How AI is Transforming Outplacement: Trends and Insights

Recent insights from LHH show a clear shift in why people are being made redundant. While the economy still plays its part, 29.7% of redundancies now come down to one key issue: a lack of the right skills. As AI and automation continue to reshape roles, many workers are finding it harder to keep up with what employers need.

The good news? Businesses are responding. A growing number of 82% HR leaders are now focusing on redeploying talent internally, helping people grow into new roles instead of facing the exit.

Efficiency and Personalisation Through AI

AI takes a lot of the admin stress out of outplacement by handling tasks like scheduling and managing candidate information—freeing up time for career coaches to focus on what really matters: supporting the person through their next move.

Furthermore, AI’s capability to analyse data means it can deliver tailored career paths, aligning employees’ unique skills, experiences, and ambitions with market opportunities. AI-powered job matching also accelerates placements, reducing transition periods and alleviating stress for individuals seeking new roles.

Key Insights and Emerging Trends

• Skills Gap Concerns: Nearly 30% of redundancies result from skills mismatches, highlighting the need for continuous workforce reskilling and internal mobility.
• Increased Focus on Redeployment: 82% of HR leaders now view internal redeployment as preferable to redundancies, supported by AI’s rapid analysis of transferable skills and internal opportunities.

Balancing AI with Human Insight

Despite AI’s benefits, the human element remains vital. Career transitions are deeply personal experiences, requiring empathy and genuine human support. Additionally, human oversight is essential to prevent potential biases embedded in AI algorithms.

At LHH, we believe the ideal outplacement solution blends advanced AI tools with authentic human guidance. Technology should enhance, not replace, human interaction, creating a balanced, empathetic, and effective career transition experience.

AI is undeniably transforming outplacement, providing speed, accuracy, and personalisation. However, success lies in combining technological advancements with human empathy and insight. At LHH, we remain committed to helping organisations harness AI responsibly, ensuring smooth, supportive transitions for individuals and businesses alike.