The ERE Recruiting Innovation Summit took place November 4-5, 2025 in San Diego, bringing together recruiting leaders to discuss the industry's most pressing challenges. Three dominant themes emerged from the conference: AI adoption in recruiting, navigating shrinking budgets, and the shift to skills-first hiring.

AI Adoption Reaches 67% of Recruiting Teams

According to sessions and surveys conducted at the summit, 67% of recruiting organizations are increasing their usage of AI-powered tools in 2025. Speakers highlighted the delicate balance between automation and maintaining the human touch that candidates value.

Key AI trends discussed:

• AI voice interviews gaining unexpected traction with candidates who report feeling less judged
• Automated sourcing tools scanning 800M+ profiles but often surfacing the same "obvious" candidates
• AI-written InMails showing 39% higher acceptance rates but requiring customization to avoid sounding generic
• Resume screening automation reducing time-to-review by 60% but raising concerns about bias

Conference attendees reported that the biggest challenge isn't whether to adopt AI, but how to implement it without degrading candidate experience or introducing bias into hiring decisions.

73% of HR Teams Face Stagnant or Shrinking Budgets

Despite expectations of a hiring surge in 2026, budget constraints dominated discussions at ERE. According to data shared at the summit, 73% of HR teams are operating with stagnant or shrinking budgets compared to 2024.

This creates a paradox: 63% of employers plan to expand payrolls in 2026, but they're expected to do so with the same (or less) budget they had in 2025.

Speakers addressed practical strategies:

• Building talent pipelines now during slower periods to prepare for 2026 hiring
• Negotiating budget increases with data on cost-per-hire and time-to-fill metrics
• Prioritizing high-ROI sourcing channels and cutting underperforming job boards
• Leveraging employee referrals as a low-cost, high-quality sourcing strategy

The message was clear: recruiters who can demonstrate ROI and efficiency will secure budget increases, while those who can't will be left scrambling.

Skills-Based Hiring Hits 81% Adoption

Perhaps the most significant trend discussed at ERE was the rapid adoption of skills-based hiring. Conference data showed that 81% of companies now use skills-first approaches, with 45% dropping degree requirements for at least some roles.

Challenges highlighted:

• Candidate skepticism: Many candidates view "degree optional" as code for "we'll pay you less"
• Compensation concerns: Companies struggle to position skills-based roles authentically
• Assessment overload: Skills testing adds time to the hiring process
• Internal resistance: Some hiring managers still default to degree requirements

Sessions focused on how to sell candidates on skills-first opportunities, address compensation concerns upfront, and attract great talent who might otherwise skip degree-optional postings.

The AI and Human Touch Debate

One of the most debated topics at the summit: how much AI is too much? Attendees shared stories of AI interview bots asking bizarre questions, automated follow-ups spamming candidates, and sourcing tools that recommended CEOs for entry-level roles.

The consensus: AI is powerful for high-volume screening and administrative tasks, but final rounds, executive hiring, and relationship-building still require human judgment and personalization.

What This Means for Recruiters

The ERE Summit made it clear that recruiting in 2025-2026 will require balancing three competing forces:

1. Adopting AI to stay competitive and efficient
2. Doing more with less budget while preparing for a hiring surge
3. Shifting to skills-based hiring while managing candidate and internal stakeholder expectations

Recruiters who can navigate these tensions—using AI strategically, demonstrating ROI to secure budget, and authentically positioning skills-first roles—will thrive. Those who can't will struggle.

The next major industry event, HR Tech Week, is scheduled for late November 2025 and is expected to continue these conversations with a deeper focus on technology implementation.