Key takeaways:
- Workforce redistribution, not replacement: AI will reshape how work gets done, freeing up administrative tasks in healthcare and industrial sectors while creating opportunities for staffing agencies to act as strategic workforce advisors.
- Hybrid transformation is the sweet spot: With 54% of jobs facing moderate transformation, staffing firms have the greatest opportunity to guide clients in augmenting — not replacing — roles with AI.
- Tech skills in highest demand: More than half of hybrid and fully transformable skills are tech-related, with demand shifting toward AI oversight and strategic problem-solving rather than routine coding.
According to Indeed’s latest AI at Work Report 2025, 26% of all jobs could be “highly” transformed by generative AI, while another 54% face “moderate” transformation.
Instead of jobs being simply “replaced” or “safe,” the research identifies four distinct categories:
- Minimal transformation (40% of skills): These roles requiring physical presence and human interaction — like nursing and skilled trades — remain largely unchanged. Your healthcare and industrial staffing divisions will continue to see strong demand, though administrative components within these roles may shift.
- Assisted transformation (19% of skills): AI provides support but humans lead the work. Think of your recruitment consultants using AI-powered candidate matching tools while maintaining control over client relationships and strategic placement decisions.
- Hybrid transformation (40% of skills): Here’s where the biggest opportunity lies for staffing firms. AI handles routine tasks while human oversight remains essential. This category represents the sweet spot for productivity gains without wholesale job displacement.
- Full transformation (1% of skills): Despite the headlines, only a tiny fraction of skills face complete automation. Even then, these are typically sub-components of larger workflows, not entire job functions.
What this means for staffing agencies
1. AI is driving workforce redistribution, not replacement
The data suggests that rather than eliminating positions, AI will reshape how work gets done. For your clients in software development, expect to see smaller but more specialized teams focused on oversight and complex problem-solving. Your healthcare clients will likely see administrative time freed up for patient care. This shift creates opportunities for staffing firms to position themselves as strategic workforce planning partners, not just talent suppliers.
2. The biggest opportunity is somewhere in the middle
The 54% of jobs facing moderate transformation present the biggest strategic opportunity. These roles aren’t destined for high or low AI impact — their trajectory depends on organizational decisions. As a staffing leader, you can influence this outcome by helping clients understand which positions benefit most from AI augmentation and developing talent strategies accordingly.
3. The demand for tech skills is intensifying
The research shows that technology skills dominate the deeper transformation categories. More than half (54%) of hybrid transformation skills and 57% of fully transformable skills are technology-related. This validates what many staffing executives already suspect: the premium for tech talent will continue growing, but the nature of that talent is evolving toward AI oversight and strategic thinking rather than routine coding.
Some steps agencies can take to get ahead amid this AI transformation include:
- Audit client industries and roles to categorize transformation needs and discuss AI-augmented workforce planning.
- Internally, evaluate operations for hybrid opportunities in areas like candidate screening and job matching to boost efficiency without replacing human judgment.
- Strategically position your firm as a leader in workforce transformation.
- Develop AI-augmented service offerings, train recruitment teams to use AI, build client relationships in resilient industries, and become an expert in human-AI collaboration.
The goal is to shift from traditional staffing to specialized practices in AI oversight and comprehensive workforce transformation consulting.
