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AI Needs Humans in the Loop: The Next Phase of Workforce Technology

Artificial intelligence (AI) is rapidly becoming part of the workforce technology landscape, but the most effective applications may not be the ones that attempt to remove people from the process. Instead, AI is increasingly being positioned as a capability that can augment workflows, improve decision-making, and give leaders better information while preserving human judgment.

That distinction is becoming especially important as organizations navigate an increasingly crowded AI market, said Atrium’s VP of Enterprise Solutions, Kelly Couto, who was recently featured on a Future of Work Exchange (FOWX) Podcast with FOWX Managing Director Christopher Dwyer.

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Direct Sourcing Moves Into Its Next Generation

Direct sourcing is hardly a new concept, but its role in the extended workforce continues to evolve. What began as an emerging strategy for accessing known talent populations has become an increasingly important component of broader workforce programs. As Atrium’s VP of Enterprise Solutions, Kelly Couto, discussed during a recent Future of Work Exchange (FOWX) Podcast, featuring FOWX Managing Director Christopher Dwyer, the opportunity is no longer simply about creating a direct talent pool. It is about understanding how that pool fits alongside suppliers, early talent, managed services, and other workforce channels.

For organizations managing large contingent workforces, that distinction matters.

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Workforce Orchestration Unlocked: Elevating Services to Drive Enterprise Value

The extended workforce has become too important for organizations to manage through disconnected programs and isolated service providers. With contingent talent representing roughly 48% to 49% of the workforce in many industries, organizations increasingly need a more strategic approach to managing how work gets done. The challenge is not simply finding talent, as was pointed out during a recent Future of Work Exchange (FOWX) Podcast, featuring FOWX Managing Director Christopher Dwyer and Atrium’s VP of Enterprise Solutions, Kelly Couto. It’s about understanding where talent is needed, which workforce models make sense, and how different services can work together to create measurable business value.

That is where workforce orchestration is emerging as an important concept.

The modern workforce ecosystem includes a growing range of services, including managed service programs, employer of record and agent of record models, recruitment process outsourcing, embedded recruiting, early talent programs, direct sourcing, and SOW engagements. Rather than viewing these offerings as competing alternatives, Couto said organizations can increasingly treat them as components of a broader workforce strategy.

The starting point, however, should not be the technology or the service. It should be the business objective. As Couto explained, organizations need to begin by defining what success looks like and then identifying where they can create the greatest impact. That could mean examining specific labor categories, expanding into multiple workforce areas, adding embedded recruitment resources, launching an RPO program, strengthening an early talent strategy, or implementing an MSP that brings multiple elements together.

This strategy-first approach matters because every organization arrives with a different workforce environment. Some may already have sophisticated internal technology and established workflows. Others may have adopted new AI tools without fully understanding how those technologies fit into their broader ecosystem.

The role of services is therefore changing, noted Couto. Services can increasingly act as the connective layer between people, process, data, and technology. Rather than simply executing transactions or supplying talent, service providers can help organizations understand their current environment, identify gaps, determine where technology can create value, and build a phased strategy for improvement. That creates a more flexible model for workforce transformation. Couto emphasized that an organization does not necessarily need to overhaul every component of its workforce strategy at once. It can identify a high-impact area, create measurable results, and then expand into adjacent areas as the operating model matures.

This is particularly important as workforce strategies become more complex. Procurement, HR, talent acquisition, and business leaders increasingly need to coordinate around the same workforce objectives. They must understand supplier performance, talent availability, workforce costs, compliance, technology capabilities, and the employee and worker experience. Technology can provide important capabilities, said Couto, but technology alone cannot determine the right operating model.

That is why workforce orchestration is becoming increasingly relevant. The objective is not simply to deploy more tools or add more services. It is to connect the right capabilities around clearly defined business outcomes.

