Talent Acquisition Matrix Study

In this episode of the “Gen AI Breakthrough” podcast, Andy Warzecha, Jessica Haley and Matt Merker discuss The Hackett Group’s Talent Acquisition Digital World Class® Matrix Study. They explore how tech vendors are leveraging artificial intelligence (AI) to enhance recruiter efficiency, reduce hiring costs, and improve candidate quality, while highlighting key differentiators and emerging trends in the talent acquisition landscape.

Welcome to The Hackett Group’s “Gen AI Breakthrough” podcast,where top experts give actionable artificial intelligence (AI) insights, expert advice and strategies to achieve breakthrough business performance. In this episode, Andy Warzecha, Jessica Haley, and Matt Merker discuss The Hackett Group’s Talent Acquisition Digital World Class^Ò Matrix Study. They explore how tech vendors are leveraging AI to enhance recruiter efficiency, reduce hiring costs and improve candidate quality, while highlighting key differentiators and emerging trends in the talent acquisition landscape.

The study represents a shift from previous comparative matrices by incorporating client feedback. Instead of generic placement, the new rating style considers geography, industry and company size. This enhances the analysis of vendor capabilities and value realization in a more customized manner.

To begin, Matt explains that the study builds upon a broader 2024 analysis of the human capital management technology market. Talent acquisition remains a critical area in human resources (HR) tech, particularly with AI-driven innovations. The Matrix 2.0 approach evaluates vendors based on their ability to enhance hiring speed, efficiency and cost-effectiveness. Then, Jessica highlights that many organizations are deploying AI to improve hiring efficiency and reduce costs. The study not only assesses vendor capabilities but also their tangible impact on business outcomes. The rigorous methodology behind the study includes requests for information from vendors, vendor briefings, Hackett experts’ analysis, performance metrics and benchmarks, and customer interviews. This multifaceted approach ensures a comprehensive evaluation of market players.

Key findings reveal that vendors are helping HR teams by increasing the percentage of qualified candidates, reducing time to fill positions and automating manual tasks, allowing recruiters to focus on higher-value work. AI adoption is growing in recruitment, but vendors focus on AI as a support tool rather than a replacement for human recruiters. AI applications in demand include job description generation, candidate scoring, skills matching, predictive analytics and AI-driven automation. A standout example is real-time AI-generated interview prompts based on candidate responses, helping less experienced interviewers ask more effective follow-up questions.

The Hackett Group sees AI as a critical investment, with budgets for AI initiatives increasing significantly in 2025. Jessica highlights that six of the top 10 HR priorities relate to talent acquisition. A case study is shared about an organization that strategically implemented AI, reducing recruiter workload, cutting attrition from 25% to 6% and improving recruiter satisfaction. This organization was recognized with an award for its innovative AI deployment.

In closing, listeners are encouraged to read the full report, which offers a deep dive into how AI impacts the talent acquisition market and insights for vendors on market gaps and opportunities.

Time stamps:

0:12 – Welcome to this episode hosted by Andy Warzecha.

2:14 – The purpose of the study.

4:01 – Outlining the study’s key findings.

8:30 – AI as an organizational imperative.

10:01 – Final thoughts and recommendations.