Business · Companies · 12 hrs ago
AI speeds up hiring and puts recruitment agency fees under pressure
AI is speeding up parts of recruitment, including screening candidates and handling interactions.
The change involves recruitment agencies and employers, with examples from the U.K. and France.
Many agencies charge employers a percentage of a successful candidate’s first-year salary, so clients may question fees if AI does more of the work.
A survey of nearly 300 recruitment professionals in the U.K. and Ireland found 37% said AI made screening 26% to 50% faster.
Some recruiters say human judgment and relationships still matter: Adecco says its AI agents support the process, but people make hiring decisions and candidates can ask to speak with a person.
Recruiters disagree about the likely impact on fees, with some expecting them to hold or rise if agencies offer greater value.
Some industry leaders expect major workforce cuts, and one predicts only a third of today’s recruitment agencies may survive the next five years.
Artificial intelligence is speeding up parts of recruitment, putting pressure on agencies to explain the fees they charge employers.
A 2026 survey found that 37% of recruitment professionals surveyed in the U.K. and Ireland said AI made candidate screening 26% to 50% faster.
Some agency leaders say technology lets recruiters focus on relationships and expertise, helping justify current or higher fees.
Others warn that automation could shrink recruitment firms and eliminate jobs.
Adecco said its U.K. tools saved around 15% of the time spent on recruitment processes, while human recruiters still make hiring decisions.
- Who
- Recruitment agencies and their clients, including employers. Agency leaders David Berwick, Matt Collingwood, Niki Turner-Harding and James Wright discuss the effects.
- What
- AI is speeding up recruitment work and putting pressure on agency fees and jobs.
- When
- The article was published on November 8, 2026. It describes survey findings and developments from 2025 and 2026.
- Where
- The U.K. and Ireland, with examples from England and the U.K. and France.
- Why
- AI can automate tasks such as candidate screening and handling recruitment processes, leading clients to question agency fees and firms to reconsider how work is done.
Recruitment agencies defending or adapting their fees
Clients and automation putting fees and agency jobs under pressure
Value of agency services
Recruitment agencies defending or adapting their fees
Matt Collingwood says fees can hold firm or increase if agencies deliver more value through technology, relationships and expertise.
Clients and automation putting fees and agency jobs under pressure
David Berwick says fees are harder to justify when agencies simply find and forward CVs because businesses can automate much of that work.
Employment effects
Recruitment agencies defending or adapting their fees
Collingwood sees automation as a way for recruiters to spend more time building relationships.
Clients and automation putting fees and agency jobs under pressure
James Wright predicts major job losses at large executive search firms, while Collingwood says only a third of current agencies may survive the next five years.
LinkedIn's UK Future of Recruiting report found that talent acquisition professionals experimenting with or integrating generative AI saved an average of 18% of their working week.
Adecco said it had six AI recruitment agents operating in the U.K. and France, with U.K. tools saving around 15% of recruitment-process time.
A survey of nearly 300 recruitment professionals in the U.K. and Ireland found that 37% said AI made candidate screening 26% to 50% faster.
CNBC published its report on AI speeding up recruitment and putting agency fees under pressure.
- Survey size
- Nearly 300 recruitment professionals in the U.K. and Ireland
- Screening speed
- 37% said AI made candidate screening 26% to 50% faster
- Adecco AI agents
- Six operating in the U.K. and France as of February 2026
- Adecco time savings
- Around 15% of recruitment-process time in the U.K.
- VIQU turnover
- Grew by 47% over the past 18 months, according to Matt Collingwood
What people are saying
If a recruitment agency is simply finding CVs and forwarding them to employers, AI is making that service increasingly difficult to justify
People don't go into recruitment because they love admin. They go into it because they like working with people, solving problems and building relationships
The businesses best placed to succeed will be those that combine technology with strong relationships and genuine expertise
At least 60, 70% of them are going to be out of a job, I think