The Transformation of Talent Acquisition Through Artificial Intelligence in the Context of Industry 4.0: A Systematic Literature Review

Abstract

The Fourth Industrial Revolution (Industry 4.0) has transformed organisational functions, with artificial intelligence (AI) emerging as a key force in talent acquisition (TA). This systematic literature review synthesises findings from 20 peer-reviewed studies to examine how AI tools are integrated across the talent acquisition process, including job posting, candidate sourcing, screening, interviews, and onboarding, and their effects on efficiency, fairness, and strategic alignment. The review highlights notable points, including a 55–60% reduction in time-to-hire, 20–30% in cost savings, and improved candidate engagement. However, ethical issues, algorithmic bias, transparency problems, and disparities in adoption between large and small firms remain major challenges. Findings indicate a growing consensus favouring a hybrid human–AI recruitment model that automates repetitive tasks while maintaining human oversight for cultural fit and ethical considerations. The study also identifies key research gaps, including sector-specific adoption patterns, cross-national comparisons, and the long-term organisational effects of AI-driven recruitment. It concludes by advocating a human-centred approach to AI in TA, aligned with emerging Industry 5.0 principles that emphasise transparency, inclusivity, and sustainable talent management.