Could AI Be the Key to Addressing Upcoming Staffing Shortages?


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Many industries are struggling due to the growing labor shortages. Fortunately, artificial intelligence can help address some of these issues. This is why the market for AI in the human resources profession was worth over $3.25 billion in 2023 and it is growing over 24.8% a year.

Labor Issues Create Demand for AI-Driven Staffing Solutions

Hospitals, warehouses, construction companies and many other businesses are looking for new ways to use AI to both make things easier for existing staff, as well as to make it easier to hire employees in businesses that are having trouble attracting enough workers. They obviously need to work with companies that help with staff augmentation company evaluation processes.

The construction industry is one of the industries that are having the most trouble finding workers. One industry research group estimates that this industry will need to find 439,000 new workers this year to meet demand for their services. The manufacturing sector and skilled trades professions like electricians are also struggling to find workers. The U.S. Bureau of Labor Statistics states that there is likely to be an 11% increase higher need for electricians by 2033. This is partially being driven by advances in AI and big data, since there are going to be a lot more data centers in the coming years.

Ways that AI is Starting to Change the Hiring and Recruiting Process

All of these issues can be helped by investing more in AI. The World Economic Forum reports that 88% of companies use AI as part of their recruitment process.

They are using AI tools to scan resumes, predict if candidates will be a good fit, and even conduct initial screening interviews. More than 65% of recruiters say they have used AI to fill positions, and an estimated 99% of Fortune 500 companies are using it in one way or another.

Of course, AI isn’t going to replace human workers. However, it is helping staffing professionals do their jobs more efficiently, especially by automating a lot of monotonous jobs. For example, healthcare professionals are using AI tools to take care of common administrative tasks like appointment scheduling, data entry, and patient monitoring. That support makes it easier for nurses and doctors to focus on their patients. This may make it easier for staffing agencies to find enough nurses, since current estimates suggest they will need one million new nurses by 2030. They may not need as many if they can automate a lot of tasks nurses would otherwise be doing, which lowers the risk of a future staffing shortage.

Beyond recruiting, AI is being used to shorten training time and open doors to entry-level positions in sectors desperate for workers. One AI platform helps prepare students for healthcare jobs in under four months. With more than 100,000 clinical support roles expected to go unfilled by 2028, this kind of accelerated training is already making a difference.

Even in fields like logistics and warehouse operations, companies are turning to AI-guided robots to take on tasks that are either physically demanding or hard to keep staffed. At Agility Robotics, humanoid robots are already being trialed in commercial settings, helping to fill labor gaps without completely overhauling operations.

That said, using AI requires more than just plugging in new software. Companies need people who can manage and maintain these tools, and many businesses are finding that the available talent doesn’t always meet the technical requirements. As demand for AI grows, so does the need for upskilling and training programs that can help workers stay competitive in a job market that is changing rapidly.

AI Also Raises Concerns About Hiring Processes

There are clearly a lot of benefits of using AI in the staffing process. However, while AI has helped employers, there is a lot of skepticism about it. One study found that 49% of workers fear that AI-powered recruiting tools have a lot more bias than human interviewers.

This raises a lot of concerns about transparency in hiring, especially when decisions are made by systems that aren’t always well understood by applicants or even hiring managers.

It has also led to some legal issues. For example, last summer the company known as Workday faced a lawsuit for some of the issues caused by relying on AI in its hiring processes.

The post Could AI Be the Key to Addressing Upcoming Staffing Shortages? appeared first on Datafloq.



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