Over two-thirds (67%) of professionals believe AI will play a key role in talent hiring strategies by 2025, though concerns are rising about technology overshadowing the human element in hiring, according to fresh research from Korn Ferry.

The global consulting firm has released its 11th Talent Acquisition Trends report, revealing the top global trends expected to shape workforce dynamics in the year ahead, with evidence that the realities of relying on AI are starting to kick in.

In a survey of 400 talent leaders worldwide, 40% expressed caution about AI compromising the human side of recruitment and making the process more impersonal for candidates, while 25% worried about the risk of algorithmic bias leading to unfair outcomes.   

Talent leaders also reported concerns that AI can’t handle hiring challenges alone, such as identifying recruitment gaps or spotting potential, and needs to be balanced with human oversight.

Despite those concerns, most firms are planning to ramp up the use of tech in their hiring process next year. According to the report, 27% of employers plan to use AI for better search and vetting capabilities, 26% plan to increase their people analytics, and 21% want to use automation tools to manage employer-candidate relationships.

Expectations are high, with more than a third (39%) of respondents saying that using advanced technology will result in a smoother hiring process for both candidates and employers.

The report also digs into how the rapid escalation of AI has forced employers to redefine job roles, with less focus on qualifications and more on critical skills, with one in four talent leaders (39%) recognising the value of skills-based hiring.

Among the critical skills companies will be looking for next year are leadership skills (69%), technical skills (59%), communication skills (58%), and problem solving abilities (58%).

While 45% of talent professionals say culture and employer value proposition (EVP) are crucial in recruitment, employees have different priorities. More than two thirds (67%) said they would stay with a company if it offered upskilling and advancement opportunities – even if they didn’t like their job – but less than one-third (30%) of companies are delivering paths for advancement.

“As we look to 2025, organisations are challenged with striking a balance between competing factions: technology and human connection, efficiency and personalisation, flexibility and structure,” said Jeanne MacDonald, chief executive officer of recruitment process outsourcing at Korn Ferry. 

“Leaders who can blend data-driven insights with personalised strategies will position themselves to not only attract and retain top talent, but also achieve lasting business impact by mitigating risk with intentional action.”

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Last year, a Gartner survey predicted a shortfall in talent across industries, with just 14% of procurement leaders confident they had the right people with the right skills to meet the future needs of business. 

That has been borne out by more recent data from this year’s Business Barometer report published by The Open University, which found that over half (56%) of Scottish organisations are reporting worrying skills shortages, particularly in AI and green technologies, with firms missing out by not investing enough in widening their talent pools.