Why AI Advisory Has Become the Defining Capability in Recruitment Process Outsourcing: Insights from John Fitzgerald of LevelUP HCS

Why AI Advisory Has Become the Defining Capability in Recruitment Process Outsourcing: Insights from John Fitzgerald of LevelUP HCS
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by GAI with RPOA Team

TLC John Fitzgerald

As artificial intelligence adoption accelerates across talent acquisition, organizations are encountering a new challenge. The question is no longer whether to adopt AI, but how to implement it in a way that delivers measurable value while managing risk.

This shift is reflected in the 2026 RPO Buyer Trends Study, conducted by the Recruitment Process Outsourcing Association (RPOA) in partnership with Lighthouse Research & Advisory. For the first time, HR and talent leaders ranked AI consulting and expertise as the most valuable capability they expect from their Recruitment Process Outsourcing (RPO) partners.

This article is based on an edited version of a recorded interview with John Fitzgerald, President and Chief Strategy & Innovation Officer at LevelUP Human Capital Solutions, a Silver Member of the Recruitment Process Outsourcing Association (RPOA). The conversation is part of the Talent Leader Council interview series conducted by Lamees Abourahma, CEO at the RPOA.

Key Takeaways for Talent Acquisition Leaders

  • AI advisory has become central to Recruitment Process Outsourcing value, surpassing traditional delivery expectations
  • Organizational readiness and adoption capacity are the primary constraints on AI success
  • Talent leaders must align stakeholders across HR, finance, legal, and recruiting to define AI outcomes
  • Risk management, including fraud detection and compliance, is now a top priority in AI-driven hiring
  • Clear change management and role definition are critical to enabling recruiter adoption of AI

Why AI Advisory Has Surpassed Traditional RPO Capabilities

The elevation of AI consulting reflects a fundamental shift in buyer expectations. Organizations are no longer seeking only execution efficiency from their Recruitment Process Outsourcing partners. They are looking for guidance on how to navigate a rapidly evolving technology landscape.

RPOA: Was it surprising that AI consulting and expertise ranked as the top capability in the 2026 RPO Buyer Trends Study?

Fitzgerald: The finding is validating rather than surprising. The conversation has matured. Buyers have moved beyond asking whether AI belongs in talent acquisition. They are now asking how to bring it in responsibly and at a pace their organizations can absorb.

This shift is driven by the pace of AI innovation. As Fitzgerald notes, the velocity of change is creating a widening gap between what technology can deliver and what organizations are prepared to implement.

“Clients don’t need more enthusiasm about AI. They need a partner who can build a realistic path forward,” said John Fitzgerald, President at LevelUP Human Capital Solutions.

For talent leaders, this underscores a key implication. The value proposition of Recruitment Process Outsourcing is evolving from execution to strategic advisory, particularly in translating AI potential into practical hiring strategies.

The Difference Between Using AI and Advising on AI Strategy

As AI adoption increases, a clear distinction is emerging between RPO providers that deploy AI tools and those that can guide organizations in using them effectively.

RPOA: What separates an RPO provider that uses AI from one that can advise on AI strategically?

Fitzgerald: Using AI tools is now baseline. Strategic advisory requires understanding the client’s business problem, assessing organizational readiness, and sequencing adoption so the technology can deliver lasting value.

Providers focused only on tools tend to emphasize efficiency gains within their own delivery models. In contrast, advisory-focused providers take a broader view, helping organizations make informed decisions before implementation begins.

“The risk is not whether AI technology will work. The risk is the readiness of the organization to adopt it,” Fitzgerald explained.

This distinction has direct implications for talent leaders. Selecting an RPO partner now requires evaluating not just technology capability, but the ability to guide decision-making, manage adoption, and align with business objectives.

AI Investment Priorities Reflect a Shift Toward Risk Management

Data from the 2026 RPO Buyer Trends Study highlights where organizations are focusing their AI investments over the next 12 to 18 months.  Top priorities include candidate sourcing; resume and profile screening; and compliance, risk, and fraud detection. 

The inclusion of fraud detection as a top priority signals a notable shift in the AI conversation.

