AI Shaping the Future of Contingent Workforce Management

Expert insights on how AI is redefining contingent workforce practices

As part of the ProcureCon Total Talent event in Berlin, Pontoon’s VP of Products and Innovation – Christian Lortz – cohosted a workshop exploring the role of AI in contingent workforce management. Following the event, we sat down with Christian to recap key insights from the session and further explore how AI is shaping the future of hiring, workforce strategies, and talent management.

Q: How have workforce dynamics evolved in recent years, and what role does AI play in adapting to these changes?

CL: Workforce dynamics have changed dramatically in recent years. Remote and hybrid work models are now common, but they come with risks like lower engagement and higher attrition. AI can help by providing clearer, more engaging communication and analysing workforce trends to flag potential issues before they escalate.

Another major shift is the move from rigid job roles to skills-based hiring. More businesses now focus on identifying the right skills rather than simply filling a position. AI plays a crucial role here by measuring skills, matching candidates efficiently, and even supporting upskilling through AI-powered learning platforms.

We’re also seeing an increase in gig and freelance work, with many companies adopting total talent strategies. AI can help businesses find the right resources, automate routine tasks like onboarding and scheduling, and ensure that contingent workers remain productive and engaged.

Q: What are the biggest challenges businesses face in contingent workforce hiring and management, and how can AI help solve them?

CL: One of the biggest challenges is hiring for skills rather than just roles. Businesses need to mix and match contingent, Statement of Work (SOW), and permanent workers, which can be complex. AI helps by streamlining talent acquisition, ensuring better skill matching, and automating some of the more administrative processes.

Another challenge is integrating contingent workers with permanent teams. AI-driven collaboration tools and workflow automation can ensure seamless communication and alignment. Compliance and data security are also significant concerns, but AI-powered solutions can help businesses navigate these challenges while safeguarding sensitive data.

Q: What were the main concerns about adopting AI for workforce management raised during your workshop, and how can they be addressed?

CL: The biggest concern I hear is that many organisations don’t know how to experiment with AI in a way that builds confidence among stakeholders. People worry about AI bias, data security, and the risk of data leakage.

The key to overcoming this is education. Businesses need to understand what safe AI adoption looks like. Starting small is crucial—rather than trying to overhaul their entire workforce strategy with AI overnight, they should begin with a focused use case, using mock-up data where possible, and ensure transparency in AI decision-making.

Q: If a company is just starting to explore AI for workforce management, what’s your top piece of advice?

CL: One mistake I often see is companies designing AI solutions as if they need to support millions of users right away. That can slow everything down. Instead, focus on solving an immediate problem first, refine the solution, and then scale once you’re confident it’s ready for a larger audience.

Q: How do you see AI transforming contingent workforce management in the next five years?

CL: I have no doubt that AI will become integral to contingent workforce management. We’ll see AI streamlining everything from talent attraction to strategic workforce planning and scenario simulations.

AI will make workforce decisions more data-driven and predictive, helping companies anticipate hiring needs, manage talent pipelines more effectively, and even personalise learning and development for contingent workers.

Compliance and risk management will also be heavily automated with AI, reducing the administrative burden on HR teams and ensuring companies remain compliant with ever-changing regulations.