Researchers and industry leaders warn that the growing use of AI-written applications and automated interviews is degrading hiring outcomes, lowering wages, and frustrating both sides of the job market.
By yourNEWS Media Newsroom
Artificial intelligence is rapidly reshaping how Americans apply for jobs and how companies screen candidates, but new research suggests the technology may be undermining hiring outcomes rather than improving them.
More than half of organizations surveyed by the Society for Human Resource Management now rely on AI in recruiting, according to a recent survey. At the same time, roughly one-third of ChatGPT users report having relied on the OpenAI chatbot to assist with job searches, from drafting résumés to writing cover letters. While both trends are often framed as efficiency gains, emerging evidence indicates they may be producing the opposite effect.
A study by Anaïs Galdin of Dartmouth and Jesse Silbert of Princeton analyzed tens of thousands of cover letters submitted on Freelancer.com and found that after the release of ChatGPT in 2022, applications became longer and more polished. However, employers responded by discounting cover letters altogether, reducing their usefulness as a screening tool. The researchers found that hiring rates declined and average starting wages fell as employers struggled to distinguish qualified candidates from the growing volume of well-written submissions.
As application numbers have surged, companies have increasingly turned to automated interviews. A survey conducted by recruiting software firm Greenhouse in October revealed that 54 percent of U.S. job seekers have already experienced an AI-led interview. While virtual interviews expanded during the pandemic, replacing human interviewers with algorithm-driven prompts has not eliminated subjectivity or bias from the process.
Daniel Chait, chief executive officer of Greenhouse, described the current system as a “doom loop,” in which both applicants and employers feel trapped in a process that continues to deteriorate. “Both sides are saying, ‘This is impossible, it’s not working, it’s getting worse,’” Chait said.
As AI-driven hiring tools proliferate, states including California, Colorado, and Illinois have begun adopting laws and standards governing their use. Although a recent executive order signed by President Donald Trump has raised concerns about the durability of state-level AI regulations, existing anti-discrimination laws still apply to hiring decisions, even when they are made or influenced by algorithms. Legal challenges are already emerging, including lawsuits alleging that automated interview platforms fail to meet accessibility requirements.
For job seekers, adapting to AI-dominated hiring systems has become an additional barrier. Jared Looper, an IT project manager in Salt Lake City who previously worked as a recruiter, described his experience with an AI interviewer as “cold” and said he worries about applicants who lack the skills or awareness needed to navigate algorithmic screening.
“Some great people are going to be left behind,” Looper said.
Researchers and hiring executives say the findings highlight a growing disconnect between the promise of AI-powered hiring and its real-world impact, as technology increasingly mediates the job market without helping the right people connect with the right jobs.
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