Candidates & Gen AI: The Employer’s Dilemma 

The use of generative AI (Gen AI) amongst job seekers has sparked significant interest in the media, with numerous tools now available to enhance résumés, CVs, cover letters and interview preparation. Yet, our recent research, The AI-Enabled Applicant: How Candidates Are Really Using Gen AI in Recruitment, reveals that only one in five UK job seekers currently utilizes Gen AI during their job search. 

Despite this relatively low adoption rate, organisations face a growing challenge: how to navigate a landscape where applications and interview responses may be AI-enhanced or even AI-created. How can employers ensure they’re selecting the best human talent rather than simply the candidates with the most effective AI assistance? 

This article, the second in our series exploring data from our report, examines how Gen AI could reshape recruitment outcomes both today and in the future. 

CV and Application Reliability 

CVs were already known to be relatively poor predictors of future job performance due to inconsistency and bias. With 55% of UK job seekers using Gen AI to help them prepare their CV, the use of Gen AI threatens to further weaken their predictive value, as they may increasingly reflect Gen AI capabilities rather than actual candidate suitability. Many CVs now appear perfectly tailored to match the keywords and skills specified in job descriptions, further complicating the selection process. Volume recruiters also report seeing identical responses across applications, suggesting common use of Gen AI to produce non-authentic answers. 

With CV sifting and standard application questions, both automated sifting tools that use word-matching and human reviewers face growing difficulty in identifying the strongest candidates. It’s difficult for both humans and AI to detect which candidates are using Gen AI to create dishonest content, versus those who are using it to enhance the presentation of original and authentic content.   

Several studies have also shown that using AI to detect AI use is fraught with risk of bias against non-native English speakers. And anyone who has used online detectors will know that original text is often misclassified as 100% Gen AI produced due to the inadvertent use of a certain keyword or phrase.  

This means that many candidates who are using Gen AI to produce a CV or answer typical application questions are effectively undetectable, leading to these stages quickly becoming even less reliable at establishing candidate quality. Some major employers have already begun reducing their reliance on CVs for initial candidate screening or eliminated them entirely from their processes. This trend is likely to accelerate as confidence in these documents continues to erode. 

Online Test & Assessment Vulnerability 

Under controlled lab conditions with well-crafted prompts, Gen AI tools have achieved passing scores on some standard online assessments including psychometric tests, producing correct or criteria-matching answers across various question types. Cognitive reasoning tests, situational judgement tests and even personality tests have been trialled to see how accurately Gen AI tools can generate correct or high scoring answers. With access to the role requirements and other company information, Gen AI tools can produce answers to some online tests that inflate the score a typical candidate might achieve.   

At this point, we’re not seeing score disruption at this stage of volume assessment processes. Every method will have a different level of vulnerability. Some may be sound, and the biggest threat to their accuracy may continue to come from candidates asking other people to take the tests for them.   

However, with 20% of job seekers in our survey saying they used Gen AI to complete an online test, it would be prudent for employers to periodically review and stress-test their online assessments to ensure that they are not easy to pass using Gen AI tools. If there are vulnerable areas, organisations can then introduce more robust tests and assessments to ensure their sift progresses the candidates with genuine potential for the role.   

Online Interview Problem 

It can be tempting to feel that abandoning online assessment methods in favour of pre-recorded or virtual live interviews would be a way of avoiding any risk of Gen AI use. Pre-recorded video interviews are likely to remain part of many volume assessment processes, valued for their efficiency and for creating opportunities to evaluate key criteria like motivation and verbal communication skills. And live virtual interviews over Zoom or Teams are common pre-assessment centre shortlisting tools, used to ensure that those invited to the assessment centre have sufficient the interpersonal skills to warrant a place in the final selection stage. 

However, pre-recorded or asynchronous interview are also not completely safeguarded from Gen AI disruption. While our current data reveals low usage of Gen AI for pre-recorded or live virtual interviews, as Gen AI tools become more sophisticated, it could create greater potential risk of disruption to the expected levels of authenticity in answers. 

New AI tools can ‘listen’ and provide natural responses in real-time, meaning that, if they choose, candidates can provide credible—yet made-up— answers to typical interview questions. Combined with advancements in gaze management technology, during interviews candidates can read from AI-generated responses while appearing to maintain direct eye contact with the web camera and delivering off-the-cuff answers.  

Research suggests that video interviewees who read or paraphrased AI-generated responses received much higher overall interview ratings than those who did not use AI. This presents a concerning catch-22: the very methods designed to efficiently screen candidates may no longer be reliable, while the alternative of conducting more in-depth interviews will stretch recruitment timelines and budgets. 

