RMT Labs: AI for recruitment

[This article is part of a content series developed in collaboration with FEDIL, showcasing how artificial intelligence is contributing to the digital transformation of Luxembourg’s economy.]

Established in 2022 in Luxembourg, RMT Labs seeks to redefine recruitment standards by leveraging artificial intelligence solutions. The goal is to help companies find the right talent and optimise their technology strategies.

The platform developed by the company is designed to streamline recruitment processes by reducing inefficiencies, minimising bias and ensuring candidates are matched to their true potential.

One observation: long and costly processes

"The starting point for our thinking comes from a very simple frustration: seeing that the tools meant to help recruiters have become, over time, part of the problem," says Daniel Stoica, founder and CEO of RMT Labs. While working as a recruiter himself during and after the COVID period, he realised the growing complexity of the situation, often having to contact hundreds of candidates just to get a single real 'match'. Not to mention that these candidates are subject to a constant flow of messages that are not necessarily related to their skills or ambitions.

"Since the post-COVID period, the general turnover of employees has increased, along with the possibilities of remote working potentially opening up each position to a global market," summarises Mr Stoica, who notes an average time to hire of around 68 days for ICT-related positions. This caused overheating in understaffed teams and a slowdown in projects.

To rely on a different recruitment infrastructure, with an AI that really understands the language of recruitment. Daniel Stoica, RMT Labs

At the same time, processes via “traditional” recruiters and head hunters remain expensive (with fees of around 25% of annual salary) and not very automated. The introduction of new tools based on artificial intelligence has not, paradoxically, immediately improved the situation, due to data privacy considerations. Between long recruitment cycles, high costs, poor feedback for both recruiters and candidates, and a growing risk of non-compliance, everything was in place for a profound review of current practices.

"I was convinced that it was time to rely on a different recruitment infrastructure, with an AI that really understands the language of recruitment, focuses on people and skills rather than on keywords, and is reliable by design."

The solution: a single, interactive platform

These considerations gave birth to the concept of a new interactive artificial intelligence recruitment platform, Smooth Hire, which combines an applicant tracking system, a candidate relationship manager and a light layer of HR information in a single environment. "The platform is based on a broad, proprietary language model focused on recruitment, hosted and trained in the European Union," says Mr Stoica.

In concrete terms, recruiters focus on the definition and description of positions, and the platform is responsible for collecting applications, extracting structured information from CVs and validating key data to semantically associate profiles with open positions. On the candidate side, an AI career manager can also help users build and improve their resume, understand their suitability for certain roles and plan their next career steps.

"Across the architecture, the requirements of the GDPR and the AI Act are considered fundamental design constraints. The solution includes audit trails, explainability, bias checks and data residency in the EU by default," summarises Mr Stoica.

Processing times reduced by 83%

In the end, the AI-based approach brings measurable improvements in terms of efficiency, cost and quality of recruitment. The hiring time for ICT positions has been reduced to about 12 days, which is an improvement of about 83%. "Manual and repetitive tasks such as CV checking, first-level grading and initial communication are reduced by up to 70%." This allows recruiters to go back to focusing more time on more positions. The service fee is reduced to 50% of the usual agency fee level.

These efficiency gains are reflected in the company's results: RMT Labs, which works with 14 customers in 10 countries, has doubled revenues year-on-year and achieved an average monthly recurring revenue of €100,000 in the first half of 2025.

€4 million in investments planned

"We see the current platform as a solid foundation for the next phase of development," says Mr Stoica. Over the next 24 months, the company plans to invest around €4 million in research and innovation to finalise a full SaaS version of the solution. "We will also further train our proprietary recruitment language model on the European infrastructure, in collaboration with partners such as the Luxembourg Institute of Science and Technology (LIST) and LuxProvide, via the Meluxina supercomputer."

At the same time, the company is working to strengthen trusted AI features. This includes more advanced bias tracking, richer explainability for each recommendation and ESG-oriented metrics integrated directly into the recruitment process.

"The long-term goal is to evolve from a rapid recruitment engine to a global, AI-compliant co-pilot for career and talent decisions, supporting both employers and candidates."