Artificial Intelligence has emerged as a pivotal instrument for enhancing operational efficiencies and automating mundane tasks. However, it has simultaneously complicated the job-seeking process for candidates and recruiters amidst a fiercely competitive labor landscape.
Job seekers are attempting to circumvent AI filters, while recruiters are inundated with an overwhelming influx of applications, resulting in a growing trend of ‘ghost jobs’ being posted by companies.
This conundrum has given rise to what Daniel Chait, CEO of the hiring platform Greenhouse, terms an authenticity crisis.
“This is the first time I can remember where both sides were unhappy,” he stated in an interview with Fortune.
Employers lament the difficulties in making hires due to the sheer volume of applications, making it challenging to identify suitable candidates.
Conversely, job seekers express frustration, noting that while applying for positions has never been easier, securing employment remains increasingly elusive.
The 2025 Greenhouse AI in Hiring Report, shared with Fortune and released on Tuesday, reveals an alarming statistic: just 8% of job seekers perceive AI algorithms that filter initial applications as being fairer.
Among the 1,200 U.S. job seekers surveyed, nearly half reported a decline in their trust in the hiring process over the past year, a sentiment that rose to 62% among entry-level workers of the U.S. Gen Z demographic.
Of the respondents who expressed diminished trust, 42% directly attribute their concerns to AI. Additionally, more than one-third harbor the belief that bias has now shifted from human recruiters to algorithms.
Nonetheless, the report also uncovers that nearly half of job seekers this year are submitting more applications, a trend fueled by AI that Chait has termed an “AI doom loop.”
“Trust is at an unprecedented low for both job seekers and recruiters,” he remarked.
Where AI Impacts Negatively
In the past year, the number of applications submitted via LinkedIn has surged by over 45%, partially attributable to AI tools, according to The New York Times. In June, the platform recorded an astonishing average of 11,000 applications per minute.
Seventy-five percent of U.S. job seekers leverage AI to refine their applications, with 87% asserting the importance of transparency from employers regarding their own use of AI—a facet that often remains unaddressed, as outlined in the report.
However, as job seekers increasingly harness AI to customize their applications, the unintended consequence, as articulated by Chait, is that these tools generate homogenous cover letters and resumes. This results in candidates becoming indistinguishable.
“One finds it nearly impossible to differentiate between candidates,” Chait lamented.
Disillusionment Among Job Seekers
The swift proliferation of AI tools among job applicants is primarily a reflection of longstanding frustrations surrounding recruitment processes, remarked Paddy Lambros, CEO of Dex, an AI career agent technology firm.
Applicant fatigue is evident in social media discourse, with numerous posts advising job seekers on methods to manipulate AI filters commonly employed by applicant tracking systems, he noted.
“If every application appears as though it will go unread, then why wouldn’t one deploy AI to disseminate applications en masse?” Lambros queried.
Yet, he cautioned that AI tools seldom aid applicants beyond the initial screening stage.
During his previous tenure as a talent director at the London-based venture capital firm Atomico, Lambros observed that his team was unexpectedly inundated with four to five times the typical volume of applications within a month.
Unfortunately, the overwhelming majority of submitted CVs were simplistic and nearly identical, often generated by AI crafting them from the job descriptions rather than reflecting individual candidates.
This inundation complicated the assessment of a candidate’s genuine suitability. Moreover, many applicants arrived unprepared for interviews, often lacking a fundamental understanding of the prospective employer’s operations, as they employed a “spray and pray” approach by distributing thousands of applications daily.
Greenhouse’s report highlights the broad scope of these challenges, indicating that 65% of U.S. hiring managers have caught applicants engaging in deceptive practices using AI, such as reading from generated scripts, embedding prompts in resumes to bypass initial screenings, or even presenting themselves as deepfakes.
While U.S. job seekers may perceive AI as a means of leveling the playing field—especially as companies increasingly adopt AI-driven filtering methods—74% of hiring managers indicate heightened apprehension regarding fraud compared to the previous year.
“I can certainly empathize with the urge for candidates to utilize AI tools,” Lambros stated. “However, I remain unconvinced of their efficacy.”
Demographics of AI Usage in Applications
According to Greenhouse’s report, 41% of U.S. job seekers admit to using prompt injections—hidden text designed to bypass AI filtering mechanisms. Among those who refrain from this practice, over half are contemplating its use.
The report further reveals that this tactic is particularly prevalent among candidates in the IT sector at 65% and in banking or finance at 54%.
As these strategies proliferate, so too does the integration of AI within the hiring process, with over half of candidates encountering AI-led interviews that render the experience more impersonal.
“AI deployment in preliminary interviews is fundamentally disrespectful and inhumane,” Lambros declared. “Being informed that a human interaction is deemed unnecessary sends a disheartening message.”
Harnessing AI for Beneficial Outcomes
Nevertheless, Lambros asserts that AI in hiring can have its merits, provided it is executed effectively. Leveraging AI to assist candidates in identifying suitable job opportunities—rather than sifting aimlessly through every available listing—is a commendable application of this technology.
His company’s AI solutions help align candidates with job openings that reflect their aspirations and professional objectives, functioning more as a career coach.
“This represents the future trajectory of hiring; it is less about mere pipelines and more about precise matchmaking,” Lambros indicated.
Nonetheless, Chait of Greenhouse emphasizes that a paradigm shift is required, advocating for the reintegration of human elements into the hiring process.
“It is imperative to explore improved methodologies that genuinely illuminate the interests and significance underlying job applications and postings,” he concluded.
Source link: Fortune.com.
