A surprising number of companies want hiring managers to prove AI can’t do the job before a role is approved

With year-to-date hiring plans sinking to a 16-year low according to a report from Challenger, Gray & Christmas, many people are beginning to feel the impacts—and it’s reasonable enough to believe that artificial intelligence (AI) might have something to do with the slump. 

Zip, a company that creates procurement software, recently released a study that shows how AI might be factoring into hiring decisions even more than previously believed. 

The report surveyed 1,030 “experienced leaders” who are also responsible for some degree of spending and supply management within their companies. Seven in 10 of the leaders—which amounts to 67%—reported that they’re already using AI in “spend and supplier management,” while 17% say they’re using it widely.

Basically, AI is taking over faster than most individuals and companies expected. 

One of the more interesting parts of the study found that optimism about AI is outpacing readiness. This can seem contradictory when you consider that 75% of companies are factoring AI into hiring decisions, but this number could reflect companies that list AI literacy in their job descriptions. 

The more alarming finding may be that 17% of companies now require proof from hiring managers that a job can’t be performed by AI before a role is approved.

Human skills will still matter

The study found that the skills being prioritized among the leaders are changing, with “AI and automation fluency” being the most critical skill expected in the next three years, followed by data analysis and decision support.

The evidence further implies that AI is leading companies to rearrange their spending priorities. Respondents identified professional and legal services, gig workers, consultants, and travel and events among the areas where they’re looking for cost reductions this year.

“By gathering these broad perspectives, we aimed to illuminate not just how spend is managed today, but what it reveals about the future of business,” Nick Heinzmann,” Zip’s head of research, wrote in the report, which Zip calls the “State of Spend” survey.

The study reflects that the desire to save money by having AI replace workers may represent an overall contradiction of most companies’ overall goals—especially when establishing relationships with clients is more important than ever.

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