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Impact of Generative AI on the Job Market and Hiring Practices

Impact of Generative AI on the Job Market and Hiring Practices

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by Giorgi Kostiuk

2 days ago


With rapid changes in the job market, generative AI becomes an essential tool for applicants and recruiters, but it also creates new challenges.

Generative AI in the Hiring Process

Today's job seekers are increasingly using generative AI to create resumes and cover letters. Tools that allow auto-application are gaining popularity, while employers receive numerous polished and personalized applications that do not always reflect the actual effort or qualifications of candidates.

Problems with Traditional Hiring Methods

The traditional hiring process relies on trust-based signals such as resumes and references, but these methods only assert qualifications based on self-reporting. With the rise of AI, there is a threat that the trust will weaken further; employers face difficulties in distinguishing real skills amid the similarities of applications.

Future with a Verifiable Reputation System

Establishing systems that allow verification of work history and achievements using decentralized identities and other technological solutions may resolve this issue. In the future, resumes could become programmable assets, enabling employers to verify candidates' actions and reputation based on credible data.

With a shift towards systems based on verifiable data, employers can more effectively assess candidates' qualifications and skills, which will help strengthen trust in the hiring process.

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