RPOA: What does this shift toward risk and protection indicate for talent acquisition leaders?

Fitzgerald: AI is now being used on both sides of the hiring process. Organizations are using it to identify candidates, while candidates are using it to present themselves. This introduces new risks around authenticity and skill validation.

This dynamic creates new challenges for hiring teams, including the need to verify candidate identity and ensure the accuracy of AI-enhanced applications.

“AI is being used against AI. That creates real questions about whether candidates truly possess the skills they present,” Fitzgerald noted.

For talent leaders, this reinforces the need to balance efficiency gains with governance and oversight, ensuring that AI-driven hiring processes maintain integrity.

Change Management Will Determine AI Adoption Success

While AI strategy often focuses on tools and return on investment, the success of implementation depends heavily on how organizations manage change within their teams.

The 2026 RPO Buyer Trends Study indicates that AI is already delivering measurable benefits:

  • 75 percent of recruiting teams report reduced workloads due to AI
  • 44 percent report saving two to five hours per week
  • 32 percent report saving more than five hours per week

However, realizing these benefits requires addressing the human side of adoption.

RPOA: How should organizations approach change management for recruiting teams adopting AI?

Fitzgerald: Organizations need to define what the recruiter role looks like in an AI-enabled model. Clarity around what is changing, what remains, and what becomes more valuable is essential.

AI is shifting recruiter responsibilities toward higher-value activities, such as stakeholder engagement and advisory work. However, without clear communication, this shift can create uncertainty and resistance.

“When people can see what their future role looks like, skepticism drops significantly,” Fitzgerald said.

For talent leaders, this highlights the importance of structured change management, transparent communication, and role clarity in driving adoption.

Aligning Stakeholders to Define AI Success

One of the most complex challenges in AI adoption is aligning multiple stakeholders with different priorities.

Data from the 2026 RPO Buyer Trends Study shows that:

  • 29 percent of employers cite balancing AI benefits and risks as their top challenge
  • 21 percent identify gaining leadership buy-in as a primary challenge

RPOA: Do buyers know what they are asking for when they request AI expertise from RPO providers?

Fitzgerald: Buyers generally know the outcomes they want, but not the path to achieve them. Advisory begins by aligning stakeholders and defining a credible roadmap.

Stakeholders across the organization bring different expectations:

  • Boards prioritize innovation
  • Finance focuses on return on investment
  • Legal and compliance manage risk
  • Recruiting teams focus on operational impact

“If you ask each stakeholder what success looks like, you will get very different answers,” Fitzgerald explained.

This makes alignment a central component of AI strategy. Talent leaders must define a shared vision of success and ensure that all stakeholders are working toward it.

Governance and Trust Are Emerging as Key Differentiators

As AI becomes more embedded in hiring processes, governance and operational integrity are becoming critical factors in RPO selection.

RPOA: What is the most important question talent leaders should ask an RPO provider about AI?

Fitzgerald: Buyers should ask whether the provider operates at a standard they can stake their reputation on. That reflects governance, risk management, and data integrity.

This includes capabilities such as:

  • Data governance and privacy controls
  • Defined points for human oversight
  • Auditable processes and documentation
  • External validation such as ISO certification

“A provider’s internal standards are a preview of the counsel they will bring to your program,” Fitzgerald said.

For talent leaders, this represents a shift in how RPO providers are evaluated. Governance maturity and trust are now as important as delivery performance.

Conclusion: From Technology Adoption to Strategic Integration

The findings from the 2026 RPO Buyer Trends Study highlight a critical inflection point for Recruitment Process Outsourcing. AI advisory has moved to the center of buyer expectations, reflecting the growing complexity of integrating technology into talent strategies.

For talent leaders, the path forward requires more than adopting new tools. It requires aligning stakeholders, managing risk, enabling workforce adoption, and building governance frameworks that support sustainable outcomes.

For the Recruitment Process Outsourcing Association, these insights reinforce its role as a trusted convener of the RPO ecosystem, advancing evidence-based understanding of how AI is reshaping talent acquisition.

As AI continues to evolve, the organizations that succeed will be those that can translate its potential into practical, scalable, and responsible hiring strategies.

 

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