Australian firms face challenges with AI-driven resumes

Australian businesses are increasingly challenged by the rise of AI-generated resumes, spending an average of 9.56 days sifting through irrelevant applications for each open role.

In a study commissioned by Remote, a global HR platform, the report highlights the inefficiencies faced by 506 businesses in Australia due to surging job application volumes and persistent talent shortages.

The survey reveals that AI has exacerbated the challenges in the labour market, with both job seekers and employers encountering significant hurdles. Many companies report being inundated with more job applicants than they can feasibly manage. In the past six months, 83% of businesses received AI-generated resumes containing inaccurate information, despite about a third of these businesses struggling to find suitably skilled candidates.

The prevalence of AI-assisted job applications has facilitated bulk submissions from candidates, making it increasingly difficult for employers to identify potential fits, and for applicants to capture employers' attention. As a result, 48% of businesses have adopted shortcut-driven processes, reviewing applications more superficially due to the high volume, which could mean overlooking qualified candidates.

Recruiters have noted a notable increase in under-qualified applicants, with 54% reporting issues related to such inflows, impacting 64% of companies in Australia.

Despite these challenges, 87% of Australian businesses anticipate an increase in hiring activity this year. In response, many organisations are implementing strategies to improve their recruitment processes. Over a quarter of Australian businesses are now integrating AI technologies to screen and match candidates to tackle the application overflow problem.

Companies are also adopting other measures to streamline recruitment, including using pre-screening assessments, partnering with specialised recruiting firms, and revisiting the qualifications required for roles. Pre-screening assessments are utilised by 30% of the businesses, 22% are collaborating with recruitment firms, and 25% are reconsidering the qualifications needed for certain positions.

Job van der Voort, Chief Executive Officer and co-founder of Remote, commented on the findings, stating that new technologies have revolutionised global talent access and opened up more remote employment opportunities. He said, "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. 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."