Hiring 2.0: How AI in Recruitment Powers a Smarter Talent Pipeline

By: Ed Pederson, Head of Innovation, Kelly

Hiring great people with the right skills and qualifications has always been the cornerstone of a company's success. But how businesses build their teams looks different today than it did even in recent years. When ChatGPT came on the scene, we heard a lot of chatter about AI and recruitment, with few companies actually experimenting with the technology. Today, while nearly every HR technology vendor claims some AI capability, organizations are beginning to move beyond the hype to practical implementation. 

Companies are exploring AI solutions across different aspects of hiring—from sourcing and candidate engagement to onboarding—with varying degrees of impact and maturity. Some are starting to connect these tools into more cohesive systems, pointing toward what we might call "Hiring 2.0"—a smarter, more connected talent pipeline that could transform how organizations find and secure talent. 

Recent data underscores why organizations are exploring these innovations. According to Kelly's 2024 Global Re:work Report, 54% of senior executives say poor workforce planning is impeding business growth, while 47% report missing business opportunities due to a lack of talent. Let’s take a closer look at how AI is helping to address these challenges.

The AI-powered recruitment pipeline

From compiling candidates one by one in a spreadsheet to unproductive interviews, traditional hiring methods have long relied on repetitive, inefficient, and time-consuming processes. Now we're seeing specialized AI tools that not only handle specific tasks—like finding candidates or screening—but also connect these steps smoothly while creating powerful databases that continue to get more valuable over time.

Fast-tracking job descriptions

AI helps from the very first conversation with hiring managers. Kelly’s recruiters, for example, can record their intake calls about what a role requires, paste these notes into our AI tool GRACE, and get back a properly formatted job description that's ready to post. This replaces the old process where recruiters had to write up formal descriptions, check formatting, and ensure everything matched company standards. The same tool helps create concise candidate summaries for busy hiring managers who don't have time to read lengthy resumes.

Sourcing candidates faster

Companies are using AI in several ways to find candidates. On one side, you've got AI tools that search across 50 to 70 different websites and resources, going well beyond the usual job boards like LinkedIn and Indeed. These tools build a more accurate profile of each candidate by pulling information from many sources and presenting a complete picture. On the other hand, AI can plug into existing subscriptions to job sites, apply search criteria, filter candidates, and help interpret the results—cutting down the time recruiters spend searching through profiles.

Casting a wider net

AI also helps us reach candidates who might not show up in any online searches. Take the oil and gas industry, for example. Most people we recruit for oil rigs and remote sites don't have LinkedIn profiles or even computer access to create resumes. But they all have cell phones. With AI voice technology, we can reach hundreds or thousands of these candidates right away, run through basic screening questions, and gather all the needed information. 

Starting the conversation

Over the last year, voice AI has gotten remarkably good at handling initial candidate screening. It sounds just like a human, down to the pauses and breaths in conversation. When a candidate's profile looks promising, AI can check those initial screens: Can you lift 50 pounds? Do you have this certification? The AI adjusts based on their answers and can dig deeper if needed. We also see companies trying AI video interviews, though the results are mixed. They work better for roles where you're hiring many people for similar positions.

Creating a bank of opportunity

During conversations and through analysis of candidates' full professional profiles, AI can now capture and catalog a comprehensive set of skills—both those directly relevant to the current position and additional capabilities that might be valuable for future opportunities. When John Doe applies for a forklift job, for example, the system not only processes his immediate qualifications but also identifies and records his welding and light assembly experience from his complete work history. 

This means we can find him again later for different roles that match his full range of skills, creating a richer talent pool that reflects candidates' entire skill sets rather than just those highlighted for a specific position.

Onboarding with ease

Once someone gets hired, there's a lot of paperwork and setup to deal with. Automations in conjunction with these other AI-driven processes can send out offer letters, order equipment, set up first-day orientations, and schedule check-ins automatically. This cuts out a lot of the busywork that usually slows things down.

Benefits to an AI-powered pipeline

AI is changing how fast you can connect people with jobs, while giving employers access to a larger pool of quality candidates. 

Here’s where we’re seeing an AI-powered recruiting pipeline add immense value:

Fill urgent positions faster

The typical hiring process used to take 30-45 days from when a company identifies a need to when they can bring someone on board. Kelly's AI-powered platform, Kelly Now, shows how much faster hiring can be. Pre-qualified candidates in the system can see open jobs in real time and express interest immediately. The platform has cut the hiring timeline from 45 days to just hours in many cases, with some candidates starting second-shift positions the very same day they apply. When candidates can easily find and act on job opportunities that match their skills, both employers and job seekers win.

Improve the quality of your pipeline

AI builds richer candidate profiles by capturing new information through each interaction and system touchpoint. Instead of static files that sit unchanged after initial data entry, AI continuously updates profiles by gathering fresh details about skills and experience. When a candidate mentions new certifications during a conversation, applies to different roles, or shows up in updated databases, the system adds this information automatically. This removes the old problem of profiles growing outdated between recruiter check-ins, since AI keeps learning about candidates even when recruiters aren't directly involved.

Create more time for human interaction

AI handles the repetitive work of copying data between systems and clicking through endless screens. This lets recruiters focus on work that needs human insight—understanding exactly what hiring managers are looking for and building real connections with promising candidates. Instead of trying to keep track of hundreds of applicants at once, recruiters can give proper attention to the people who are the best fit for each role. In a way that might seem surprising, AI actually creates space for more meaningful human interaction in the hiring process.

Start with baby steps

Companies are moving past the initial AI hype sparked by ChatGPT. While every board of directors was asking about AI plans, organizations are now wrestling with practical questions about security, risk, and getting people to adopt new ways of working. People often try to make new AI tools work just like their old systems, which misses the point. Real change takes time and careful planning.

The key is finding small, practical ways to use AI that make day-to-day work easier. Here's a recent example: A colleague of mine needed to research leaders at a company we'd acquired who had AI experience. Instead of spending hours manually searching, he created an AI agent to scan the company website, find people with AI roles, check their LinkedIn profiles for relevant skills, and send connection requests. This kind of focused task—something that normally eats up valuable time—shows how AI can help right now, even as organizations figure out their longer-term AI strategy.

Finding the right balance

The goal isn't to replace humans with AI. It's to give people better tools to do their jobs. AI can handle the time-consuming parts of recruiting, letting people focus on the parts that need human judgment and interaction.

Companies that figure out how to blend AI tools with human expertise will hire better people, faster. But they'll do it by making the process better for everyone involved—the companies doing the hiring, the recruiters doing the work, and the candidates looking for their next opportunity.