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How Artificial Intelligence Is Transforming the Recruitment and Employment Process

24/10/2025
4 min
How Artificial Intelligence Is Transforming the Recruitment and Employment Process

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In today’s era of digital acceleration, artificial intelligence (AI) has become an indispensable ally in human resource management—particularly in recruitment and employment. Greek companies face significant challenges: massive volumes of applications, limited evaluation time, and the need to attract specialized talent in a highly competitive environment.

According to Demand Sage’s 2025 report, 87% of companies worldwide use AI-powered recruitment tools. In Greece, the labor market—especially in sectors such as technology, shipping, tourism, and energy—is rapidly embracing AI-driven hiring automation. This article, based on research adapted to the Greek market, analyzes how AI optimizes the core stages of recruitment—from candidate sourcing to onboarding—supported by recent studies and data. It also examines the impact on digital employer branding, data-based transparent compensation, and L&D (Learning & Development), offering a balanced view of the opportunities and challenges in the Greek context.

 

Recruitment Automation and Efficiency: From Screening to Faster Hiring Decisions

The traditional hiring process involves countless hours spent reviewing CVs and conducting preliminary interviews—often leading to delays and human error. AI is reshaping this model with algorithms that can analyze thousands of profiles in seconds, identifying suitable candidates based on skills, experience, and cultural fit.

In Greece, where the average time to hire AI engineers is 38 days (Job Index 2025), AI-assisted candidate engagement and automated screening significantly reduce the workload of HR teams—especially in Athens and Thessaloniki, which together account for 92% of tech job openings.

A LinkedIn (2024) study shows that 62% of recruitment professionals are optimistic about AI’s impact, while 27% are experimenting with generative AI. According to Demand Sage, over 65% of recruiters in the region have implemented AI to save time (44%), improve sourcing (58%), and reduce hiring costs by 30%. For instance, AI chatbots handle initial interactions, answer company-related questions, and schedule interviews—raising candidate response rates by 30% (Deloitte).

Moreover, AI reduces the average hiring time by 50% (Gartner, 2024), enabling companies to fill roles faster—crucial in a market where 68% of businesses report skill shortages in AI and data (SEV, 2025). This efficiency not only accelerates the process but also enhances the candidate experience, turning recruitment from a bureaucratic obligation into a personalized, engaging interaction.

 

Strengthening Digital Employer Branding: Attracting Talent with Smart Technology

Digital employer branding—how a company presents itself as an employer of choice—strongly influences career decisions. AI plays a central role in this area, analyzing data from social media, feedback sources, and market trends to refine communication strategies.

In Greece, where 74% of candidates research company culture before applying (Kariera.gr, 2025), the use of AI in digital employer branding has significantly boosted the appeal of companies like Cosmote, Helleniq Energy, and innovative startups such as Blueground.

According to Universum’s Employer Branding NOW 2025, 70% of employers use AI in recruitment and digital employer branding, enabling hyper-personalized campaigns and real-time testing of the Employee Value Proposition (EVP). A study in the International Journal of Business and Management (2022) shows a positive correlation between AI usage and improved perception of digital employer branding—candidates view AI-driven companies as more innovative, especially in a market where 81% of Gen Z prefer employers with a strong digital presence.

For example, AI-generated job ad content can increase qualified applications by 50% (LinkedIn, 2024). This approach not only enhances visibility but also reduces human bias, promoting diversity and equity in hiring—68% of recruiters believe AI helps eliminate unintentional bias (Tidio, 2024). Thus, digital employer branding becomes a data-driven strategic tool that attracts passive talent and strengthens corporate reputation within the Greek labor market.

 

Optimizing Transparent, Data-Driven Compensation

A critical stage in the employment process is determining compensation packages—and AI ensures transparency and fairness. Algorithms analyze market data, past performance, and internal benchmarks to recommend competitive offers.

In Greece, where the average private-sector salary reached €1,251 in February 2025 (ELSTAT), and AI engineers earn between €48,000 and €75,000 annually (Glassdoor, 2025), AI helps address wage disparities between Athens and regional areas.

According to Forbes (2025), AI improves job offers beyond simple salary benchmarking, promoting equitable results that may include benefits like additional leave or stock options. A Resume Builder (2025) survey found that 69% of employers plan to use AI for skill evaluation, including data-based transparent compensation, reducing costs by 30–40%. For senior AI roles, average net monthly pay reaches €6,200, with performance bonuses of 15–25%.

Additionally, AI supports pay equity by identifying historical patterns of discrimination. A McKinsey (2024) study shows a 25% increase in employee retention when personalized compensation packages are implemented. In a market where 66% of workers avoid roles involving opaque AI-driven decisions (Demand Sage, 2025), AI-enabled transparency builds trust—especially in Greece, where 78% of employees consider pay fairness a critical factor (Randstad, 2025).

 

Transforming L&D and Onboarding: Personalized Growth for Retention

After hiring, AI continues to make an impact through L&D by offering adaptive learning programs and faster onboarding. It analyzes learning styles to create personalized development paths, boosting engagement and productivity.

In Greece, where 64% of companies are investing in AI upskilling (EY, 2025), platforms such as OAED’s e-learning hub and private programs (PeopleCert, KnowCrunch) are integrating AI into training processes.

A McKinsey (2025) study reports a 45% increase in productivity with AI-based training. AI chatbots guide new hires through onboarding, reducing adjustment time by 42% (Accenture, 2024). IBM uses AI to recommend personalized learning paths, improving results and retention—crucial in a market with an 18% annual talent turnover rate.

Moreover, AI-powered simulations allow employees to safely practice daily tasks, reducing errors in industries like shipping and healthcare (Litslink, 2025). According to Whatfix (2025), 76% of employees accept AI-assisted onboarding, proving its potential to make L&D more accessible and effective in Greece.

 

 

Challenges and Future Prospects

Despite its benefits, AI comes with challenges: 40% of recruiters cite bias as a major concern, while 37% worry about privacy issues (AI in Hiring Survey, 2024). In Greece, the absence of a specific regulatory framework for AI in HR (unlike GDPR) calls for human oversight and ethical monitoring.

The AI in HR market is projected to reach USD 6.99 billion by 2025 (MSH), with Greece aiming to position itself as an AI innovation hub through the Elevate Greece initiative.

 

Conclusion

Artificial intelligence is radically transforming recruitment and employment—from automation and personalized L&D to transparent, data-driven compensation—while strengthening digital employer branding. With global savings projected at USD 1.2 trillion by 2025 (Hirebee), AI is not a trend but a strategic necessity.

Companies that embrace it will attract top talent, reduce costs, and enhance retention. The future of work is smart, fair, and human-centered—and AI is the key.

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