The global job market is facing a new challenge. More and more job seekers are resorting to using “paid AI tools” to mass apply for jobs due to the lack of responses they receive. On the other hand, companies, overwhelmed by the surge in applications and inundated with AI-generated resumes, are turning to AI to screen talents. Executives in the business sector are warning that finding the right talent now is like finding a needle in a haystack.
According to Daniel Chait, CEO of the recruitment system provider Greenhouse, the AI-generated resumes make it difficult for companies to determine which candidates are genuinely interested and meet the requirements. With job seekers able to use AI tools to mass apply for jobs for just $20, companies are starting to use AI to delete highly similar job applications, making the entire recruitment process less efficient, creating an “AI doom loop.”
Chait told Fortune magazine, “This is the first time both job seekers and companies are dissatisfied, and the market is unable to meet the needs of either side.” “Job seekers keep sending out resumes, but it’s like throwing them into a ‘black hole’ with no response. Even if they send out more applications, they struggle to make any progress.”
Chait mentioned that an increasing number of job seekers are using AI tools to find jobs. “There are software on Google claiming to automatically apply for every job opening on the Greenhouse platform using AI. Some people buy these tools for about $20, and then they can freely send job applications to a large number of job openings, as many as they want.”
However, on the receiving end, recruiters are busy handling the influx of job applications. Currently, the Greenhouse platform has 175,000 job openings, with an average of about 254 job applications per opening, leading to a 412% increase in the number of applications each recruiter needs to handle.
Recruiters often receive hundreds or even thousands of applications within just one or two days, making it impossible for the recruitment team to digest them in a timely manner. Moreover, a large portion of the resumes are AI-generated, leading to content that is becoming “cookie-cutter,” making it difficult for recruiters to distinguish between candidates genuinely applying and those just using AI tools to mass apply overnight.
Consequently, companies have had to rely on AI to process job applications, while those continuously overlooked job seekers must continue to submit more resumes. Chait said, “We call this the ‘AI doom loop,’ where each party uses AI to deal with their own struggles, but the result only makes the entire recruiting environment worse.”
Steve Preston, CEO of Goodwill, warned that with AI impacting entry-level positions, more young people may face challenges in job hunting in the future. For companies, finding the right talent from a massive pool of applicants has become as difficult as finding a needle in a haystack.
Arvind Jain, former Google engineer and current founder of the $720 million AI startup Glean, stated that the company receives thousands of job applications every day but still struggles to find the needed talents. Outstanding candidates are snatched up by other companies even before he completes screening for one-fifth of the resumes.
Jain said, “Students think finding a job is hard, but we also find it equally challenging to find the right talent.”
Even Hollywood actress Anne Hathaway experienced a similar issue. After hiring new staff, she received multiple thank-you letters written by ChatGPT. She reminded job seekers, “If you think you can deceive others, you may be exposing yourself.”
This article references reports from Fortune magazine and industry trends media The Cryptonomist.