AI threat - how serious should take it?19 Sep 2025 20:53
AI has created strong negative sentiment towards recruitment agencies. Investors are concerned this is in terminal decline - not a cycle.
The fact is that AI is reducing work substantially. Companies do not need as many workers. Recruitment agencies provide workers. You see the problem.
The 'switch' to AI isn't in full motion yet (we resist change) but change will speed up and the resulting job losses will become more obvious. The potential for AI to replace people is scary across so many sectors. The question mark is, will people transition their role around AI and will new products and services arise as a consequence of AI which will create new jobs. I think the answer to this question is yes - but only to an extent. It will not make up for total jobs lost. How this affects Sthree is another question. Sthree may even be well placed to benefit from the shift to AI.
It's not even just the demand for workers - but also the ability of Sthree to defend their own fees when the very process of recruiting involves less work. Or put another way, work that ultimately the client pays for. Less work equates to less profit in this context. This means Sthree needs to raise their service offering to support their existing fees but again that's easier said than done.
How this pans out in the future is difficult to predict and I suspect most of you amateurs haven't thought it through...oh, AI could advise you! ;)