Anaïs Galdin, a PhD researcher from Dartmouth, recently co-authored a thought-provoking study. It shows the ways in which large language models (LLMs) such as ChatGPT are changing the dynamics of applying for a particular job. The research analyzed cover letters attached to hundreds of thousands of job bids submitted on Freelancer.com. Perhaps more surprisingly, it discovered significant improvements in the quality and extensiveness of these documents since ChatGPT’s arrival in late 2022. Despite cover letters getting more quality, companies are reading them less and less. This significant change prompts a serious question—are hiring practices still effective in an artificial intelligence-enabled world?
ChatGPT has also caused would-be applicants to generate lengthier, more polished cover letters. Companies have begun to place less emphasis on these documents, which raises questions about their ability to identify the most suitable candidates. Galdin expressed her apprehensions, stating, “The ability (for companies) to select the best worker today may be worse due to AI.” This feeling reflects larger worries around AI’s impact on hiring practices.
More than half of organizations surveyed by the Society for Human Resource Management anticipate using AI for recruitment by 2025. This change marks an important continuation of a larger trend. Nearly one-third of ChatGPT users are asking the chatbot for assistance as they apply for jobs. Consequently, AI-based interviews and auto-generated cover letters are profoundly changing conventional hiring processes.
In a survey conducted by Greenhouse 54% of U.S. job seekers reported having gone through an AI-led interview. On the other side, employers are moving quickly to adopt AI technology. By the end of this year, the market for recruiting technology is expected to reach $3.1 billion. Share this story Jared Looper is an IT project manager and former public sector recruiter. Having experienced firsthand the battering ram nature of AI’s effect on hiring.
The move to quickly incorporate AI into recruitment hasn’t escaped the notice of labor advocates. Liz Shuler, president of the AFL-CIO labor union, called AI’s use in hiring “abhorrent.” She pointed out that the negative impacts of AI systems deprive qualified workers of opportunities. This occurs because of arbitrary criteria such as names, zip code, or even how often they smile. This creates profound ethical concerns regarding fairness and transparency in the hiring process.
Worries regarding bias in AI algorithms have become a hot topic. As experts such as Djurre Holtrop explain, without oversight and regulation, these systems risk replicating and even exacerbating human biases. The predictable impact of such biases would be harmful to both job seekers and employers. Daniel Chait, CEO of Greenhouse, summarized the escalating tension in the dilemma well. Ashe continued, “Everyone’s got their arms crossed, right? Both sides are saying, ‘This is impossible, it’s not working, it’s getting worse.”
In response to rising concerns over AI’s role in hiring practices, several states, including California, Colorado, and Illinois, are enacting new laws and regulations aimed at establishing standards for AI technology’s use in recruitment. These commonsense measures would help protect job seekers from unlawful discrimination and promote a more equitable hiring process.
A little-noticed executive order signed by President Donald Trump could make the long-term enforcement of these state-level regulations impossible. This recent evolution has sent shockwaves through the advocacy community. They strongly believe that without any oversight applied here, job-seekers will find it even more difficult to traverse the new automated job-seeker landscape.
Experts warn that unless more interventions are made to bridge these gaps and help workers find jobs where they can thrive, the employment landscape will continue to worsen. Jesse Silbert’s warning was unambiguous. He added, “If we don’t get better at allowing information to flow between workers and firms, we’re going to be in big trouble.”