The job search has changed more in the last few years than in the previous two decades. Artificial intelligence (AI) now sits at the center of how candidates find roles, apply, and get hired—making traditional outplacement services less effective unless they evolve.

For organizations supporting displaced employees, AI-enhanced outplacement is no longer a “nice to have.” It’s the new standard.

AI has become a core job search tool

Today’s job seekers are already using AI at scale. A recent survey found that 84% of workers say AI makes it easier to find job opportunities, while 68% use AI to write or improve resumes and 67% use it to customize cover letters.

Traditional outplacement, which offers some resume guides, cover letter templates, or one-on-one coaching time, focuses on consulting the individual on how to position themselves. This includes live resume or cover letter reviews, job search tools, and LinkedIn profile reviews, which are all critical to landing a candidate’s next career step.

What traditional outplacement doesn’t address are the efficiencies gained by leveraging AI in the background to enhance the job-seeking experience, not only in allowing individuals to locate more jobs in a timely manner but also in matching individuals to their best-fit roles.

Augmenting a traditional outplacement tool with AI helps candidates efficiently tailor their applications and align their experience to specific roles within minutes. For example, through AI, an individual can create a cover letter in seconds, tailored specifically to the role being applied for, taking the manual part out of the equation.

Employers are using AI, candidates must match it

On the employer side, 87% of companies now use AI in recruitment, particularly for resume screening and candidate shortlisting. Many Fortune 500 companies rely on automated systems to weed out candidates and find the individuals who match skill requirements before a human ever reviews an application. With this in mind, success for a job seeker increasingly depends on understanding how AI evaluates resumes, keywords, and career narratives.

AI improves hiring outcomes, when used correctly

The upside is clear: 51% of job seekers report getting more interviews after utilizing AI for curating questions based on the industry and role being applied for, and 50% say it helped them secure more job offers because they were prepared for questions that came up in the interview. The difference in successfully using AI isn’t access to AI, but rather knowing how to use it strategically and ethically.

With an AI augmented outplacement experience, customized interview questions can be created in minutes, based on the role being applied for. This better prepares the job seeker for the interview, which can mean the difference between landing a job or not.

What AI-enhanced outplacement looks like

Traditional outplacement models focus on resume reviews, one-on-one coaching, and job boards. These are all excellent tools, but don’t address the time spent creating and tailoring resumes, cover letters, and proper interview preparation above and beyond what is needed with individual coaching. AI-enhanced outplacement goes further by:

• Tailoring cover letters, assisting in formatting resumes, and helping with updating LinkedIn profiles when looking for a specific role
• Training candidates to work with, rather than against, applicant tracking systems by helping to ensure the right skills and requirements for each role are included in their resume to help them land an interview
• Providing real-time labor market insights, like industry research and current hot jobs to guide job targeting
• Teaching responsible AI use, ensuring authenticity and fairness
• Scaling personalized support, to ensure that every participant gets tailored guidance—not templates

The new standard for outplacement

As AI literacy becomes a baseline expectation in the job market, outplacement services must reflect how hiring actually works in the current environment. Programs that integrate AI tools with human coaching empower displaced employees to compete confidently, shorten time-to-reemployment, and improve outcomes for both individuals and employers. This helps the employer by keeping the individual focused on their next step and also builds goodwill as an individual works through the career transition, often helping the employer maintain a positive reputation within the market.

AI isn’t replacing outplacement—it’s redefining what effective outplacement looks like. Mercer's Workforce Transition Services provide AI-enhanced tools that change the game for displaced employees. Reach out today to learn more at 855-286-5302 or email surveys@mercer.com.

About the author

Crystyl Swanson, Commercial Strategist – Tech Industry

Crystyl has over 20 years of experience serving clients across a wide range of industries and leadership roles. In her current role as Commercial Strategist for the Technology Industry, Comptryx and Workforce Transitions for the North American market, she brings a new perspective and a wealth of knowledge and experience in the ever-evolving talent landscape.