RPO Partnerships Evolving Amid AI and Candidate Fraud, Report Finds

The Recruitment Process Outsourcing Association (RPOA), in collaboration with Lighthouse Research & Advisory, has released its latest 2026 RPO Buyer Trends Report, revealing evolving employer demands for recruitment process outsourcing partners. According to the annual study, employers are moving beyond simply filling positions and are now looking for partners who can navigate disruptions from artificial intelligence (AI), combat candidate fraud, and deliver demonstrable business outcomes.

The report, based on survey data from nearly 1,000 employers, indicates that the RPO model continues to show benefits. 69% of employers report a positive return on investment from their RPO partnerships, and 61% state that their hiring metrics have improved. However, most partnerships have not yet reached their full potential; only 23% of relationships are described as "transformational," the tier where the greatest measurable business impact is achieved.

Candidate fraud has emerged as a significant operational risk in recruitment processes. 64% of employers encounter candidate misrepresentation at least occasionally, and 58% want their RPO partner to assist with fraud and risk mitigation. Only 15% of employers can correctly identify all the ways candidates are utilizing AI within the hiring process.

The report also highlights employers' need for proof of AI's benefits. While over 75% of employers feel AI has reduced recruiter workload, only about 30% are confident in their ability to measure the ROI of their AI investments. Employers working with an RPO partner report this ROI significantly more clearly.

According to the findings, 58% of employers are considering switching providers or bringing talent acquisition back in-house, most frequently citing technology and automation (39%), quality of support (38%), and provider knowledge and reputation (33%) as reasons.