Flexing Talent Acquisition Capacity Will Introduce a Paradox of Choice

Prediction #5: Flexing TA Capacity Will Become More Tractable, But Introduce a Paradox of Choice

So far, we’ve discussed four of our five predictions about the future of generative AI and Talent Acquisition. Our fifth and final prediction (for now) is that GenAI will continue to influence the TA landscape as a whole, with leaders facing an imperative to adapt their operating models for greater efficiency and effectiveness. Optimizing operating models remains a pain point, and will only escalate with AI’s increasing prominence in recruiting.?

Talent Acquisition Will Centralize for Maximal Flexibility?

In the face of uncertainty about how GenAI will transform recruiting as we know it, we see TA teams moving away from the traditional, business-aligned model–where recruiters are tied to specific business units–and adopting a more centralized approach.?

Business-aligned models present risks for recruiters: job insecurity during hiring slowdowns or freezes and burnout during surges. Transitioning to a centralized structure where recruiters are aligned by skills or job families (e.g., technology, sales, or marketing), TA teams can fill positions across the organization while buffering against fluctuations in hiring demand.?

To maintain the relationships with business units, some organizations are introducing TA business partners (TABPs). They act as liaisons who ensure hiring plans align with organizational goals and gather data for strategic workforce planning. At the same time, recruiters outside of these roles will broaden their expertise by handling requisitions beyond their primary focus areas.?

GenAI plays a pivotal role for this shift to be successful. AI-powered tools enable recruiters to quickly upskill, providing insights into skills, market trends, and internal metrics. This innovation shifts the value of versatility from individual recruiters to tools, fostering flexibility without compromising depth or efficiency.?

The Decline of External Vendors in Favor of In-House AI?

Historically, external vendors like Recruitment Process Outsourcing (RPO) firms, agencies, and contractors have been vital for scaling TA capacity. However, as AI-powered tools become both more sophisticated and accessible, reliance on such vendors is declining.?

While RPOs often require lengthy onboarding and integration, and contractors may lack niche expertise, AI tools can perform these tasks more easily, giving TA teams the ability to scale internally without expanding headcount. As a result, TA teams are poised to reduce their dependency on external partners while building robust in-house capabilities.?

Platforms like Eightfold and Bearmery now offer automation for tasks such as candidate sourcing, talent mapping, and screening. These tools are fast, more cost-effective, and can be easier to integrate than RPO services or contractors.?

Navigating the Paradox of Choice?

AI comes with major advantages, but TA leaders will be faced with deciding when to rely on human-led solutions and when to invest in AI-driven alternatives.?

Emerging innovations, such as autonomous AI colleagues, further complicate this choice. For instance:

• Cognition Labs’ Devin is an AI software engineer capable of coding, debugging, and collaborating with human colleagues.?
• NVIDIA and Hippocratic.AI have developed AI-powered nurses who outperform humans at a fraction of the cost.?

While these solutions offer cost savings and scalability, they present possible ethical concerns or resistance from organizations hesitant to replace human workers. This paradox of choice requires TA leaders to carefully evaluate their options based on cost, efficiency, and alignment with organizational values.?

Next Steps for Talent Acquisition Leaders

1. Evaluate Current Scaling Mechanisms: Assess your go-to solutions for scaling TA capacity, such as RPOs, agencies, or contractors. Weigh the speed, cost, and efficiency of each against new AI-driven options that might offer quicker, more scalable alternatives.
2. Reconfigure Recruiter Alignment for Flexibility: Consider aligning recruiters by skills or job families rather than by specific business units to allow for more fluid scaling and reduce the risk of role-specific burnout or misalignment.
3. Leverage AI for Upskilling: Pilot AI tools that provide real-time training and insights, both to enable recruiters to adapt quickly to new business areas and reduce the need for ‘utility players’ with a large breadth of skills.

What This Means for the Future of Talent Acquisition?

GenAI will continue to reshape our industry. Everything from team structures to recruiter skill sets to the flow of recruiting and strategic workforce decisions will be impacted. As we continue learning about where AI excels, we’ll be able to strike the right balance between the cutting-edge power of AI and the irreplaceable value of the human touch.?

Importantly–and encouragingly–there is no single “right” solution to this challenge. Rather, we must continue assessing where TA is today, where we need it to be tomorrow, and building a plan from one path to the next.?

We’re actively mapping hundreds of TA practices incorporating GenAI – if you’re interested in being part of that work, reach out to our Head of Experienced Talent Research, Andrew Monroe.

In our next newsletter, we’ll be forecasting some TA trends we expect to see in 2025. Ensure you’re subscribed so you don’t miss it.