Navigating the New Recruitment Reality 

Many organisations are likely to need to review their assessment tools to adopt an approach that balances efficiency with integrity. As our research demonstrates, the tension between these priorities will only intensify as Gen AI capabilities continue to evolve. Some degree of AI assistance is likely unavoidable, so employers must concentrate instead on managing its use constructively and identifying the truly human qualities that drive success in a role. 

The good news is that our data indicates that it isn’t necessary to throw out everything that has helped us to find great new employees in the past. But it does show that the potential for disruption is present, and that the latest Gen AI capabilities are already being used in ways that can make it harder to tell who to hire—especially if we don’t review and evolve our assessment processes to protect the integrity of our recruitment outcomes.  

Identifying vulnerabilities in your assessment process is a crucial first step for organisations seeking to maintain integrity. That why PeopleScout’s Assessment Design & Delivery team has developed our Gen AI Opportunity & Risk Assessment Audit. This thorough review of your recruitment process will identify both vulnerabilities and opportunities related to Gen AI throughout the candidate journey. Our occupational psychologists prepare a report of evidence-based recommendations so you can focus your resources on critical vulnerability points, protecting the accuracy of your selection as well as diversity outcomes. 

For more Gen AI insights, download the full AI-Enabled Applicant: How Candidates Are Really Using Gen AI in Recruitment report. 

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PeopleScout Jobs Report Analysis – February 2025

U.S. employers added 151,000 jobs in February, an increase from January’s downward revision of 125,000 but below the 170,000 forecast. The unemployment rate edged up to 4.1%, its highest level since late 2023, while hourly wages rose 4.0% year-over-year. The labor force participation rate declined to 62.4%, its lowest level in over a year. Job gains were concentrated in healthcare, financial activities and transportation and warehousing, while retail, leisure and hospitality and government saw declines. February marks the 50th consecutive month of job growth, though at a more moderate pace. 

The Numbers 

151,000: U.S. employers added 151,000 jobs in February. 

4.1%: The unemployment rate rose slightly to 4.1%. 

4.0%: Wages rose 4.0 % over the past year. 

The Good  

The U.S. economy maintained a steady pace of job growth in February, with employers adding 151,000 jobs—an improvement over January’s revised figure of 125,000 and marking the 50th consecutive month of job growth. While the increase fell short of economists’ expectations of 170,000, it still signals steady hiring. Healthcare remained a key driver of job growth, adding 52,000 positions, in line with its 12-month average. Other sectors contributing to job gains included financial activities (+21,000), transportation and warehousing (+18,000) and social assistance (+11,000). Wage growth remained solid, with average hourly earnings rising 4.0% year-over-year. 

The Bad  

While job growth remained, signs of softening emerged in February’s report. The unemployment rate ticked up to 4.1%, its highest level since late 2023, and the labor force participation rate declined to 62.4%, its lowest level in over a year. The labor force shrank by 385,000 workers, and the household survey painted an even weaker picture, showing a drop of 588,000 employed individuals. Additionally, the number of workers holding part-time positions but seeking full-time work surged by 460,000 to 4.9 million. Retail saw a loss of 6,000 jobs, while the leisure and hospitality sector declined by 16,000, with a notable loss (-27,500) in bars and restaurants. 

The Unknown  

February’s report raises questions about the trajectory of the labor market in the months ahead. While job creation remains positive, the dramatic decline in household employment and rising underemployment suggest potential weakness beneath the surface. The Federal Reserve is closely monitoring these developments as it considers the timing of interest rate cuts. Uncertainty remains high as market volatility has increased in recent weeks, and consumer sentiment surveys have shown concerning drops in confidence.  

Conclusion  

The February 2025 jobs report presents a mixed picture of the U.S. labor market. While job gains persisted, the increase in unemployment and decline in labor force participation raise concerns about underlying labor market strength. For now, the labor market remains fundamentally healthy by historical standards, with unemployment still near record lows. The coming months will be crucial in determining whether the labor market maintains its resilience or enters a more pronounced slowdown. 

PeopleScout Jobs Report Analysis – January 2025

U.S. employers added 143,000 jobs in January, falling short of the predicted 170,000. Hourly wages are up 4.1% and the unemployment rate dropped slightly to 4.0%, beating forecasts and remaining near historic lows. The BLS also revised the monthly pace of job gains for 2024 to an average of 166,000, down from the previous estimate of 186,000. While January’s numbers show a hiring slow down from December, the gains are not far off the adjusted 2024 monthly average. 

