Low adoption of AI in recruitment by Singapore companies

Low AI adoption comes despite strong demand for AI fluency from jobseekers

Low adoption of AI in recruitment by Singapore companies

Adoption of artificial intelligence tools in Singaporean recruitment processes remains low, despite growing demand for AI skills from jobseekers.

This is according to the latest data from Jobstreet by SEEK, which polled 887 hirers and HR professionals in Singapore between September and October 2024.

It found that only 15% of employers have adopted AI tools, with their use cases being:

  • Job ad writing (67%)
  • Candidate screening (52%)
  • Candidate assessment (45%)
  • Interview process (30%)
  • Background checks (27%)
  • Onboarding process (27%)

More than seven in 10 (71%) of those who adopted AI said they did it because it enhances their hiring efficiency and speed.

More than half of those who adopted it also said AI improves job matching (63%), as well as automates time-consuming tasks (53%).

Low AI adoption despite demand

On the other hand, the top reason given by the 85% for not implementing AI in hiring is because they don't think it's necessary in the recruitment process (51%).

At least four in 10 respondents also said they have no knowledge or access to AI applications in recruitment (40%) and that these tools lack a human touch and personalisation (44%).

The low AI adoption by HR teams for hiring comes despite the strong demand for AI skills from jobseekers.

According to the poll, AI fluency has become a key qualification for organisations, with 54% of employers considering it during hiring and candidate assessment.

In fact, 19% of the respondents said AI knowledge is either given primary consideration or given equal importance alongside other qualifications of jobseekers.

Non-monetary perks in the conversation

Meanwhile, the report also found that non-monetary perks have seen greater attention in the past year as employers aim to support their employees' family life.

The top offered benefits in the past year include additional paternity and maternity leave, as well as family care leave.

Flexible leave was also introduced in 2024, as well as replacement leave.

"This trend may indicate businesses' intent to better support their employees' family life," the report read.

When it comes to salary, 79% of organisations gave an annual increase in 2024, with 62% of employers offering an increment between one and five per cent.

Another 76% of businesses also offered bonuses in the past year, with 51% rewarding staff with a performance bonus.

When it comes to promotion, 54% of Singapore businesses promoted their staff, with 41% of them offering a six to 10% increment to those who got promoted.

Vic Sithasanan, Managing Director, Jobstreet by SEEK in Singapore, said their findings show that Singapore's job market is "entering a new chapter."

"Where salary once reigned supreme, the data shows us that employers and jobseekers are now focused on AI readiness, work-life flexibility, and meaningful career development," Sithasanan said in a statement. "These holistic benefits have begun to overtake traditional hiring priorities and are no longer 'nice-to-haves'—they are becoming decisive factors for hiring and retention."