Couto shared that the organizations that make the greatest progress may not be those with the most technology or the largest number of workforce programs. They may be the organizations that understand how their workforce ecosystem fits together and can continuously adjust it as business needs change. The future of workforce management will require more than talent acquisition, staffing, or technology in isolation. It will require orchestration across all three.

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Introducing a New Subscription Model

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The Future of Contingent Workforce Management Is Orchestration

The contingent workforce has become too important to manage as a collection of isolated transactions. Organizations are balancing fluctuating demand, specialized skills, constrained budgets, supplier relationships, compliance requirements, and growing expectations around workforce flexibility. As a result, contingent workforce leaders are increasingly being asked to do more than fill openings. They are being asked to orchestrate talent, technology, suppliers, and business requirements around broader workforce outcomes.

That shift was a central theme during a recent Future of Work Exchange (FOWX) Podcast, featuring Cristin Monnich, Head of Services for Worksuite. Monnich highlighted a fundamental change in how organizations should think about external talent: not simply as labor to procure when internal capacity falls short, but as a strategic source of skills, relationships, flexibility, and competitive advantage.

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Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

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Beyond “When in Doubt, Use EOR”: A Smarter Approach to Worker Classification

Worker classification has become one of the more complex challenges facing organizations that rely on independent contractors, freelancers, and other forms of contingent talent. Shifting regulations, varying state requirements, and high-profile misclassification cases have created an environment where companies can be tempted to take the safest-looking path: classify more workers as employees or use an Employer of Record (EOR) model whenever there is uncertainty. However, during a recent Future of Work Exchange (FOWX) Podcast, Cristin Monnich, Head of Services for Worksuite, explained that excessive caution can create its own costs and talent risks.

Compliance Requires More Than Choosing the Safest Option

The fundamental challenge is determining how a worker should actually be classified. An independent contractor operating as an independent business is fundamentally different from an individual who functions as part of a company’s internal workforce. Treating those two situations the same can create problems for both the organization and the worker. Monnich argues that organizations need to become more intentional about understanding the distinction between an EOR and an Agent of Record (AOR) model. An AOR can be appropriate when an individual is legitimately operating as an independent business, while an EOR is designed for situations where a worker is functioning more like an employee. Forcing an independent worker into an employee structure can create additional costs and potentially cause the organization to lose valuable talent.

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Introducing a New Subscription Model

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The Rise of the Agile, Skills-Based Workforce

Organizations are reimaging workforce talent. When one thinks about the traditional boundaries between full-time and extended employees, the rigidity that once existed is beginning to fade. Enterprises now have access to a more dynamic and flexible workforce. Whether it’s independent contractors, gig workers, or project-based professionals, such contributors are now central to workforce strategy and how work gets done. Continuing with his insights from last week’s article, Derek Sanders, chief revenue officer for Opptly, dives into the future of talent and intelligent engagement.

As marketplace demands change, organizations need access to specialized skills and the ability to scale. Concurrently, more professionals are choosing flexibility and engagement with multiple organizations. The result is a more fluid and agile workforce, but with added complexity. Enterprises can resolve this issue using direct sourcing to connect with candidates, aligning their skills with available roles. Access to a pipeline of candidates delivers faster hiring, cost savings, and stronger candidate engagement. However, organizations must avoid relying too much on direct sourcing for cost reduction rather than value. It is about creating meaningful engagement with talent through technology, strategy, and ongoing engagement. Direct sourcing is about talent curation and relationship maintenance, not simply a transactional process.

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Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

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AI Hype to Real Outcomes in Workforce Technology

The hype around artificial intelligence in workforce technology is now shifting to practical applications. The conversation around AI is now about “how” rather than “when.” Those deeper questions focus on the measurable value AI can deliver to the enterprise. Derek Sanders, chief revenue officer for Opptly, provided further insights into the evolution of AI in talent technology and the emergence of skills-based intelligence during a recent Future of Work Exchange Podcast.

