertise to connect job seekers with employers in their targeted fields. By adopting an industry-specific, candidate-centric, and data-driven recruitment approach, iHire enables candidates to find meaningful careers and helps employers access unique, high-quality talent more efficiently and effectively than general job boards.