Australian companies will invest over $1 million in AI between now and 2022

A Deep Learning Lesson for Australian Recruitment Agencies


What You’ll Learn in this Blog:

  • Where Australia stands in the global AI landscape
  • How AI is being utilised and benefiting recruiters
  • What the future holds for recruiters and AI


The Australian economy could be boosted by digital innovation and artificial intelligence from $140 billion to $250 billion over the next eight years. Australian business leaders are also expecting to invest over $1 million in AI between now and 2022, according to Daisee, one of the world’s leading AI software companies. This serves as good news because Australia is currently behind compared to its global counterparts when it comes to adopting AI into the workplace.

Hopefully, AI becomes more present in the Australian workspace, especially in recruitment agencies. The benefits of AI specifically to recruiters has been proven through many studies, some of which we explore below.  They include boosting employer branding, reducing cost and time spent on talent acquisition and increased data research visibility.  


Where Australia stands in the global AI landscape

The Daisee 2017 Australian AI Report reveals some interesting statistics that show Australia is behind in terms of deploying AI in the workplace, compared to its global counterparts. Almost 70% of Australian companies said they were yet to adopt AI solutions, compared with a global average of 54%. And worldwide, 23% of companies are known to be piloting AI, while the report found only 17% of Australian businesses are at this stage.

CEO of Daisee, Richard Kimber believes it's crucial for Australian businesses to keep up, “It’s a widely held view that companies taking no action on AI will see the gap between them and those who embrace it will widen exponentially over the next five years”.  

So how are Australian companies, specifically recruitment agencies, currently utilising and benefiting from artificial intelligence?


Talent Acquisition

Seek.com recently found that around 85% of all applications are not relevant to the job in question. This is where AI steps in. With the help of filtering programs such as LinkedIn Recruiter and DaXtra, recruiters can now match candidates to the right jobs in seconds.

According to Entelo's 2018 Recruiting Trends Report, recruiters spend on average 13 hours of their working week sourcing candidates for one role and nearly 1 in 3 respondents spend over 20 hours. Unsurprisingly, 70% of the respondents agreed that artificial intelligence would increase productivity. But it’s not just the talent acquisition process that’s sped up with the help of AI.


Australian companies will invest


Data Research

Data informing talent decisions is not a new concept. What is new is the volume of data available to recruiters and the speed with which it can be analysed. It can also predict hiring outcomes, not just track them. LinkedIn’s 2018 Global Recruiting Trends report revealed 69% of talent professionals believe using deeper data can elevate their careers.

A further breakdown of statistics from the study shows:

  • 56% of recruiters believe it helps increase retention.
  • 50% of recruiters believe it helps evaluate skills gaps.
  • 50% of recruiters believe it helps build better offers
  • As well as empowering recruiters with a better data analysis tools, AI can also take the heat of HR professionals, find out more below.


The Power of Chatbots

Chatbots, otherwise known as a cognitive computing system, are getting popular now especially among HR professionals and recruiters. By having an automated reply system on company career pages or on recruitment websites, bots can quickly assist candidates who want to ask questions about jobs on offer.

Chatbots can also complement or even replace your traditional application form and interact with candidates efficiently. LinkedIn also points out that while up to 74% of candidates drop out after starting the application process, chatbots can actively remind them to finish answering questions and collect incomplete information, unlike a static application form. 

The IBM Institute for Business Value found that 65% of global CEOs are expecting cognitive computing to drive significant value in HR over the next 3 years. However, it also warns that although business leaders understand that cognitive computing is a critical differentiator in the ongoing war for talent, companies need to be strategic.

It states that many emerging technologies fail to reach their full potential because the workforce is either unable or unwilling to successfully embrace them. Given the potential transformative quality of cognitive computing, it’s important to assess the willingness of employees to interact with cognitive solutions in their daily work activities.


What Does the Future Hold for Recruiters?

The LinkedIn Trends Report mentioned above revealed that 14% of talent acquisition professionals fear AI will take away their jobs completely. But as the Undercover Recruiter states, emotional intelligence and creativity will be essential for any recruiter in our algorithm-shaped future. Meeting new people will remain one of the most socially rewarding things we can do — and this is exactly why recruiters will still have a role to play. Who knows what collaborations a coffee date could forge, or what ideas can be generated over a bottle of red?

Hopefully, we will see the current number of Australian businesses adopting AI practices (14%) rise over the next few years. “It’s clear Australian companies have some catching up to do when it comes to actually understanding and deploying the many business benefits of implementing AI technologies effectively,” agrees Daisee’s Richard Kimber. “But it’s also clear that Australia is at a tipping point with awareness, investment and real action on AI expected to rise sharply over the next five years.” Let’s hope he is right!

Do you need talent acquisition experts to take the hassle out of your recruiting process? Get in touch with our employer service consultants today, call us in Australian on 1300 336 686 or in the EU on +31 20 523 1053 or email marketing@denovo.com.au.