How AI and automation Are reshaping contingent workforce management

The world of work is changing rapidly, driven by technological advancements and evolving business needs. One of the most significant shifts has been the rise of the contingent workforce, with freelancers, contractors, and temporary employees helping organisations fill skills gaps with flexibility and speed.  

The integration of AI in workforce management is increasing, and revolutionising how organisations source, manage, and optimise their contingent talent pools. 81% of UK HR experts are open to integrating AI into their workplace functions, with half expressing excitement and curiosity about its potential.  

AI in contingent workforce management: Transforming talent acquisition and deployment 

AI is making waves in contingent workforce management by streamlining recruitment processes, taking the first steps of decision-making, and potentially matching talent more accurately.  

AI-powered platforms can analyse huge amounts of data to identify the best candidates for a project, predict future talent needs, and assess worker performance in real time. For contingent workforce management, this could mean faster onboarding, reduced hiring bias, and more precise alignment between business requirements and workforce capabilities. 

However, there are some concerns about relying on AI too much in this area. For example, if the data used to train AI systems contains existing biases, these tools may inadvertently overlook highly qualified candidates who don't fit historical patterns.  

One historic example of this was when an algorithm that was being tested as a recruitment tool by an ecommerce company was found to be sexist and had to be stopped. The AI system was said to be trained on data submitted by applicants over a 10-year period, much of which came from men. 

To ensure successful use of AI in workforce management, ongoing human oversight and input, along with leveraging the most current and accurate data, will be essential for guiding fair and effective decision-making. 

Automation in contingent workforce management: Streamlining processes and boosting efficiency 

Automation in HR and workforce management is reshaping how organisations handle administrative tasks and compliance requirements, freeing people up to focus on strategic initiatives.  

Automated systems can manage onboarding, time tracking, invoicing, and contract renewals for contingent workers, reducing manual errors and ensuring consistent compliance with labour regulations.  

This not only enhances operational efficiency but also minimises risks associated with managing a flexible workforce. Some examples include: 

In the same way as in AI, automation needs monitoring and managing in a number of scenarios. For example, automated onboarding will be designed for the masses and might not meet the needs of workers with disabilities.  Using automation alone to make decisions on future assignments of workers might not take into account nuances such as preferred environments, personalities, and job satisfaction, which would affect future performance and retention.