When it comes to modern hiring practices, it is more important than ever to empower HR teams with the tools needed to build effective teams. With the surge of AI use across industries, AI has become a key tool in the arsenal to lead businesses to a people-first future. There are three main ways that AI is changing the job market and hiring landscape: actively, passively and adaptively. 

AI and Candidates

Actively, AI is helping on the candidate side with writing resumes and cover letters, learning new skills needed for hiring, researching employees and interview prep. Passively, AI is creating new jobs. Despite popular belief that AI is taking jobs from workers, experts claim that over the next decade, over 150 million jobs will be created by AI. This is because the software is opening doors for new roles that never existed before, offering new opportunities for upskilling and mastering. Adaptively, AI is transforming roles to become more efficient and accessible. For those with disabilities, roles can become easier to navigate with AI, and for the everyday worker, administrative tasks can be streamlined. 

In 2026, the priorities of the modern employee are shifting, with the focus on greater pay. Employment software is a big help in getting them to this new reality. AI is helping workers to achieve these goals through upskilling opportunities that can increase pay by as much as 25%. There are also wage premiums for job vacancies requiring AI skills in the United States. Work-life balance is also becoming increasingly important, especially since remote work has become more popular. AI helps with work-life balance because it offers more free time to busy workers, alleviates administrative burden and supports the possibility of 4-day work weeks. Job ability and stability is also made possible through AI use, as upskilling and AI integration makes people feel more capable to handle the tasks at hand and excel in their roles. 

Generational Differences

By generation, Millennials and Generation Z are the most prominent in AI user pools, making it an easier transition to integrate these tools in the workplace. Over half of these younger workers already use AI daily as ways to make more money, increase well-being and find meaning in their roles. Promoting AI use in the workplace amongst young people is a way to mitigate a phenomena known as “job-hugging,” which is the concept of workers staying in their current roles despite feeling unsatisfied. This is largely due to an unstable job market and uncertain work landscape. Job-hugging also contributes to poor workplace culture, which can be mitigated through AI use.

Conclusion

Finding, keeping and growing top talent is paramount to building strong teams that drive success. Employee retention and loyalty can be fostered through AI use by personalizing engagement strategies, reducing overall stress and providing collaborative and flexible workflows. Most candidates that turn down compensation packages are deterred by the mission, vision and team culture of a company, demonstrating just how important it is to prioritize this. With AI in the driver’s seat, businesses are more likely to foster a strong team culture and hire people who are willing to go the extra mile.