In many companies, AI is becoming an operational foundation. We now expect AI to be used in process workflows, such as talent acquisition and talent management, and tied to specific business outcomes. Yet some companies continue to struggle to gain clarity on use cases, whether that’s improving hiring efficiency, reducing cycle times, or enhancing talent quality. Sanders explained that the focus of AI is now on solving real problems rather than showcasing features. It is a critical turning point, he said, particularly in talent and workforce management, where complexity has historically limited scalability.

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Introducing a New Subscription Model

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AI, Direct Sourcing, and the Human Future of Workforce Solutions

Conversations about the future of workforce solutions increasingly circle around two themes: artificial intelligence and direct sourcing. Yet beneath the buzzwords lies a more nuanced reality. The evolution of MSP and contingent workforce strategies is not about replacing people with technology, but about using new tools to enhance how organizations find and manage talent. We continue with insights from a recent discussion between FOWX’s Christopher Dwyer and Denise Stalker, SVP, Managed Services for TalentProcure.

Despite the Tech, Humanization Is Still at the Heart of Workforce Solutions

AI is now present in many parts of the talent lifecycle. Skills matching, resume screening, chat based candidate engagement, and onboarding automation are becoming more common. Still, adoption is uneven. Only a small share of enterprises consider themselves true AI leaders. Many are piloting tools, running limited experiments, or trying to understand where AI fits in their workflows.

Generational dynamics influence this adoption. Younger workers who grew up with digital tools are often comfortable interacting with automated systems. Receiving a text from a bot about a job opportunity can feel normal to them. More experienced workers may be skeptical or prefer human interaction. This creates a transition period where organizations must design experiences that serve multiple comfort levels.

AI as an enabler. From an MSP perspective, AI is best viewed as an enabler. It can streamline onboarding, accelerate screening, and improve data visibility. It can reduce administrative burden and free program teams to focus on higher-value activities such as stakeholder engagement and supplier strategy. What it does not do is eliminate the need for human judgment. Workforce management still involves nuance, context, and relationship management that algorithms alone cannot handle.

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Introducing a New Subscription Model

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The Mid-Market Moment and the Evolution of CWM

The contingent workforce landscape is entering a new phase of maturity, and one of the most important developments is happening in a segment that once received far less attention. Mid-market organizations are rapidly becoming a focal point for managed service providers (MSPs) and workforce solutions leaders. This was a recent topic of discussion between FOWX’s Christopher Dwyer and Denise Stalker, SVP, Managed Services for TalentProcure.

For years, the spotlight stayed on large enterprise programs with massive spend and global scale. Today, mid-sized businesses are stepping forward with similar needs for structure, visibility, and strategic workforce management. This shift reflects how the world of work has grown more complex. Even organizations with 25 to 50 million dollars in contingent workforce spend face regulatory pressures, compliance demands, and cost controls that rival those of much larger enterprises. They require reporting, governance, and risk mitigation. They also want savings and efficiency. The difference is that many mid-market firms do not have deep internal teams dedicated to contingent labor. Often, one HR or procurement leader is juggling multiple responsibilities. That reality creates both a challenge and an opportunity.

MSPs that focus on the mid-market recognize that these programs require a high-touch model. Smaller clients do not want smaller service levels. They expect the same care, responsiveness, and expertise that a global enterprise would receive. In many cases, they need more guidance because they lack internal subject matter experts. Regulatory updates, classification rules, and process design are not simple areas to master without support. A strong MSP can fill those gaps and act as an advisor rather than just a program administrator.

The rest of this article is available by subscription only.

Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

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Skills, Systems, and Strategy: How AI Is Redefining the Future of Talent Acquisition

In a wide-ranging conversation on the Future of Work Exchange podcast, Lori Hock, CEO of Opptly, brings a practitioner’s perspective to where talent acquisition is headed, exploring how direct sourcing is evolving, how AI is reshaping workforce strategies, and why human judgment will remain essential as technology accelerates, all while offering a forward-looking view of what 2026 holds for talent and workforce leaders based on her extensive experience across staffing, MSP, and RPO models.

