AI Interviews and Auto-Cover Letters Transform Job Hunting as Labor Market Slows And perhaps not for the best. Over half of organizations surveyed by the Society for Human Resource Management utilized AI for recruitment in 2025. About one-third of ChatGPT users have turned to the OpenAI chatbot for job search assistance. Recent research shows that job seekers using AI are less likely to get hired. Companies are seeing a surge in applications. Anaïs Galdin stated, “AI may hinder companies’ ability to choose the best worker today,” referencing a study on the impact of large language models on cover letters. Galdin and co-author Jesse Silbert from Princeton examined cover letters from thousands of job applications on Freelancer.com.
After ChatGPT’s 2022 debut, letters became longer and better-written, yet companies began to value them less. It became tougher to identify qualified candidates, leading to a decline in hiring rates and average starting wages. “If we don’t improve information flow between workers and firms, we could end up with results like this,” said Silbert. Employers are now automating the interview process as applications pile up. In October, 54% of US job seekers surveyed by Greenhouse reported experiencing an AI-led interview. Virtual interviews surged in popularity during the 2020 pandemic. AI is asking the questions, but the process remains subjective.
“Algorithms can replicate and amplify human biases,” stated Djurre Holtrop. “All developers should take note.” Daniel Chait, cautioned that AI’s role in hiring—where applicants apply to numerous jobs using the tool and employees automate processes—has led to a “doom loop” that leaves everyone unhappy. “Everyone’s saying, ‘This is impossible, it’s failing, it’s getting worse,’” Chait told. Employers are adopting technology rapidly, with projections estimating the recruiting tech market will reach $3.1 billion by year-end. State lawmakers, labor groups, and workers are pushing back, fearing AI may discriminate against them.
Liz Shuler deems AI in hiring “unacceptable. AI systems deny qualified workers opportunities based on arbitrary factors like names, zip codes, or even how often they smile,” Shuler stated. California, Colorado, and Illinois are rolling out new laws to set standards for technology use in hiring and more. Trump’s new executive order could jeopardize state AI regulations. Samuel Mitchell stated that the order cannot override state law but contributes to the ongoing uncertainty regarding new tech regulations. He noted that current anti-discrimination laws still govern hiring, even with AI in use. Lawsuits are already rolling in. Deaf Woman Sues HireVue Over Inaccessible AI Interview. HireVue rejected the claim, stating that its technology aims to minimize bias using a “foundation of validated behavioral science.” AI hiring is overcoming hurdles and is here to stay. New AI advancements are transforming resume analysis, giving overlooked candidates a chance to shine. Yet, those seeking the “human touch” in hiring are still disappointed. Jared Looper, an IT project manager from Salt Lake City, Utah, started out as a recruiter. He faced an AI recruiter in his job search. He described the experience as “cold,” even hanging up during the initial contact from the program. Looper is concerned for those still struggling to adapt to a hiring process where AI skills are essential. “Great people will be left behind.”