Job seekers use AI for cover letters; employers turn to AI-led interviews — both are equally miserable, here’s why – The Times of India

Turned to artificial intelligence (AI) to help you stand out during the job process, but got rejected in the first round? Or are you a hiring manager who relied on AI to frisk through applications to select the best candidate, but ended up with not what you quite envisioned?The answer lies in the approach itself. Relying on artificial intelliegnce for job application might be doing you more harm than good.The growing use of artificial intelligence in recruitment is reshaping how Americans search for work, just as the country’s labour market shows signs of slowing. From automated interviews to AI-written cover letters, technology is now a part of almost every stage of the hiring process. But is it working? In 2025, more than half of organisations surveyed by the Society for Human Resource Management reported using AI tools to recruit workers. At the same time, almost one-third of ChatGPT users turned to the OpenAI chatbot for help with job applications. Yet recent research indicates that candidates who rely on AI during the application process are actually less likely to be hired, even as employers struggle to cope with a flood of applications. “The ability (for companies) to select the best worker today may be worse due to AI,” Anais Galdin, a researcher at Dartmouth told CNN Business. Galdin and Jesse Silbert of Princeton University examined tens of thousands of cover letters submitted on Freelancer.com, a job listing platform and found that after the launch of ChatGPT in 2022, cover letters became longer and more polished. However, employers placed less importance on them, making it harder to distinguish strong candidates from the wider pool. As a result, hiring rates dropped, and so did average starting wages, CNN reported. “If we do nothing to make information flow better between workers and firms, then we might have an outcome that looks something like this,” Silbert said, referring to the study’s findings.

A negative cycle

As application volumes rise, companies are increasingly automating interviews as well.According to a survey by recruitment software firm Greenhouse conducted in October, 54% of US job seekers said they had taken part in an AI-led interview. While virtual interviews became common during the pandemic in 2020, many employers now use AI systems to conduct interviews, without necessarily removing subjectivity from hiring decisions. “Algorithms can copy and even magnify human biases,” said Djurre Holtrop, a researcher who studies the use of asynchronous video interviews, algorithms and large language models in hiring.“Every developer needs to be wary of that,” CNN cited the expert. Daniel Chait, chief executive of Greenhouse, said the growing use of AI by both applicants and employers has created a negative cycle. “Both sides are saying, ‘This is impossible, it’s not working, it’s getting worse,’” Chait told CNN.

What’s next?

Despite these concerns, adoption of the technology continues with one estimate projecting that the market for recruitment technology will grow to $3.1 billion by the end of this year. At the same time, resistance is mounting from lawmakers, labour groups and workers worried about discrimination. Liz Shuler, president of the AFL-CIO labour union, described AI-driven hiring as “unacceptable”. “AI systems rob workers of opportunities they’re qualified for based on criteria as arbitrary as names, zip codes, or even how often they smile,” Shuler said in a statement to CNN. Several US states, including California, Colorado and Illinois, are introducing new laws and regulations aimed at setting standards for the use of AI in hiring. However, a recent executive order signed by US President Donald Trump raised questions about the future of state-level oversight. Samuel Mitchell, a Chicago-based employment lawyer, said the order does not “preempt” state law but adds to the “ongoing uncertainty” around regulation. He added that existing anti-discrimination laws still apply, even when companies use AI systems, and legal challenges are already emerging. In a case supported by the American Civil Liberties Union, a deaf woman is suing HireVue, an AI-powered recruitment company, alleging that an automated interview failed to meet legal accessibility standards. HireVue denied the claim, telling CNN that its technology reduces bias through a “foundation of validated behavioral science”. Even with these challenges, more and more AI is getting hiring access. New tools have made resume screening more sophisticated, potentially helping some candidates who may have been overlooked. But for those who value personal interaction, the shift has been unsettling. Jared Looper, an IT project manager in Salt Lake City, Utah, who previously worked as a recruiter, recently underwent an AI-led interview during his job search. He described the experience as “cold”, and said he initially hung up when contacted by the automated system. Looper said he worries about job seekers who have yet to adapt to a hiring environment where appealing to algorithms has become essential. “Some great people are going to be left behind.”