AI driving hiring growth: report

Just days after OpenAI CEO Sam Altman said that artificial intelligence (AI) had not delivered the sweeping job losses he once anticipated, a report claims the technology is doing the opposite — creating more jobs.

Now, 48% of the 1,500 hiring managers surveyed in Canada predict AI will help increase headcount in the next two years, not decrease.

At the same time, early workforce reductions tied to AI adoption are being reassessed. Robert Half reports that 34% of managers who eliminated positions after implementing AI have had to add those roles back, suggesting some employers underestimated the need for human expertise.

This is primarily about "job redesign,' Tara Parry, Director of Permanent Placement Services at Robert Half, told HRD.

"AI is handling repetitive work, which is allowing employees to focus on higher-value activities like problem-solving, collaboration, and decision-making. In many cases, organizations are realizing they still need people, just with evolving skill sets.”

Last week, Altman told Reuters: “I don't think we're going to have the kind of jobs apocalypse that some of the companies in our space advocate or talk about.”

“AI is driving demand for both specialized technical roles and expanded business-facing roles." according to Parry.

"On one side, we’re seeing growth in areas like data analysis, AI implementation, and systems optimization. On the other, there’s increasing demand for professionals who can bridge technology and business needs, including interpreting AI outputs, validating results, and applying insights in a practical way. The common thread is that human skills are becoming more important, not less, as a key differentiator to AI-enabled work.”

Recruitment pressures intensify with GenAI

However, candidate use of generative AI (GenAI) is creating new challenges for employers. The use of AI “to optimize resumes and apply to jobs in large volume is leading employers to spend more time evaluating candidates and validating credentials,” the staffing firm noted.

As a result, hiring processes are becoming more rigorous. Nearly 40% of HR teams are adding extra in-person interviews, and almost half are introducing assessments to verify candidates’ skills and experience.

Robert Half also found that recruiting workloads have increased and time-to-hire has lengthened, adding operational strain for HR departments tasked with maintaining hiring quality.

Parry said that AI can "absolutely" help streamline parts of the hiring process, such as matching candidates and skills to jobs, interview scheduling, and the like. However, it’s also introducing "new complexities that HR teams are actively working through".

The Robert Half executive cited this data: 61% of Canadian HR leaders say reviewing AI-generated applications has actually slowed down their hiring process, and 89% report heavier workloads as application volumes increase with AI making it easier than ever to mass-apply to jobs.

"Many applications also now look the same thanks to AI-generated materials, and in some cases, are harder to verify for real skills and experience, when these tools work to match people perfectly with the job descriptions they’ve input. As a result, employers are adding steps like deeper interviews and skills assessments to validate candidates," said Parry.

"So while AI is a powerful efficiency tool, the most effective approach is a balance, where HR professionals use AI for speed and scale, while relying on human judgment to assess nuance, authenticity, and fit. That human element remains critical, especially when evaluating soft skills and long-term potential.”

Career progression amid AI adoption

Alongside these hiring trends, AI is reshaping how careers develop within organisations. Robert Half reports that 25% of professionals said AI created more advancement opportunities, while another 25% said it changed the skills needed for career progression.

The findings, based on a survey of 1,482 Canadian professionals, indicate that AI is influencing career trajectories without fundamentally disrupting them. Robert Half also found that 47% of respondents said AI has had no significant impact on their career path, suggesting most workers are experiencing gradual change.

At the same time, new opportunities are emerging. Nearly 1 in 5 (17%) of respondents said AI has created new positions of interest, reflecting the growing demand for AI-related roles.

"AI has real potential to support career development, particularly when it’s used to help employees identify skill gaps, map career paths, and focus on higher-value work," Parry said. "We are also consistently seeing that businesses are willing to pay salary premiums for professionals with AI skills relevant to their professional fields."

Half of young Canadians say AI is impacting their long-term career plans, according to a previous report from Borderless AI.

Here are a few essential numbers about AI’s impact on job creation in Canada, according to different stakeholders: