If you talk to talent acquisition leaders right now, you will hear two very different stories about AI and the future of work.

One story says we are still early in a steep curve. AI keeps getting smarter and cheaper. In this view, a big chunk of day-to-day recruiting is already better handled by machines that do the screening, scheduling, and even parts of the interview. It’s a view epitomized by Kevin Wheeler, who framed it at last year’s ERE Recruiting Innovation Summit as a “phoenix or dodo” moment.

The narrative has only strengthened since then, driven by the utility of AI as a consumer product and the mass-adoption of AI by business. It’s almost impossible to find a product release or startup in HR tech that is not AI-driven.

Some recent studies also support this story. On ERE.net this week, I wrote about a study that compared the results of over 70,000 applications that were split between AI and human interviewers for entry-level call-center roles. AI showed significantly better outcomes on offers, job starts, and first-month retention, and most candidates picked the AI when given a choice.

But an alternative narrative is emerging. A recent MIT report found that despite the billions invested in corporate AI efforts, 95% of organizations are getting zero return from those projects. A Gartner report projects that over 40% of agentic AI projects will be canceled by the end of 2027.

While many TA professionals are personally using AI to support their work, it’s tough to find examples of clear success on an enterprise level, and I’ve tried reaching out to dozens of organizations. (If you have a case study at your company, please let me know—I’d love to hear about it!)

The two stories do not necessarily contradict each other. They describe different parts of the same landscape. On one side, we have credible evidence that AI can outperform humans in specific, well-scoped tasks like structured interviewing for high-volume roles. On the other, we have a growing record of pilots that do not stick once they meet enterprise workflows, governance, and the usual frictions of big organizations.

In an environment of rapid change, the challenge is to separate the hype of what is possible from the reality of implementing AI in an effective way. Next week, I’ll be in Las Vegas for the HR Technology Conference, talking with dozens of vendors and kicking the tires on their products. I’ll let you know what I learn.

— David

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Featured Story

Keep the Art in Talent Acquisition

Chris Carver urges recruiters to use AI with intention while preserving the human craft of connection. He offers practical tactics like using AI to draft outreach templates, build pieces of Boolean, and do market research, then adding personalization and judgment so the art of TA does not get lost. (ERE)

More Recruiting Insights

OpenAI announces AI-powered hiring platform to take on LinkedIn. OpenAI is building a platform to use AI to match workers with employers. The service targets a mid 2026 launch and would compete directly with LinkedIn. The timing of the announcement was conveniently timed to coincide with the President’s dinner with tech CEOs, including OpenAI’s Sam Altman, leading some to wonder if this will b. (TechCrunch)

Application tourism, AGI, HR Tech and the stack fallacy. Thomas Otter has become a must-read for me. In this post, he warns of the trap of stack fallacy, where platform companies wander into HR apps because they look simple, then discover the hard parts live in deep workflows, integrations, and context. Case in point: Google for Jobs. (Thomas Otter)

Colorado lawmakers abandon special session effort to tweak AI law, will push back start date to June 2026. Colorado lawmakers scrapped a special-session deal to revise the state’s new AI law and instead moved to delay its start to June 30, 2026. The statute, as written, would require companies to assess and disclose AI use in consequential decisions like hiring and lending, with enforcement by the attorney general and fines up to $20,000 per violation. (The Colorado Sun)

US payrolls benchmark revision estimate suggests labor market weaker than previously thought. In a revision that surprised nobody working in talent acquisition, the Bureau of Labor Statistics reported that the U.S. economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated. The new numbers mean that job growth in that period was less than half what was previously estimated. The sky is back to being blue, and water is wet again. (Reuters)

Conferences

ERE Recruiting Innovation Summit

San Diego, CA

November 4-5, 2025

The ERE Recruiting Innovation Summit is the premier independent, practitioner-led event designed to deliver actionable insights for talent acquisition professionals. Join your peers to explore practical ideas, proven best practices, and case study solutions from leaders who are tackling the same recruiting challenges as you.

The full agenda is now live—see what’s in store and start planning your experience.

(ERE Recruiting Innovation Summit)

Webinars

Beyond the Hype: Practical Ways AI and Automation Are Empowering TA Teams

September 10, 2025 | 2:00 PM EDT | 1 Hour

See how leading TA teams use AI to work smarter, keep the human touch, and strengthen their employer brand. Kim Stevens (Employ) and Larry Hernandez (RecruiterDNA) share practical plays that streamline sourcing, personalize outreach that gets responses, and build consistent, on-brand hiring experiences. You will leave with concrete ways to implement automation with intention, track meaningful outcomes, and give recruiters more time for real conversations. (ERE)