Job seekers increasingly blame AI and applicant tracking systems (ATS) for their hiring struggles, but the reality is more nuanced. According to hiring experts interviewed by Business Insider, most job application rejections still come from human recruiters, not automated systems—despite popular belief on social media.
Bobby Miloev, a researcher with résumé builder Enhancv, argues that job seekers have “gaslit themselves into believing a story that’s not true” about AI blocking their applications. While AI and applicant tracking systems play growing roles in hiring, they rarely make final rejection decisions independently.
The technology’s actual role is more limited than many believe. Automated systems primarily handle “knockout questions”—dealbreaker inquiries like work authorization or required certifications—where recruiters set parameters for automatic filtering. Daniel Chait, CEO of hiring-software company Greenhouse, explains that applicant tracking systems have evolved from “glorified inboxes” to tools that generate analytics and help identify qualified candidates, but human decision-making remains central.
Current ATS scoring systems are relatively simple, generating matches based on keyword alignment between résumés and job descriptions. However, Miloev notes that many recruiters don’t heavily rely on these scores, especially as AI has made it easier for applicants to game the system by tailoring résumés. The technology doesn’t yet involve sophisticated parsing or “complicated understanding by large language models.”
The real culprit behind hiring frustrations is what Chait calls an “AI doom loop.” Easy online applications have created an avalanche of submissions, forcing recruiters to wade through mountains of résumés while job seekers feel like they’re “shouting into the void.” Mark Jensen, a recruiter with Upswing Talent Acquisition, says he stops accepting applications once they pile up to avoid waiting for “perfection to fall into our lap.”
High-profile cases like the lawsuit against Workday have raised questions about appropriate AI screening, though the company denies the claims and emphasizes human decision-making in its products. The bottom line: while technology shapes the hiring landscape, humans—not algorithms—typically make the final call on your application.
Key Quotes
People have gaslit themselves into believing a story that’s not true
Bobby Miloev, a researcher with résumé builder Enhancv, challenges the popular narrative that AI is automatically rejecting job applications. This statement highlights how misconceptions about technology’s role in hiring have become widespread despite not reflecting actual recruitment practices.
They’re applying to many, many more jobs than they used to, and yet they’re not getting hired. When that happens to you, you look for a reason.
Daniel Chait, CEO of hiring-software company Greenhouse, explains why job seekers blame AI for their struggles. His observation captures the psychological need to find explanations for frustrating job market experiences, even when those explanations may be inaccurate.
It used to just be like the line at the deli — everybody shows up and goes in order
Chait describes how applicant tracking systems have evolved from simple chronological processing to more sophisticated analytics tools. This quote illustrates the technological transformation in hiring while emphasizing that human judgment remains central to the process.
What the hell do I do with that? How do I get to the person I need to hire when there’s all this noise?
Chait articulates the recruiter’s perspective in the AI doom loop, showing that technology has created challenges for hiring professionals too. This reveals that both job seekers and employers are struggling with the unintended consequences of easier application processes.
Our Take
This article exposes a critical gap between perception and reality in AI’s role in hiring, revealing how technology has become a convenient scapegoat for broader systemic issues. The “AI doom loop” concept is particularly insightful—it demonstrates how technology can create problems not through malicious design but through unintended consequences of convenience.
What’s most striking is that current ATS technology remains relatively unsophisticated, relying on simple keyword matching rather than advanced AI capabilities. This suggests we’re in a transitional period where AI’s reputation exceeds its actual deployment in hiring. The real story isn’t about AI replacing human judgment, but about how digital transformation has fundamentally altered the supply-demand dynamics of job markets. As AI capabilities advance, the challenge will be ensuring these tools enhance rather than complicate hiring fairness and efficiency.
Why This Matters
This story matters because it addresses a widespread misconception affecting millions of job seekers navigating an increasingly difficult employment market. Understanding the actual role of AI in hiring helps candidates develop more effective job search strategies rather than blaming technology for systemic issues.
The “AI doom loop” phenomenon reveals a critical tension in modern recruitment: technology has simultaneously made applying easier and getting hired harder, creating frustration on both sides. For businesses, this highlights the need for better applicant management systems and more transparent hiring processes. For workers, it underscores the importance of strategic applications rather than mass submissions.
The findings also have broader implications for AI accountability and transparency. As AI tools become more sophisticated in hiring, distinguishing between human and algorithmic decision-making becomes crucial for fairness and legal compliance. This story serves as a reality check in an era where AI is often blamed—or credited—for outcomes still largely controlled by humans, shaping how we should approach AI regulation and ethics in employment.
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Source: https://www.businessinsider.com/ai-rejecting-job-applications-tracking-hiring-2025-12