Friday, October 24, 2025

Businesses eye £500bn productivity lift as AI reshapes recruitment

UK employers could unlock more than £500bn in productivity by using artificial intelligence to overhaul recruitment, a new LinkedIn analysis suggests.

The findings point to growing corporate interest in automating the most time-consuming parts of hiring, such as screening CVs, drafting job adverts, and sourcing candidates. AI platforms are already being deployed to speed up these stages, allowing recruitment teams to focus on strategic workforce planning and candidate engagement.

Adoption, however, remains uneven. Most UK recruiters report limited AI training despite expectations from leadership teams to build future-ready workforces. Regional differences also persist, with most AI-related vacancies and skill development concentrated in London. Outside the capital, progress has been slower, reflecting broader disparities in digital investment and infrastructure.

Separate studies highlight both the promise and the pitfalls of automation. Research by the Alan Turing Institute and the Institute for Ethical AI has shown that hiring algorithms can mirror existing workplace biases, while HR surveys reveal widespread concern that automated processes weaken the human connection during hiring.

Data from other consultancies reinforce the mixed picture. EY’s latest analysis finds that demand for AI expertise is rising across financial services boards, though few firms have the governance to manage the ethical and operational risks it entails. Meanwhile, surveys indicate that while automation has accelerated candidate screening, high early-stage turnover remains common, suggesting that efficiency alone does not guarantee better recruitment outcomes.

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