The Transformative Impact of AI on Job Hunting: A Double-Edged Sword
As America’s labor market begins to slow, a wave of technological advancement is reshaping the way job seekers navigate the hiring landscape. With artificial intelligence (AI) taking the helm, processes such as interviews and cover letter submissions are significantly evolving, though not always for the better.
A New Era in Recruitment
A recent survey from the Society for Human Resource Management indicates that more than half of organizations employed AI to recruit workers in 2025. This surge in technology use mirrors a general trend: about a third of ChatGPT users are reportedly leveraging the AI tool to assist in their job searches. However, while these advancements promise efficiency, they may also create unforeseen complications.
The Paradox of AI in Hiring
Research has shown that job seekers who utilize AI tools during their application process are often at a disadvantage. Despite an increase in the volume of applications—putting pressure on hiring teams—initial findings suggest that the quality of hiring decisions may actually decline. Anaïs Galdin, a researcher from Dartmouth, explained, “The ability for companies to select the best worker today may be worse due to AI.” This paradox is raising alarms among both employers and applicants alike.
Cover Letters: A Quagmire
In exploring the effects of AI on job applications, Galdin and co-author Jesse Silbert from Princeton studied tens of thousands of cover letters on Freelancer.com. Their analysis revealed a curious trend: after the introduction of ChatGPT in 2022, cover letters became not only longer but also better-written. Strikingly, however, companies began to disregard them more frequently, complicating the evaluation process and resulting in a decrease in both hiring rates and initial salaries.
The Rise of AI Interviews
With companies flooded with applications, many are turning to automated interviews as a solution. According to a survey conducted by Greenhouse, 54% of U.S. job seekers participated in AI-led interviews. This trend, accelerated by the pandemic, suggests an increasing reliance on technology to streamline hiring. Nevertheless, the process remains inherently subjective, as AI can replicate—and even amplify—human biases. Researcher Djurre Holtrop warns, “Every developer needs to be wary of that.”
The Dreaded "Doom Loop"
As more candidates incorporate AI into their job applications and employers respond by automating their processes, a cycle of frustration is forming. Daniel Chait, CEO of Greenhouse, describes this scenario as a “doom loop,” where both job seekers and employers feel trapped in an ineffective system. Chait noted that many stakeholders are voicing dissatisfaction, saying, “This is impossible, it’s not working, it’s getting worse.”
Navigating Regulatory Challenges
Amidst this technological upheaval, there is growing concern among lawmakers and labor groups over potential discrimination in AI-led hiring processes. Liz Shuler, president of the AFL-CIO labor union, called the use of AI in hiring “unacceptable,” arguing that these systems can unjustly eliminate qualified candidates based on arbitrary criteria like names or zip codes. In response, states such as California and Illinois are implementing regulations to mitigate biases in AI hiring practices.
The Tug-of-War Between States and Federal Law
Recent executive orders have complicated matters further. For instance, a directive signed by former President Trump poses potential obstacles to state-level regulations aimed at governing AI use in hiring. Employment lawyer Samuel Mitchell noted that while existing anti-discrimination laws still apply, the new executive order adds a layer of uncertainty to the evolving legal landscape.
Legal Challenges and Victories
Litigations against companies utilizing AI for hiring have begun to surface. A notable case involves a deaf woman launching a lawsuit against HireVue, alleging that their automated interviewing system failed to meet accessibility standards. Though HireVue maintains that their technology is designed to reduce bias, public scrutiny is escalating regarding the ethical implications of AI in recruiting.
The Ongoing Duality of AI in Hiring
Despite its challenges, the use of AI in hiring seems poised for longevity. Proponents argue that ongoing advancements in AI technology could lead to innovative methods of resume evaluation, potentially benefiting candidates who may have been overlooked in traditional hiring processes.
The Human Touch in Hiring
However, the growing reliance on AI has left many yearning for the human touch that has traditionally characterized hiring. For example, Jared Looper, an IT project manager and former recruiter, describes his AI interview experience as “cold.” He worries about those who may not adapt to the new demands of AI-driven hiring, expressing concern that “some great people are going to be left behind.”
In this evolving landscape of recruitment, the balance between efficiency and fairness remains precarious. As job seekers and employers navigate this new reality together, the outcomes of these changes will heavily influence the future of work in America.
