May 7, 2025 - Many staffing firms already have the right people and processes in place, now it's time to leverage the right technology. In-house talent teams are already adopting AI for hiring and it is raising the bar for what clients expect from external partners. According to Gartner, 38% of HR leaders are conducting pilots or implementing AI technologies. Forty-eight percent are actively evaluating solutions.

Those still on the fence about AI risk falling behind in an already tough staffing market. However, it is hard to tell which AI tools are worth the investment. Many recruiting products have rebranded themselves as “AI tools,” though their core functionality has not changed. Even tools with real potential can introduce bias or create data safety issues.

This article offers a brief review of some of the most impactful AI recruiting use cases we see for staffing firms right now.

6 AI Recruiting Use Cases for Staffing Firms

Eliminating recruiting busy work

Outsourcing busy work to AI gives recruiters more time to spend upselling clients, marketing roles, and placing excellent candidates. New data from the recruiting software Bullhorn suggests that AI and automation can save recruiters 17 hours per week.

The general-purpose AI tools Jasper, ChatGPT, and Claude can generate clear, engaging job descriptions in seconds. Other AI tools can coordinate interviews and keep candidates informed. Some, like Harver and VidCruiter, automatically gather references. This helps clients launch offers quicker and close candidates before they accept roles elsewhere.

Streamlining research and outreach

Understanding the nuances of each role, crafting personalized messaging, and tracking candidate responses requires significant effort. AI-powered tools make this process faster and more precise.

For recruiters working outside their core industries, AI can provide a deeper understanding of what specialists value in a role and what certifications or skills set candidates apart. They could also ask for a list of niche job posting sites to attract candidates with the right skills.

AI can help recruiters draft personalized emails, too. Feed a large language model (LLM) a candidate’s LinkedIn profile and other publicly available data on GitHub or Stack Overflow with a prompt to generate a detailed sample message. Software like Employment Hero can complement these activities, analyzing employee turnover and org structures to surface candidates who are more likely to respond to recruiter outreach.

Rediscovering top candidates

AI-powered recruiting tools help staffing firms make better use of the talent already in their databases. While recruiters focus on sourcing and placements, AI can update candidate profiles with new information from LinkedIn, credentialing platforms, and other professional associations, ensuring records stay accurate.

Beyond simple keyword searches, machine learning models can identify patterns from past successful placements to determine what makes a strong fit for each client. AI tools can also factor in a candidate’s engagement history and market trends to gauge their interest, serving up the most qualified candidates from a firm’s existing pipeline.

By reducing the need for constant outbound sourcing, firms can reallocate their budget to attract candidates for harder-to-fill roles and solidify their value to clients.

Screening resumes at scale

AI has changed not only how companies hire but how candidates apply. Nearly two-thirds of job seekers use AI to expedite the application process, leading to a surge in submissions for every open role.

Companies are turning to AI to manage this influx. Last year, beauty giant L’Oreal deployed a recruiting chatbot to ask basic screening questions and move high scorers to the next round. Recruiters saved 200 hours and hired “the most diverse group to date.”

Chipotle had success with its AI-powered virtual assistant, Ava Cado, named in a not-so-subtle pun on a beloved ingredient. It uses conversational AI to chat with candidates, screen for specific details, and schedule interviews with hiring managers. Since implementing the assistant, Chipotle has slashed its time to hire from 12 days to four.

Other companies use AI technology like HireVue, VidRecruiter, CodeSignal, and Brazen to pre-screen candidates through written and video questions. With in-house hiring teams already leveraging AI for resume screening and early-stage evaluations, staffing firms should all consider similar tools.

Showing candidates in the best possible light

Putting forth polished and prepared candidates builds trust with clients. But sometimes, the best candidates do not look immediately appealing on paper.

AI can improve a client’s first impression of a candidate. The AI tool Grammarly, for instance, can generate custom cover letters on the fly or enhance the clarity and structure of the letters candidates might already have drafted. Rezi AI can optimize candidates’ resumes to ensure they pass applicant tracking system (ATS) filters and point out items to include based on the role.

AI can also help recruiters prepare candidates for interviews. Using ChatGPT and Claude, they can come up with tailored practice questions and help candidates refine their responses. Or, they could let AI handle this step entirely. As just one example, Final Round AI offers real-time interview coaching.

Diversifying their services

Staffing firms that offer data-driven advisory services strengthen client relationships and position themselves as long-term hiring partners.

We see some achieve this by using AI tools to track labor market trends and competitors to advise clients on future hiring needs. Or to proactively address changing expectations around salary and benefits. Staffing firms can also use AI to develop personalized internal mobility questionnaires, highlighting skills gaps, opportunities to promote from within, and succession planning.

Beyond hiring strategy, AI can automate essential HR functions that staffing firms can offer as value-added services. Running background checks, retrieving W-2s — even nominating clients for “best places to work” awards — can reduce administrative burden on clients and make their relationships with staffing firms stickier.

A Smart Approach to Adopting AI Recruiting

Despite the productivity gains and competitive edge AI recruiting tools can offer, staffing firms must implement them with care.

Some resume screening tools have faced scrutiny for algorithmic bias. Privacy is also a concern, as many AI tools collect and analyze personal data for background checks and credential verification.

To minimize friction, AI recruiting tools also must integrate directly with applicant tracking systems (ATS) and other HR platforms. And recruiters need to be trained how to use them properly. Many recruiters fear AI, believing that it will one day replace them, however in reality through proper training this tool will only make them more productive and efficient. Otherwise, firms will struggle to see their full value. For help with this, consider a technology advisor like Citrin Cooperman.

Citrin Cooperman’s Staffing Industry Practice is well-equipped to help you strategize an AI pilot, understand how other staffing firms are adapting to the current hiring market, and find financial opportunities amidst upheaval. For more information, reach out to Michael Napolitano.