"Only a small fraction of layoffs are directly attributed to AI so far. Yet perceptions among workers (especially Gen Z) are far more pessimistic, feeding distrust and "AI anxiety." "People are screaming that AI is replacing people. That's totally not true. We're not seeing that kind of data at all," he told me. (U.S. employment data and my conversations with other leaders reinforce that conclusion.)"
"AI is creating a host of new challenges for employers, from generating a tsunami of automated applications-often in the millions for Fortune 500 companies-to enabling applicants to hide deficits in writing, thinking and analysis because of LLMs. As a result, sites like Indeed are playing a bigger role in verifying qualified candidates to narrow the funnel, even doing basic background checks upfront and helping employers assess how the roles they're hiring for are likely to evolve. "Your team is spending a crazy amount of time on this," he said. "This year, I think CEOs will be a little more sophisticated about the ROI.""
Only a small fraction of layoffs are directly attributed to AI, while worker perceptions—especially among Gen Z—are far more pessimistic and fueling AI-related distrust. Highly visible tech layoffs represent a small share of total employment and largely reflect post-pandemic over-hiring rather than AI-driven job destruction. AI is producing massive volumes of automated applications and enabling applicants to mask weaknesses in writing, reasoning, and analysis via LLMs. Recruitment platforms are expanding verification, performing basic background checks upfront, and helping employers anticipate role evolution to narrow candidate funnels. Employers are building AI agents to screen, interact with, and reach out to applicants to reduce HR workload and improve applicant experience.
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