New Delhi, Oct. 31 -- Recruitment companies are changing the way they work as artificial intelligence (AI) tools take over functions such as resume sourcing, background checks, skillset matching, and even conduct the first couple of rounds of candidate interviews.

The result? Staffing firms-typically into temporary hiring-are moving towards mandates that need candidates with complex skillsets and more years of work experience. To retain clients, some have created their own hiring tools to offer faster services to larger groups of clients, while others are outsourcing the initial phase of their hiring to AI platforms.

However, there is gnawing worry that clients will ask for a drop in billing rates as companies realize that candidate sou...