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A surge in AI-generated résumés is leading to a hiring crisis for Aussie employers who are missing out on top talent.
According to a new report by Remote, Aussie businesses are now wasting 9.56 days rummaging through irrelevant AI-generated résumés per each open role.
This is a key contributor to Aussie businesses facing a growing crisis in efficiently filling roles – amid surging application volumes, consistent local talent shortages, and rapidly changing workforce dynamics.
With the contemporary Australian job market being as disordered as ever, AI is causing issues for both employers and job hunters. Job hunters are struggling to find work, while businesses are being overflooded with job applications.
In terms of the overflooding of applications, a quarter of businesses stated they frequently receive more applicants than they can handle, and 83 per cent have received AI-generated résumés in the past six months that contain false information.
The overflow of applicants stands in contrast to almost one-third of businesses (31 per cent) in Australia that are still struggling to find candidates with the right skills. Although for job hunters, AI has allowed for bulk applying, employers are struggling to sift through the mass résumés – and finding it harder to differentiate between what’s true and what’s fabricated.
“New technologies have transformed the way businesses access talent globally while also expanding opportunities for jobseekers through remote employment,” said Job van der Voort, chief executive and co-founder of Remote.
“While global access to talent is a major advantage, the surge in AI-driven tools and mass-apply tactics have led to application overload, making it harder for HR teams to identify top candidates.”
Employers and HR teams must understand how to flip AI from being a hindrance to an asset. As 87 per cent of Australian businesses expect to hire more staff this year, Remote claims that companies are deploying various tactics to find high-quality candidates – including leveraging AI.
“The key is not rejecting AI, but using it strategically – we’re seeing more teams leverage AI to streamline hiring, verify skills, and cut through the noise, ensuring they connect with the right talent efficiently,” said van der Voort.
While AI is the crux of some issues plaguing businesses, over a quarter (26 per cent) of Australian businesses are using AI technology in the recruiting process to help with both screening or matching candidates to combat the overflow of applications.
According to Remote, other measures that companies are deploying to assist with growing recruitment challenges include:
- Implementing pre-screening assessments (30 per cent).
- Partnering with specialised recruiting firms (22 per cent).
- Revisiting qualifications for roles (25 per cent).
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