The Numbers 

  • 143,000: U.S. employers added 143,000 jobs in January. 
  • 4.0%: The unemployment rate edged down to 4.0%. 
  • 4.1%: Wages rose 4.1 % over the past year. 

The Good  

The U.S. labor market kicked off 2025 with modest job growth, adding 143,000 jobs in January. While this fell short of economists’ expectations, the unemployment rate edged down to 4.0%, marking its lowest level since May 2024, and wage growth remained strong. Job gains were concentrated in familiar strongholds: Healthcare (+44,000), Retail (+34,000) and Government (+32,000), continuing trends from late 2024. Additionally, the labor force participation rate for prime-age workers (25-54) ticked up to 83.5%, driven by increased male participation. 

The Bad  

January’s jobs report suggests that the labor market may be losing momentum. The 143,000 jobs added represent a notable step down from December’s upwardly revised 307,000 gain. Moreover, annual revisions to 2024 data revealed that job growth was weaker than initially estimated, with the Labor Department revising down its job count by 589,000 for the 12 months ending in March 2024. Mining and oil and gas extraction lost 8,000 jobs, and hiring remains sluggish across several industries outside of Healthcare, Social Assistance and Government. Despite strong wage growth, broader labor market churn remains low, suggesting that businesses are proceeding with hiring decisions cautiously.  

The Unknown  

This report leaves several key questions unanswered. While the slowdown in job creation may indicate a cooling labor market, strong wage growth and a historically low unemployment rate suggest resilience. How will the Federal Reserve interpret these mixed signals? With their next meeting in March, there’s still time for additional data—including another jobs report and inflation readings—to shape its decision on interest rates. Investors have been anticipating potential rate cuts in the first half of the year, but January’s wage gains could lead the Fed to take a wait-and-see approach. Additionally, new administration policies—including proposed cuts to federal payrolls and immigration restrictions—could significantly reshape labor market dynamics in the months ahead.  

Conclusion  

The January 2025 jobs report suggests a labor market that is stable but slowing. While job growth remains positive, the pace has decelerated, and downward revisions to prior months highlight a weaker hiring environment than previously believed. Still, with unemployment at just 4.0% and wages continuing to rise, the labor market remains strong by historical standards. The market appears to be transitioning from post-pandemic dynamics to a more measured growth pattern, though policy uncertainties could significantly impact this trajectory in the months ahead. 

Power Up Your Presence: Personal Branding for Business Leaders

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Panel Facilitator:

Robert Peasnell, Head of Growth at PeopleScout UK

Robert works with employers across both the PeopleScout and TMP Worldwide brands to develop and implement strategies that meet their talent acquisition goals.

With a background in employer branding and marketing, Robert has spent most of his career working for communications agencies where he has supported organisations across most sectors on a broad range of domestic and global projects.

A regular speaker at HR conferences, Robert is a visiting lecturer at Surrey Business School and sits on the Harvard Business Review Advisory Council.

LinkedIn: https://www.linkedin.com/in/robertpeasnell/

Panelists:

Patsy Doerr, Senior Partner at OrgShakers U.S.

With over 25 years working globally for profit and non-profit organizations across a variety of industries including news, research, data, financial services, and women’s advocacy, Patsy is an award-winning thought leader, speaker, coach, and facilitator.

Formerly Chief ESG and People Officer at a leading multi-family real estate investment trust, she previously served as CEO of a private, non-profit educational women’s volunteer organization aimed at improving communities and the social, cultural, and political fabric of civil society.

Having worked as an expatriate in Hong Kong, London, and Switzerland, Patsy has strong international cultural acumen, and she has served on several boards and committees. She is also an Adjunct Professor at Fordham University in New York.

LinkedIn: https://www.linkedin.com/in/patsydoerr/

Rachael Edmondson-Clarke, Specialist in Leadership Psychology & Human Performance

With over two decades of expertise in leadership psychology and biology, Rachael helps organizations build sustainable high-performance cultures that drive growth and engagement. With an academic and commercial background in marketing, including experience working for global blue-chip companies, she understands the power of personal branding.

For over 10 years, she has run her own successful speaking, training and coaching business, working with senior leaders, professional athletes, and top-tier brands to enable meaningful change. Her combined expertise in business strategy and human potential makes her a trusted partner for leaders seeking to thrive, not just perform.

Outside of work, she’s a devoted wife and mother, an outdoor enthusiast, and a lifelong advocate for personal growth.

