AI in Temporary Staffing Recruitment: An Opportunity for Advantage or a Source of New Risks?
AI
Artificial intelligence is revolutionizing temporary staffing recruitment, accelerating processes and cutting costs by up to several dozen percent. At the same time, concerns are growing over algorithmic bias, privacy breaches, and compliance with new EU regulations. Discover how to use AI to gain an advantage not trouble.
Table of contents
Speed and Efficiency – Tangible Savings
Artificial intelligence is radically accelerating recruitment processes. By leveraging AI, Unilever processed over 250,000 applications, reducing recruitment time from four months to just four weeks. The result? Tens of thousands of recruiter work hours saved. Other data shows the company also cut annual costs by £1 million and saved 50,000 hours of interview time, while increasing workforce diversity by 16%.
On a broader scale, European companies report cost reductions of up to 73% thanks to automation in candidate evaluation—savings far exceeding those of traditional hiring methods.
Automation and Candidate Convenience — Chatbots and Video Interviews
AI opens up entirely new possibilities:
- Instant CV screening and candidate data analysis in seconds.
- Chatbots that quickly check availability and answer questions.
- AI-powered video interviews that analyze speech, behavior, and facial expressions.
This frees HR teams from administrative tasks, allowing them to focus on the strategic elements of recruitment.
Risks: Algorithmic Bias and Discrimination
AI has its dark sides. Models trained on historical data may unintentionally favor certain candidate profiles, reinforcing existing inequalities.
Recent studies show that ranking systems and automated interviews can suffer from opacity and unfairness, especially when training data lacks diversity. Moreover, legal analyses indicate that even well-intentioned solutions can breach EU anti-discrimination laws, as technical fairness methods may deviate from legal requirements.
Regulations: EU AI Act and GDPR — New Rules of the Game
Since March 13, 2024, the EU AI Act has formally established regulatory frameworks for AI, including recruitment. Such systems are classified as high-risk, requiring:
- detailed documentation of algorithm functions,
- human oversight,
- transparency for candidates.
Violations can result in fines of up to 7% of global revenue or €35 million.
In addition, the EU’s GDPR requires:
- informing candidates about AI use,
- conducting a Data Protection Impact Assessment (DPIA),
- allowing candidates to request human evaluation.
Candidate Experience Sensitivity — When Technology Can’t Replace Empathy
While automation speeds up communication, many candidates feel a lack of personal touch. In surveys, 67% said AI-dominated processes felt less human, and 73% were less likely to apply to companies that rely solely on algorithms.
There’s also a transcription issue — in Australia, AI video interview systems had error rates of up to 22% for non-native speakers, leading to potential miscommunications.
Recommended Pillars for Responsible AI Implementation
Based on Flowork’s experience and expert best practices, four key pillars stand out:
1. Select vetted AI solutions – ensure compliance with GDPR and the EU AI Act, and verify explainability and certifications.
2. Human in the decision loop – AI decisions must be overseen and adjustable by recruiters.
3. Transparency with candidates – clearly explain AI’s role in the process and offer human review.
4. Ongoing monitoring and audits – regularly detect and minimize bias, document processes, and address incidents.
Conclusion: An Advantage Only with Responsible Use
AI in temporary staffing recruitment is a powerful tool it can speed processes, cut costs, and boost candidate diversity, delivering a real competitive advantage.
However, it also carries significant risks: from bias and discrimination to privacy breaches, poor candidate experience, and potential legal penalties.
The key lies in responsible and transparent AI adoption, with humans safeguarding fairness and ethics. Used correctly, technology can enhance competitive strength but only if we remember the values at the heart of recruitment.
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Natalia Roszkowiak
Marketing Project Manager
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