Xeople Blog

AI, Upskilling & the Future of Recruitment:  Why Forward-Thinking Agencies Will Win

Written by Mahek Patalia | Sep 9, 2025 3:53:13 AM

The RecTech Sector Buzz: Will AI Take Our Jobs?

AI is making waves across industries, and recruitment is no exception. With automation now an established player in  the hiring process, many agencies and candidates are asking: Will AI replace us? 

It’s a fair question, but not a new one. History has shown us that technology rarely replaces humans outright. Instead, it reshapes the way we work. Just as computers gave rise to tech careers and the internet created entire industries, AI is poised to change recruitment, not eliminate it.

Yes, some entry-level roles are being redefined or phased out; however, that simply means new opportunities are emerging higher up the ladder.  It was highlighted in a Fortune article quoting OpenAI CEO Sam Altman that Gen Z’s success will be shaped by how well they integrate these tools into their careers. “If I were 22 right now and graduating college, I would feel like the luckiest kid in all of history,”  he said.

AI in Recruitment: Dispelling Myths and Facing Fears

There are genuine concerns about AI's impact on recruitment:

  • Automated systems handling candidate screening

  • Chatbots replacing human conversations

  • Data-driven algorithms sidelining human judgment

But the reality is more nuanced. AI excels at repetitive, volume-heavy tasks. It can shortlist resumes or schedule interviews at lightning speed. What it cannot do is replicate human intuition, empathy, or relationship-building — all of which are core to recruitment.

 With AI handling admin work, recruiters are free to become strategic advisors, focusing on relationship management, cultural fit, and client partnerships. Likewise, job seekers can now leverage AI to craft smarter applications, identify gaps, and present themselves more effectively.

Now, with the landscape evolving rapidly, we have a unique opportunity to close those gaps not just by automating tasks, but by rethinking how we attract, retain, and develop talent. It's time to move beyond outdated scripts and focus on what truly matters: creativity, critical thinking, and long-term workforce growth

Every time we fear technology will replace us, it ends up redefining us.

The Upskilling Imperative: Rising Demand for Skills

According to the Victorian Skills Plan, Victoria will need approximately 373,000 additional workers across 13 industry clusters over the next three years. Notably, the Professional, Financial and Information Services cluster expects to require 64,000 new roles, including:

  • Software and applications programmers

  • ICT security specialists

  • Web designers

Why it Matters to Recruiters: These are roles that require specialised, up-to-date skills. Recruitment agencies will play a crucial role in identifying, placing, and supporting these professionals. That means recruiters themselves must evolve: understanding new tech stacks, recognising non-traditional credentials, and working closely with education providers.

For example, a  recruiter once focused on placing office admins may now find themselves advising candidates with short-course certifications in cybersecurity or AI literacy. Agencies that embrace this shift will gain a competitive edge.

Casual vs. Permanent Recruitment: Tailored Needs, Shared Opportunities

While their models differ, both casual and permanent recruitment agencies share a need for smarter, tech-enabled tools and an upskilled workforce.

Casual Recruitment Agencies 

  • Prioritise speed and adaptability.

  • Need quick access to job-ready candidates.

  • Benefit from platforms that highlight micro-credentials and skills-based profiles.

Permanent Recruitment Agencies

  • Focus on long-term placement and cultural fit.

  • Must understand technical role nuances and emerging job categories.

  • Are evolving into workforce coaches, helping clients and candidates navigate AI-augmented workplaces.

Xeople: Your Future-Ready Recruitment Software Partner

Xeople empowers both casual and permanent recruitment agencies to thrive in this AI-driven landscape. We enable:

  • Shortlisting & Screening: Shortlisting identifies candidates who meet key role criteria, while screening uses interviews and assessments to ensure only the most qualified move forward.

  • Insights Integration: Data-backed tools aligned with government forecasts like the Victorian Skills Plan.

  • Human-Centric Automation: Reduce manual workloads while maintaining a personal, human-first experience.

Recruitment isn’t just about filling roles anymore. It’s about shaping the future of work. Agencies that integrate AI and champion upskilling will be the ones leading the way. 

Recruiters as Change Agents, Not Casualties

The narrative doesn’t have to be one of fear. AI is here, but so is a new generation of tools, opportunities, and skills. Recruitment agencies that lean into this change by embracing AI, promoting upskilling, and leveraging tech like Xeople,  will not only remain relevant but become indispensable.

It’s not about man versus machine. It’s about man with machine, reshaping the future of recruitment.

Let Xeople help your agency lead the next era of recruitment. Explore our products to find the best fit for your needs or get in touch to start the conversation.