INDIANA – Applying for a new job in 2025 often means your resume will first be scrutinized by artificial intelligence, not a human recruiter. With job postings attracting massive numbers of applications, companies increasingly turn to AI tools to sift through candidates before they reach human resources.
Data from Resume Genius indicates that 48% of hiring managers now utilize AI for initial resume and application screening. According to a CNN report, the Society for Human Resources Management projects a significant 6.1% compound annual growth rate for the AI recruitment sector between 2023 and 2030.
While companies have long used Applicant Tracking Systems (ATS) for keyword parsing, AI offers a more advanced approach by “reading” and understanding resume content to identify suitable candidates. Experts suggest this can benefit both recruiters and applicants. AI can analyze applications more holistically, potentially reducing the reliance on strict keyword matching that might disadvantage qualified candidates who don’t use specific jargon.
Madeline Laurano, chief analyst at Aptitude Research, notes that modern AI takes a “skills-based approach,” inferring abilities rather than solely relying on explicit keywords. Candidates whose resumes demonstrate relevant skills may be identified without specific keyword inclusion.
However, understanding how these AI algorithms function is crucial for job seekers. While AI simply discarding resumes is a “misconception,” according to Resume Genius career expert Nathan Soto, hiring managers overwhelmed by applications rely on AI to manage the initial sorting. Soto advises applicants to ensure their resume skills align with the job posting and to avoid overly complex formatting that may confuse automated systems.
The integration of AI extends beyond resume screening. Companies like Workday and Indeed have introduced AI-powered candidate sourcing and outreach tools. LinkedIn’s “Hiring Assistant” even acts as an AI agent capable of screening applications, sourcing candidates, and engaging in initial chats with applicants.
Despite the advancements, concerns regarding bias in AI algorithms persist. Research has indicated that some large language models can unfairly favor candidates with names associated with certain racial groups. Additionally, the potential for AI to generate inaccurate information (“hallucinate”) raises concerns about misinterpreting applicant qualifications. Experts emphasize that while AI can streamline the hiring process, the final hiring decision should always involve human judgment.