LinkedIn: https://www.linkedin.com/in/rachaeledmondsonclarke/

Ayo Ogunde, Director of Strategy & Innovation at PeopleScout UK

As Director of Strategy & Innovation at PeopleScout and TMP Worldwide, Ayo creates strategies to help brands connect with audiences in today’s digital landscape. Specialising in brand strategy, social media, and the creator economy, Ayo drives innovation to keep brands competitive through emerging trends and cultural shifts.

With over 15 years of experience in global consumer strategy and digital transformation, Ayo helps brands build authentic, loyal connections with audiences. A champion for diversity and inclusion in the tech space, Ayo is also involved in SheFi and the Metaverse Fashion Council, contributing to conversations around Web3 and blockchain’s role in shaping inclusive digital futures.

Ayo is also passionate about mentoring the next generation of brand leaders and frequently shares insights on leveraging cultural trends, generational shifts, and digital communities to drive growth and innovation.

LinkedIn: https://www.linkedin.com/in/ayoogunde/

Therese Procter, Senior Partner at OrgShakers UK

Formerly Chief People Officer at a major UK retail bank, Therese was a key player in the transformation of the UK financial services sector following the global banking crisis.

She a leading advisor and consultant across a range of sectors including Financial Services, Telecoms, Hospitality, Retail, Healthcare, Distribution, Construction, and Property. She also sits on the boards of a number of organizations in financial services, technology, and not-for-profit organizations.

Therese is a Chartered Companion of the Chartered Institute of Personnel and Development, a Fellow of the Royal Society of Arts and is widely recognized as one of the UK’s most progressive Human Resources practitioners featuring in the top 15 of HR Magazine’s list of Most Influential HR Practitioners on six occasions.

LinkedIn: https://www.linkedin.com/in/therese-procter-chccipd-frsa-lion-7950692/

Job Interviews & Gen AI: Pitfalls & Best Practices to Hire Top Talent


Presenter Information:

Amanda Callen, CPsychol AFBPsS HCPC-registered FRSA

Amanda is a Chartered Psychologist and an HCPC-registered Practitioner Psychologist with over 30 years’ experience of working in occupational psychology consultancy and research within UK and global public, private and third sector organisations. 

She is an assessment design and strategy specialist, with a particular interest in diversity, inclusion and fairness in assessment methodologies, and in how AI and new technology is impacting assessment practice and reality.

Amanda is Head of Assessment Design at PeopleScout, where she leads the team of psychologists providing a range of psychology services, including evidence-based diagnostics, assessment data analysis and bespoke assessment methodology design, alongside our consultancy and partnership services.

Email: amanda.callen@peoplescout.co.uk
LinkedIn: https://www.linkedin.com/in/amanda-callen-c-psychol-afbpss-frsa-73a800a/

James Chorley

James Chorley is a seasoned professional with over 16 years of extensive experience in the Recruitment Process Outsourcing (RPO) industry. As a Talent Solutions Director – RPO for PeopleScout, he has a proven track record of success in various facets of RPO, including implementation, first-generation RPO, early careers and assessment solutions. His expertise lies in forging strong client partnerships and delivering tailored recruitment strategies that drive success.

In addition to his RPO expertise, James has a robust background in learning and development. This unique combination enables him to design and implement comprehensive assessment solutions that not only identify top talent but also support their ongoing development and growth within organisations. His commitment to continuous improvement and innovation in recruitment processes sets him apart as a thought leader in the industry.


Email: james.chorley@peoplescout.co.uk
LinkedIn: https://www.linkedin.com/in/james-chorley-73103311/

Hype or Happening? What Our Data Tells Us About AI in Recruiting

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Presenter Information:

James Chorley

James Chorley is a seasoned professional with over 16 years of extensive experience in the Recruitment Process Outsourcing (RPO) industry. He has a proven track record of success in various facets of RPO, including implementation, first-generation RPO, early careers and assessment solutions. His expertise lies in forging strong client partnerships and delivering tailored recruitment strategies that drive success.

In addition to his RPO expertise, James has a robust background in learning and development. This unique combination enables him to design and implement comprehensive assessment solutions that not only identify top talent but also support their ongoing development and growth within organisations. His commitment to continuous improvement and innovation in recruitment processes sets him apart as a thought leader in the industry.


Email: james.chorley@peoplescout.co.uk
LinkedIn: https://www.linkedin.com/in/james-chorley-73103311/

Amanda Callen
Amanda Callen is the Head of Assessment Design at PeopleScout. She is a Registered Occupational Psychologist (Health and Care Professions Council) and Chartered Psychologist (British Psychological Society). She works with a particular emphasis on applied social psychology and a human-centred perspective. Amanda collaborates with clients to understand and build diversity in recruitment, assessment and selection and the connection between the employee experience and work productivity and performance.

