Recruit Holdings’ July announcement that it would lay off approximately 1,300 employees—around 6% of its HR technology workforce—as part of a strategic move toward artificial intelligence signals a pivotal juncture for talent acquisition. Other major companies, including Meta and Microsoft, have made similar cuts to their staff to allow for greater focus on AI initiatives. With AI taking such priority for a growing number of businesses, what does this mean for the future of recruiting?
Members of the Senior Executive HR Think Tank—comprising experts in employee experience, talent strategy, DEI, performance management and AI in HR—offer compelling evidence and actionable strategies for leaders navigating this complex transition. Understanding what this move suggests about the future of recruiting is critical for enterprise leaders aiming to stay ahead of the AI curve.
“AI can find a resume; a strategic partner secures the talent that drives a business forward.”
Strategic Talent Partners Still Reign Supreme
With all the AI-driven layoffs, there’s been widespread speculation about whether artificial intelligence is replacing human recruiters. But Michael D. Brown, Senior Managing Partner at Global Recruiters of Buckhead, argues that this shift doesn’t signal the end of human-powered recruiting.
“Smart companies will leverage AI for transactional recruiting tasks,” Brown says. “This automation, however, only increases the value of true talent partners.”
As AI takes over high-volume, low-complexity recruitment tasks like resume screening, interview scheduling and automated outreach, the human recruiter’s role becomes even more crucial in executive search and leadership hiring.
“While AI can identify active candidates, it cannot build the trust required to engage high-performing passive talent—the game-changers who aren’t looking for a new role,” Brown says. “AI can find a resume; a strategic partner secures the talent that drives a business forward.”
Redefining Talent: AI, Freelancers and Hybrid Teams
The use of AI in recruiting isn’t just automating old processes—it’s redefining what we consider “talent” in the first place. Francesca Ranieri, Founder and Head of Talent Strategy at Frank, believes the most important change underway is a paradigm shift in how we source, structure and define work.
“Historically, talent acquisition filled full-time seats. Then came freelancers and contractors,” Ranieri says. “In the near future, recruiters won’t just hire people—they’ll source AI agents that handle whole functions, freelance pods and DAOs (Decentralized Autonomous Organizations), and hybrid teams of humans and machines.”
As companies like Recruit Holdings restructure around AI capabilities, recruiters must shift from “‘filling roles’ to finding capability,” says Ranieri—regardless of whether that capability resides in a person, a team or an AI system.
“AI will enable personalized candidate experiences … Humans will assess cultural fit.”
An AI and Human‑Centered Approach: Efficiency and Insight
While many HR leaders are rightly focused on AI’s potential to streamline recruitment processes, Laci Loew, Fellow, HR Analyst and People Scientist at the Global Curiosity Institute, emphasizes a more nuanced, collaborative future.
“AI will not replace humans in the talent acquisition process, but rather will augment their capabilities and make the process more efficient and data-driven,” Loew says. She outlines a “Human plus AI” model that divides responsibilities by strengths: Machines handle automation, forecasting and data analysis, while humans maintain alignment with business goals, assess fit and navigate complex negotiations.
This hybrid approach is gaining traction, too. According to LinkedIn Talent Solutions’ 2024 Future of Recruiting Report, companies using AI alongside human recruiters report greater efficiency without compromising candidate quality. Loew agrees: “Humans will ensure that the AI TA tools and systems align with the organization’s broader talent strategies.”
Human‑Centric Resilience: Upskilling, Mobility, Retention
As companies lean into AI, some—like Recruit Holdings—are trimming roles amid restructuring. But Britton Bloch, VP, Talent Acquisition Strategy and Head of Recruiting at Navy Federal Credit Union, warns that such reactive moves can carry significant long-term costs.
“When growth slows, companies are reactive and cut,” Bloch explains. “Visionary companies take a proactive approach via strategic workforce planning.” That includes upskilling employees for emerging roles, building internal mobility pathways and avoiding mass layoffs that damage trust and reputation.
For Bloch, workforce adaptability is nonnegotiable in an AI-driven age.
“AI is poised to automate lower-value, repetitive tasks, freeing human recruiters to add value where machines fall short,” she says. “Proactive organizations embed strategic workforce planning, internal mobility and talent development into their DNA, ensuring they emerge stronger, more adaptive and more human-centric.”
“Invest in the interview process, the candidate experience and interview questions that facilitate productive conversations and outcomes.”
Preserving the Interview and Candidate Experience
While AI brings speed and efficiency to recruiting, Lauren Francis, Founder and CEO of Mulberry Talent Partners, believes it’s critical not to lose the human touch—especially during interviews and candidate engagement.
Francis, who has built three recruiting agencies and overseen more than 10,000 placements, warns that organizations overly focused on automation risk alienating top talent. “Humans play a crucial role in the hiring process, as they are responsible for evaluating skills, fit, mindset, behaviors, outlook and other key factors,” she says.
She encourages organizations to view the interview not just as a screening process but as a relationship-building opportunity. She adds, “I suggest that organizations invest in their interview process, the candidate experience and interview questions that facilitate productive conversations and outcomes.” For Francis, human connection remains nonnegotiable.
Takeaways for Leaders
- Leverage AI for transactional efficiency while strengthening strategic talent partnerships. Use automation to speed sourcing, then deploy recruiters to build trust with passive, high‑impact candidates.
- Redefine talent beyond full‑time staff to include AI agents, freelancers and hybrid teams. Expand the universe of talent to those who can deliver capabilities, not just fill roles.
- Embrace a hybrid TA model. Let AI handle routine tasks and forecasting, while humans oversee fit, negotiation and alignment with organizational strategy.
- Invest in internal mobility and reskilling to foster adaptability. Build career pathways and redeploy talent before resorting to layoffs—and protect institutional knowledge.
- Elevate the interview and candidate experience. Even as processes speed up, human‑centric conversations remain pivotal in evaluating mindset, culture fit and future potential.
The Future of Recruiting
Recruit Holdings’ AI‑driven restructuring—resulting in the layoff of 1,300 roles and the consolidation of Glassdoor into Indeed—signals that recruiting is undergoing a profound transformation. AI is not merely adding tools to the process; it is reshaping the very DNA of talent acquisition.
The Think Tank’s insights converge on one central idea: The future rests not in human versus machine, but in their partnership. Organizations that lead this evolution will integrate AI to drive efficiency while doubling down on the irreplaceable human strengths of judgment, empathy, strategic vision and experience.
Moving forward, the smartest talent acquisition strategies will be those that weave AI into the human fabric of recruitment—not to replace it, but to elevate it.
