Australian businesses are increasingly facing challenges due to the rise of AI-generated resumes, spending an average of 9.56 days sorting through irrelevant applications for each open position.
A study commissioned by Remote, a global HR platform, reveals that 506 businesses in Australia are struggling with surging job application volumes and ongoing talent shortages.
The report highlights how AI has intensified issues in the labor market, creating difficulties for both job seekers and employers.
Many companies report being overwhelmed with more applications than they can manage. In the past six months, 83% of businesses received AI-generated resumes containing inaccurate information, despite one-third of these companies struggling to find adequately skilled candidates.
AI-assisted job applications have led to bulk submissions, making it harder for employers to find suitable candidates and for applicants to stand out.
As a result, 48% of businesses have resorted to shortcut-driven processes, reviewing applications more superficially due to high volume, potentially overlooking qualified candidates.
Recruiters have also noticed a significant increase in under-qualified applicants, with 54% of them reporting such issues, affecting 64% of companies in Australia.
Despite these challenges, 87% of Australian businesses expect hiring activity to increase this year.
To address the overflow of applications, many organizations are adopting strategies like integrating AI technologies to screen and match candidates.
Over a quarter of Australian businesses are using AI to manage the application volume more efficiently.
Additionally, businesses are implementing other measures to streamline recruitment, including pre-screening assessments, partnering with specialized recruiting firms, and reassessing role qualifications.
30% of businesses use pre-screening assessments, 22% collaborate with recruitment firms, and 25% are reconsidering the qualifications required for certain positions.
Job van der Voort, CEO and co-founder of Remote, commented that while AI has revolutionized global talent access and remote employment opportunities, it has also led to application overload.
He emphasized that the key is not rejecting AI but using it strategically to streamline hiring, verify skills, and efficiently connect with the right talent.
