As AI continues to dominate headlines and boardroom conversations, a disconnect is emerging between how employers and candidates perceive AI’s value in hiring and what adopters are actually experiencing. iCIMS, a leading provider of talent acquisition technology, today released the iCIMS Insights August Workforce Report, revealing that nearly a quarter (24%) of AI adopters save more than five hours per week, compared to just 13% of non-users who expect these results. The report’s findings include commissioned data from Lighthouse Research & Advisory, and a survey of 1,000 U.S. adults.
According to iCIMS’ proprietary platform of thousands of customers worldwide, new data shows that despite a modest uptick in job openings (+5%) and applications (+7%) since July 2024, hiring continues to decline, down 10% year-over-year. This misalignment signals potential recruiter burnout and inefficiencies in workforce planning, as time-to-fill metrics remain stagnant even amid rising applicant volume. With pressure mounting, talent teams are approaching a pivotal moment in how and where they apply AI.
“There’s tremendous opportunity for talent teams ready to put AI to the test,” said Ben Eubanks, chief research officer, Lighthouse Research & Advisory. “Most importantly, that impact goes beyond automating tasks into creating new value for candidates, hiring teams and organizations.”
According to a 2025 Lighthouse Research & Advisory survey of 1,013 employers featured in the iCIMS report, employers leveraging AI in hiring are realizing significant efficiency gains:
- Seeing is believing: While 64% of AI adopters estimate saving over two hours per recruiter weekly, non-users remain pessimistic about its value. The greatest difference in estimated value and efficiency between adopters (24%) and non-adopters (13%) occurs at five hours per week, indicating that familiarity with AI positively affects the estimated value and efficiency.
- AI for filtering, humans for hiring: Employers are embracing AI for high-volume tasks such as screening (55%) and matching (40%) but overwhelmingly prefer human judgment for final offers (7%).
- AI is turning the tide: Talent teams are reinvesting time saved with AI into spending more time engaging with candidates (54%) and analyzing recruiting metrics and business impact (41%).
Key findings from an iCIMS survey of 1,000 U.S. adults reveal how candidates are experiencing and evaluating the role of AI in the hiring process:
- Workforce unfamiliarity: While the emerging workforce may be “AI natives,” most of the talent pool is navigating the application process with little to no prior knowledge. Fifty-six percent of Gen X respondents reported low familiarity with hiring AI.
- Clear generational divide: A combined 62% of millennials and 59% of Gen Z believe AI speeds up hiring. This figure drops to 47% for Gen X and a low of 41% for baby boomers.
- To trust or not to trust: Younger candidates believe AI is fairer (44%), while older generations like Gen X (21%) and baby boomers (18%) remain deeply skeptical of its objectivity. However, 82% of candidates agree that they want to know how AI evaluates their applications.
“Our candidate data points to one overarching theme: Any successful recruiting strategy requires transparency in how organizations are using AI,” said Trent Cotton, head of talent acquisition insights, iCIMS. “Employers must make it a priority to educate and communicate with candidates on where AI is involved and where there will be a human in the loop.”
Earlier this month, iCIMS announced it was awarded ‘AI-based Human Resources Solution of the Year’ at the 2025 AI Breakthrough Awards for cutting-edge AI innovation that accelerates every stage of recruiting and hiring. iCIMS customers like The Wendy’s Company, using its cutting-edge, responsible AI solutions, hire three times as fast as those not using iCIMS AI Talent Explorer.
Download the iCIMS Insights August Workforce Report for a deeper dive into the latest labor market trends and the evolving role of AI in hiring. To learn more about how iCIMS Insights can help move your business forward, visit the iCIMS booth at HR Tech 2025 September 16-18 in Las Vegas.