The talent industry has spent years discussing transformation, yet true structural change has often lagged behind the conversation. Artificial intelligence (AI) is now forcing that change, not through incremental efficiency gains, but by challenging the underlying operating models that govern how organizations find, engage, and deploy talent. At the center of this shift is a growing recognition that skills, not job titles or worker classifications, must become the primary currency of work.

AI is accelerating this transition by making skills visible, measurable, and actionable at scale. Historically, skills-based hiring was constrained by incomplete data, inconsistent taxonomies, and manual processes that limited its practical application. Today, AI enables the creation of living skills frameworks that reflect real-time market demand and evolve continuously. This capability is not a feature. It is a foundational requirement for modern talent strategy.

A skills taxonomy is only valuable if it drives decisions. AI makes this possible by connecting skills data to sourcing, matching, and workforce planning in ways previously unattainable. However, organizations must move beyond the excitement of creating taxonomies and focus on the harder question of how those insights are operationalized. Skills-based hiring is not a standalone process. It is an operating model that reshapes how work is designed and how talent is deployed.

Total Talent and the Mindset of Ecosystems

This shift has profound implications for the concept of total talent. For years, total talent management has been discussed as an aspirational framework, often dismissed as too complex to execute. AI is changing that calculus. By acting as an intelligence layer that evaluates skills independent of worker classification, AI enables organizations to connect work to talent across full-time, contingent, and independent labor pools. Systems of record no longer define opportunity. Skills do.

This evolution aligns with broader trends toward project-based and skills-focused work. As AI reduces friction in matching talent to tasks, organizations gain the ability to assemble teams dynamically based on capability rather than headcount models. This flexibility is becoming essential in a labor market defined by rapid change and uneven demand. It also creates new expectations for talent leaders, who must now think in terms of ecosystems rather than pipelines.

At the same time, the expansion of AI raises legitimate concerns around bias, compliance, and trust. These issues cannot be treated as afterthoughts. Bias auditing, transparency, and governance are becoming table stakes for any AI-enabled talent solution. Organizations that fail to address these requirements will face increasing scrutiny from regulators, employees, and candidates alike. Responsible AI is not just a legal necessity. It is a strategic differentiator.

AI Amplifies Broken Workflows

One of the most overlooked prerequisites for effective AI adoption is process maturity. AI does not fix broken workflows. It amplifies them. Before organizations embed AI across recruiting and talent processes, they must ensure that their underlying business processes are current, intentional, and aligned with how work actually gets done. This requires a pause that many organizations are reluctant to take, but it is essential for long-term success.

Once that foundation is in place, AI can automate large portions of the front end of recruiting. Screening, matching, scheduling, and initial engagement are all becoming increasingly autonomous. This automation does not eliminate the human role. It elevates it. Talent professionals are freed to focus on candidate experience, relationship management, and strategic workforce planning. The result is a more human talent function, not a less human one.

Leadership plays a critical role in navigating this transition. Skills-based hiring and AI-driven talent models require tone at the top. Leaders must articulate not only what is changing, but why it is changing and how employees fit into the future state. Without that clarity, uncertainty fills the gap. People create their own narratives, and those narratives are rarely optimistic. Transparency and intentional communication are essential to maintaining trust.

Looking toward 2026, the convergence of AI, skills intelligence, and total talent models represents one of the most significant shifts the industry has ever experienced. This is not a matter of adopting new tools. It is about redefining how organizations think about work, talent, and value creation. Companies that embrace this shift thoughtfully will move faster, adapt better, and attract talent more effectively. Those that hesitate risk falling behind in ways that will be difficult to recover from. The future of talent is not defined solely by technology. It is powered by AI, but shaped by people who are willing to lead through change with clarity, courage, and conviction.

Access the full podcast here: https://futureofworkexchange.com/2025/12/23/the-future-of-work-exchange-podcast-episode-813-a-conversation-with-lori-hock-ceo-of-opptly/.

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