Email: amanda.callen@peoplescout.co.uk
LinkedIn: https://www.linkedin.com/in/amanda-callen-c-psychol-afbpss-frsa-73a800a/

The AI-Enhanced Candidate: Adapting Recruitment Strategies for the Digital Age

Thanks for your interest in our webinar, The AI-Enhanced Candidate: Adapting Recruitment Strategies for the Digital Age. Keep an eye on your email for information about how to join the broadcast.

In the meantime, check out these resources:

AI in Recruiting: Hype, Ethics & Best Practices

The information provided in this webinar does not, and is not intended to, constitute legal or other professional advice; instead, all information, content, and materials available in this webinar are for general information purposes only. Viewers of this webinar should contact their attorney or legal advisor to obtain advice with respect to any particular legal matter. No viewer of this webinar should act or refrain from acting on the basis of information in this article without first seeking legal advice from counsel in the relevant jurisdiction. All liability with respect to actions taken or not taken based on the contents of this webinar are expressly disclaimed by PeopleScout, Inc.. The content in this article is provided “as-is”, and no representations are made by PeopleScout that the content is error-free.

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Article: Dos & Don’ts of Automating the Candidate Experience


Presenter Information:

Chad Getchell
Chad Getchell leads technical solutions architecture and technology implementation for PeopleScout. Chad has been with PeopleScout for nearly five years, and also led product management during his tenure. Prior to joining PeopleScout, Chad served in product management leadership positions with ADP, Walmart and AT&T. Chad also served as a Leadership Instructor in the University of Wisconsin’s Graduate School of Business. He holds a bachelor’s degree in economics from St. Lawrence University and an MBA with a concentration in operations management from Clarkson University.

Email: cgetchell@peoplescout.com
LinkedIn: https://www.linkedin.com/in/chad-getchell-a36897/

Patti Woods
Patti Woods is a Sr. Implementation Manager for Training at PeopleScout. In her role, Patti supports both the process creation and training of new account teams and has also supported enterprise-wide training efforts and certification programming. With an extensive professional background encompassing RPO, in-house recruitment, training, program development and oversight, and change management, she brings a valuable perspective to the table. A proud graduate of Michigan State University, and a lifelong learner, she’s passionate about authenticity and transparency as drivers to propel initiatives and bring teams together.

Email: pwoods@peoplescout.com
LinkedIn: https://www.linkedin.com/in/patti-woods-753119b3/

The Ticking Talent Clock: Is Time Running Out to Address the Skills Crisis?

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Article: Countdown to Skills Crisis? What Our Latest Research Tells Us About Skills Gaps
Article: Tech & Digital Skills: 5 Recruitment Strategies for Closing the Skills Gap
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Presenter Information:

Simon Wright
As Global Head of Talent Advisory Consulting, Simon brings together PeopleScout’s broad capabilities across EVP and employer brand, recruitment marketing, assessment, talent insights and diversity, equity and inclusion, delivering award-winning results for clients across a range of industries and sectors. Operating at a strategic level, Simon has a proven track record of building and driving creative and innovative strategic talent programs that positively impact business performance. With over 20 years’ experience in RPO and talent management consulting. Simon brings a global perspective to talent acquisition and engagement having spent time living and working across North America, EMEA and Asia Pacific.

Email: swright2@peoplescout.com
LinkedIn: https://www.linkedin.com/in/simonjwright/

Nick Shaw
Nick Shaw is the Co-Founder and Chief Customer Officer of skills-based workforce management platform provider Spotted Zebra. Nick is an industry leader in organisational design, assessment science and psychometrics, and is a chartered occupational psychologist and Associate Fellow of the British Psychological Society. Nick also has over 20 years’ experience in global commercial roles in the HR Tech industry, including Managing Director roles at SHL and Gartner.

Email: nick.shaw@spottedzebra.co.uk
LinkedIn: https://www.linkedin.com/in/nick-shaw-08458a5

Enhancing Candidate Experience: Proven Tactics for Personalisation and Inclusivity

Additional Resources:

Inside the Candidate Experience 2023 Report


Presenters:

Simon Wright, Global Head of Talent Advisory Consulting, PeopleScout

Nicola Sullivan, Candidate Experience and Engagement Specialist, Meet & Engage

Frances Trought, Founder, Everything D & I
Sam Wainwright, Volume Recruitment and Emerging Talent Lead, Lloyds Banking Group