Recruit CEO Hisayuki Idekoba on how AI Is transforming hiring

On May 20th, Recruit Holdings CEO Hisayuki Idekoba discussed with CNBC why global labor shortages are becoming a long-term challenge - and how Recruit is using AI to tackle it head-on.

Recruit is a Japanese company that also owns Indeed and Glassdoor globally in addition to operating the Japan-based dominant Recruit jobs portal.

Japan has the most acute population decline in the world and is turning more towards AI and automation over increased immigration to raise remaining workforce productivity.

This productivity increase is estimated to help companies justify the wage increases needed to stay ahead of inflation and keep pension funds afloat.

Higher wages mean stronger real estate affordability for buyers as they can qualify for home loans in a rising price environment.

Whatever solutions, even partial one, Japan comes up with for raising labor productivity using AI and automation will most likely be emulated globally.

Key Takeaways:

• Global hiring demand has dropped for two to three consecutive years, with the U.S. seeing a 10 - 15% year-over-year decline

• Recruit Holdings is responding by integrating AI agents into its platforms used by 300 million job seekers and 3 million employers monthly

• AI is streamlining the hiring process, reducing manual labor, and solving the long-standing issue of job seekers receiving no response

• The $300 billion global HR industry is undergoing a major transformation, with AI making recruitment faster, simpler, and more efficient

• Record-breaking revenue and EBITDA at Recruit demonstrate the power of AI-enhanced hiring solutions

• Recruit envisions a future where AI helps job seekers map out multi-year career paths, not just land a job

• The company’s immediate focus is on intelligent matching, with long-term goals including AI-guided up-skilling for an evolving job market