Greenhouse CEO Daniel Chait says artificial intelligence is creating a "doom loop" in hiring, as job seekers use AI tools to send applications at scale while overwhelmed recruiters increasingly turn to AI to screen them.
Candidates can spend about $20 on tools that automatically apply to Greenhouse jobs, contributing to a surge in applications that recruiters struggle to process, according to a Fortune report published Sunday.
Greenhouse currently has about 175,000 live jobs, with an average of 254 applicants per posting, while applications per recruiter have jumped 412%.
AI Doom Loop
"This is the first time when really both sides have been unhappy," Chait said. "The market just isn’t working for either side."
As candidates send more AI-generated applications, recruiters use AI to handle the growing volume. Rejected applicants then respond by sending even more automated applications.
"We’ve called that the AI doom loop," Chait said. "Everyone’s using their own AI to solve their own problem, but it’s making the whole system worse."
Chait said recruiters can receive hundreds or thousands of applications within days. With many applications generated using AI, they can also begin to look similar, making it harder for employers to identify candidates who are genuinely interested in a position.
Job seekers have already begun experimenting with AI to navigate automated hiring systems. Some candidates are creating multiple resume versions tailored to different skills and keywords, reflecting growing frustration with automated screening.
Hiring Squeeze
The problem comes as entry-level workers face growing pressure. WeWork CEO John Santora recently said there was "no question" entry-level hiring was under pressure as AI reshapes workforce needs, while Upwork Inc. (NASDAQ:UPWK) CEO Hayden Brown warned that fear around AI is adding to worker uncertainty.
Employers are also bringing more automation into recruiting. Amazon.com Inc. (NASDAQ:AMZN) introduced Connect Talent in April, an AI-powered platform designed to identify, screen and interview candidates, including through automated voice interviews.
The broader shift is creating an unusual hiring problem: candidates can use AI to apply to far more jobs, while companies can use AI to process far more applicants. That can leave both sides relying increasingly on automation to deal with automation.
Greenhouse Fix
Greenhouse’s "My Dream Job" feature lets candidates mark one job per month as their top choice.
Nearly 500,000 such applications have been submitted, with candidates hired at about five times the rate of others.
Greenhouse also acquired Ezra AI Labs to offer AI voice interviews and reduce reliance on résumé screening.
"Why would I send out automatic thousands of job applications if every single one of them I have to take an interview for?" Chait said.
Human Signal
As AI applications grow, personal effort could help candidates stand out.
Actress Anne Hathaway warned against ChatGPT-written thank-you notes after receiving similar-looking messages during hiring.
"If you’re out there thinking that you’re getting away with something, there’s a chance that you might be revealing yourself," Hathaway said.
Netskope Inc (NASDAQ:NTSK) CEO Sanjay Beri has also recommended building relationships instead of relying entirely on online applications, noting that some of the best jobs are "never published."
"Who you know, how you get to know them, and building your network will pay off over time," Beri said.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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