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Why AI Will Never Replace Recruitment Agencies

Contract staffing agencies

Table of Content

  • Introduction
  • Human Resources Needs Humans
  • AI Can't Foster Relationships
  • AI Isn't Persuasive
  • Only Humans Are Capable of Empathy
  • Humans Adapt to Scenarios Faster
  • AI Will Not Sense Intelligence & Emotion
  • Professional Guidance
  • AI Could be Biased
  • Conclusion
  • FAQ's


Ever since its arrival, Artificial Intelligence (AI) has reshaped just about every industry with its ability to automate several tasks which saves time by increasing efficiency and ultimately increasing profitability. However, there is one industry in which AI's ability to replace human resources has not taken effect, and that is recruitment agencies and contracting staffing agencies. There are a few reasons why this shift won't come into effect now or ever!

Human Resources Needs Humans!

The very words Human Resources which undertakes recruitment processes in a company is proof enough that this department deals with people. Only people are able to understand the complexities associated with dealing with and managing human well-being.

Using AI would fall short of the requirements to completely comprehend what employees within an organization are experiencing and how to improve office culture. Every enterprise company will always have a human resources department, with actual humans!

AI Can't Foster Relationships

When you think of human resources and a recruitment agency, one thing comes to mind. That is the important relationship that is forged between the recruiters and candidates.

For a strong network between candidates and recruitment agencies, there needs to be immense trust, communication, and reliability between all members. Humans are social and will communicate better with each other as opposed to answering questions from a programmed AI bot.

AI Isn't Persuasive

Recruitment agencies aren't just about connecting the perfect candidate with the perfect job. In some instances, they even have to persuade the candidate that the job is the best choice for them. This happens when a recruiter senses a candidate is shy or willing to settle for less.

AI would never be able to sense this, nor would it be very effective at trying to convince candidates to take a job. This is because they can only judge a candidate based on hard facts on their resume.

Not to mention, AI wouldn't do well in negotiating offers and the finer details on which contract staffing services are based. Human recruiters will always be willing to listen and understand where candidates are coming from and make decisions based on this.

Only Humans Are Capable of Empathy

When a candidate has a gap year or several job changes on their CV, AI may cast them aside and deem with unworthy for fitting positions. A recruitment agency would ask questions and understand personal situations that have led to the gaps and sudden job changes. That compassionate edge is not something that can be taught to AI.

More often than not, good candidates are rejected due to a lack of empathy, a characteristic needed by recruiters of today. In such cases, human judgment and empathy possessed by humans cannot be replaced by algorithms and limited data on which hiring technology depends.

Empathy and the ability to understand emotions are the core reasons why AI hasn't yet replaced humans in all walks of life!

Humans Adapt to Scenarios Faster

Suppose a company requires contract staffing services on an urgent basis, AI would require its algorithm to be rewritten to suit the scenario. This is a painstaking process that will also consume a lot of time. This would be far from ideal for the hiring company and the efficiency of the recruitment process.

AI Will Not Sense Intelligence & Emotion

What makes the perfect candidate or how do you compare two candidates that seemingly have the same experience and qualifications? It usually comes down to the personal character of the candidates.

Deeper insight into the nature of the candidate will determine their ability to fit into the organization and react accordingly to any situation to provide a positive outcome.

Emotional stability and patience are two virtues required by candidates and unfortunately, AI would not be able to gauge these qualities in an individual at all. However, human recruiters are able to tell almost immediately.

Professional Guidance

Recruiters are also capable of offering their own advice on certain decisions and situations and many candidates can gain knowledge and inside insights into hiring and company culture which may impact their decisions and ability to navigate corporate life.

AI would not be able to provide this valuable feedback to candidates because everything it knows is due to input and a limited scope of data and algorithms. As a result, the process lacks the extra support and guidance that humans are able to provide to each other.

AI Could be Biased

AI is based on an algorithm, it uses this algorithm to make decisions, in this case, select a candidate or shortlist a list of candidates. What the algorithm says is what AI does, so in some cases, the algorithm could be wrong or lacking in terms of clauses.

This could result in biased results! Having recruiters means they will be able to adjudge candidates based on more than what is put on paper. This is important since the perfect candidate has more than just qualifications but also temperament and the ability to stay calm and get the best out of themself in every situation.


AI has proved to be a groundbreaking technology in a range of fields, but it falls short of being an adequate tool to replace recruitment agencies, especially those offering contract staffing services. This is because AI is still unable to grasp the very thing that makes us humans, emotion! So while it is useful as an addition to help recruiters manage workload and boring repetitive tasks, it cannot fully replace human recruiters, nor will it ever be able to do a better job.


Q.) Despite these drawbacks, does AI find use in recruitment and particularly contract staffing services?

Ans. Although AI cannot be used to make the final hiring call it is used to automate repetitive tasks that would otherwise prove to be time-consuming. Additionally, it can be used in conjunction with human resources to ensure technology is leveraged to give better results, faster!

Q.) Could AI adapt better than recruiters to the changing job market?

Ans. AI would struggle to adapt to the sudden ever-changing requirements of organizations. Human recruiters communicate easier and faster, often resulting in a rapid process that yields highly suitable candidates.

Q.) Will AI ever completely replace recruitment agencies?

Ans. It's highly unlikely that this will happen. This is because AI lacks the human element that is required to completely assess a candidate on all grounds. It is likely that AI will remain a helpful tool but not a complete substitute for recruitment agencies. It can be used to save time and cut costs.

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