How Recruitment Agencies Are Using AI and What It Means for Your Business 

AI continues to dominate headlines across the recruitment landscape, but beneath the surface, its real-world impact is more measured and nuanced. For clients relying on agency support, understanding what’s changing (and what isn’t) is key to making confident hiring decisions. 

In this blog, we explore how recruitment agencies are integrating AI into their workflows, what trends are emerging as we move through 2025, and why the most successful firms are prioritising technology without losing the human connection that underpins great hiring. If you partner with agencies to source temporary staff, here’s what to expect and what to look out for. 

What AI Looks Like in 2025 and What’s Ahead for 2026 

AI in recruitment is no longer a concept on the horizon, it’s here, active, and accelerating. According to Bullhorn’s 2024 Global Recruitment Insights and Data (GRID) report, 58% of UK recruitment agencies have begun experimenting with AI, with the focus squarely on enhancing productivity and efficiency. Tools are being adopted to streamline workflows, reduce admin burden, and flag compliance risks. But even as automation expands, one thing is clear: decision-making remains human. That’s exactly how most people want it to stay. 

In fact, a 2024 Pew Research study found that over 70% of adults are opposed to AI making final hiring decisions, with only 7% supporting it. This sentiment reinforces what many in the industry already know, trust in recruitment comes from people. Clients, candidates, and consultants alike value the human judgement, insight, and ethical understanding that machines cannot replicate. 

Looking ahead, AI will continue to support recruitment by enabling better, faster service, not by taking control. The AI recruitment market is projected to grow at 6.78% annually, reaching $1.12 billion by 2030, but growth doesn’t mean disruption for its own sake. The most successful agencies are using AI to support consistency, improve speed, and uphold quality, all while ensuring that humans remain in the driving seat. 

For clients, this has real implications. It means your agency should still be focused on delivering the right candidate, not just a fast match. It means accountability, context, and care continue to shape the outcomes, not just algorithms. Technology may clear the path, but people still lead the way. 

When Your Agency Uses AI and What It Really Means 

AI in recruitment often grabs headlines with promises of revolution, fully automated hiring, systems matching candidates at lightning speed, and end-to-end decision-making without human input. 

But that’s not the reality for most recruiters. And it likely won’t be. 

In practice, AI is finding its place more quietly. It’s being integrated into operational workflows to support rather than replace. It helps reduce administrative pressure. It flags compliance risks earlier. It automates time-consuming tasks, giving recruiters more space to focus on what they do best. 

Bullhorn’s 2025 GRID report supports this. It shows that AI and automation are most commonly used for: 

• Searching for candidates (56%) 

• Reducing admin (51%) 

• Screening applicants (42%) 

But critically, these are support tools, not decision-makers. The same report highlights that firms automating tasks like screening are 86% more likely to place candidates in under 20 days, showing the impact of efficiency without sacrificing judgment. 

What’s also telling is that “search and match” is the most in-demand use case for AI in 2025, and the most time-consuming task, taking nearly 15 hours a week on average. That’s where agencies want support. They want to empower their people, not remove them. 

Bullhorn’s outlook for 2025 is clear: the most successful firms will use AI to enhance recruiter productivity, standardise tools, and streamline operations, not to hand over control. At every stage, the best outcomes still come from people. From conversations. From experience. From instinct.