Companies using artificial intelligence in hiring are saving significantly more time than expected, with nearly a quarter of AI adopters saving more than five hours per week compared to just 13 per cent of non-users who anticipated such results, according to new research.
The iCIMS Insights August Workforce Report, released Tuesday, surveyed 1,013 employers and 1,000 U.S. adults to examine the real-world impact of AI in talent acquisition versus expectations.
“There’s tremendous opportunity for talent teams ready to put AI to the test,” said Ben Eubanks, chief research officer at Lighthouse Research & Advisory, which conducted the employer survey. “Most importantly, that impact goes beyond automating tasks into creating new value for candidates, hiring teams and organizations.”
Efficiency gains exceed expectations
While 64 per cent of AI adopters estimate saving over two hours per recruiter weekly, non-users remain pessimistic about the technology’s value, according to the research commissioned by iCIMS, a talent acquisition technology provider.
The greatest difference between adopters and non-adopters occurs at five hours per week of time savings, indicating that familiarity with AI positively affects estimated value and efficiency, the report found.
Companies are embracing AI for high-volume tasks such as screening, used by 55 per cent of adopters, and matching candidates at 40 per cent. However, only 7 per cent prefer AI for final hiring offers, according to the study.
Time reinvested in human activities
Talent teams are using time saved through AI to spend more time engaging with candidates, reported by 54 per cent of respondents, and analyzing recruiting metrics and business impact at 41 per cent, the research found.
Meanwhile, hiring continues to decline despite increased job activity. New data from iCIMS shows hiring is down 10 per cent year-over-year, even as job openings rose 5 per cent and applications increased 7 per cent since July 2024.
Generational divide on AI acceptance
The candidate survey revealed significant differences in AI acceptance across age groups, according to iCIMS.
A combined 62 per cent of millennials and 59 per cent of Gen Z believe AI speeds up hiring, compared to 47 per cent of Gen X and 41 per cent of baby boomers, the study found.
Younger candidates are more likely to believe AI makes hiring decisions fairer, with 44 per cent expressing this view compared to 21 per cent of Gen X and 18 per cent of baby boomers, according to the research.
Transparency remains crucial
Despite generational differences, 82 per cent of candidates agree they want to know how AI evaluates their applications, the survey found.
“Any successful recruiting strategy requires transparency in how organizations are using AI,” said Trent Cotton, head of talent acquisition insights at iCIMS. “Employers must make it a priority to educate and communicate with candidates on where AI is involved and where there will be a human in the loop.”
The research also revealed that 56 per cent of Gen X respondents reported low familiarity with hiring AI, highlighting the need for education across the workforce.
Earlier this month, iCIMS received the ‘AI-based Human Resources Solution of the Year’ award at the 2025 AI Breakthrough Awards. The company said its customers, including The Wendy’s Company, hire three times faster when using its AI solutions compared to those not using the technology.
