Have Small Businesses Rethinking Hiring
Many job-seekers are using artificial intelligence to write resumes and help with other aspects of applying for jobs. However, hiring managers are pushing back on these job-seekers—even though their organization may utilize AI to screen applicants, according to a new report by TopResume.
Nearly 20% of recruiters say they would reject a job candidate who used an AI-generated resume or cover letter, according to a survey of 600 U.S. hiring managers. And 14.5% of managers think candidates shouldn’t use AI at any stage of applying for a job.
AI and the job application and hiring processes have a complex relationship. Here’s what small businesses should know about how job candidates are using the technology and what hiring leaders think about it.
How job-seekers use AI for applications
More job applicants are using AI to draft resumes and cover letters because they believe algorithms, instead of people, are screening their resumes, according to the TopResume report.
About two-thirds of job candidates say they use AI when applying for jobs, including for resume and cover letter writing, interview practice, career guidance, and to perfect their headshots, according to the 2025 Market Trend Report by Career Group Companies.
That report also showed that nearly 40% said they believe AI both helps and hurts their job search.
Still, 65% of people are uncomfortable with companies using AI in recruiting and hiring, and 90% want them to be up front about how they utilize the technology for hiring, according to a separate ServiceNow survey.
While hiring managers believe applicants shouldn’t use AI, more than 60% of companies embrace AI tools as some part of their recruiting or hiring process.
What recruiters think about applicants using AI
More than a third (33.5%) of hiring managers said they can quickly detect resumes created with AI, often within just 20 seconds, according to the TopResume report.
While one in five would reject these resumes, another 20% said candidates relying on AI is a red flag. However, 52% of hiring managers said it’s acceptable to use AI for proofreading or support in drafting documents—but they believe the final product should be solely human-produced, reflecting the individual’s own words, skills, and effort.
Besides resume-writing, hiring managers are most concerned about job candidates using AI to help them answer job-interview questions—57% say tools like whispering bots or answer-generating apps should never be used during an interview, as it can hinder their ability to get a true assessment of the individual.
Overall, 14.5% of hiring managers said applicants shouldn’t use AI at any stage of the hiring process. More specifically, they consider it unacceptable during skills assessment (40.8%), for resume writing (30.3%), and for cover letters (25%).
Are companies using AI, too?
While hiring managers believe applicants shouldn’t use AI, more than 60% of companies embrace AI tools as some part of their recruiting or hiring process, according to TopResume.
About 20% use the technology for resume screening. Other AI uses include writing job advertisements, drafting interview questions, and automatically contacting candidates for interviews.
The bottom line, the report suggests, is that candidates will continue to use AI to apply for jobs. However, it could hurt their chances of landing a role—even though many hiring managers are also using the technology during the hiring process.
Source – https://www.uschamber.com/co/run/human-resources/hiring-ai-job-applications