New 2026 forecast predicts a more critical role for AI amid jobseekers' hiring frustrations
Artificial intelligence tools will become a default assistant in the hiring process in New Zealand next year, according to a forecast from Employment Hero, as frustrating hiring processes hold back Kiwis from seeking new jobs.
Employment Hero is predicting that AI will be used by employers next year to reduce admin bottlenecks, improve communication, and lift overall transparency in the job application process.
"This shift mirrors what we're seeing globally, with uniquely Kiwi pain points at the centre: speed, clarity and respect for applicants' time," said Neil Webster, general manager at Employment Hero.
Hiring pain points
He made the remarks as Employment Hero's end-of-year Employment Uncovered worker survey revealed that Kiwis are ready for a new job in 2026, but are held back by frustrating job application processes.
According to the report, 62% of jobseekers aren't applying for roles because the hiring process "feels too draining," with the figure rising to 70% among young workers.
Some of the top frustrations cited by jobseekers are the lack of salary listed (44%) and vague or jargon-heavy (39%) job advertisements. Other pain points include:
- Unrealistic skills expectations (33%)
- Algorithm-suggested jobs requiring skills they don't have (30%)
- Ghost jobs (19%)
More than half of jobseekers (56%) also noted that the worst part of job hunting is simply never hearing back from employers, according to the report. Others said:
- Paperwork (26%)
- Long delays (48%)
- Impersonal automated rejections (40%)
Embracing AI at work
Employers who respond to employees' needs will stand out in 2026, according to Employment Hero.
Part of this response is embracing AI in the workplace.
"AI will remove repetitive admin, streamline hiring, and free teams to focus on high-value work - but only if capability grows alongside technology. Workers shouldn't fear AI; they fear not being trained to use it," Webster said.
Employment Hero's findings revealed that only 47% of employers encourage AI use, while 38% are indifferent to it, indicating a divided attitude towards the technology amid concerns that it could replace employees.
"AI is not replacing people. It's removing the admin burden that stops businesses from growing. When you combine smart tools with human capability, everything improves - speed, fairness, and access to talent," Webster said.
