Imagine wasting two weeks on fake applicants. Australian businesses are buried under a mountain of AI-generated resumes, spending an average of 9.56 days—almost two full working weeks—sorting through unsuitable applications for every job opening.
This reality, uncovered in new research by Remote, a global HR platform, comes from surveying 506 Australian companies. The root cause? A flood of AI-generated resumes clogging up the hiring pipeline, potentially overshadowing Australia’s best talent with flashy but often unreliable applications. With skills shortages already putting pressure on local businesses and labour market conditions shifting rapidly, this AI chaos is hitting Aussie employers where it hurts most—time, money, and lost opportunities.
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AI turning a tough gig into a nightmare
The Australian jobs market is already challenging, and AI is making it worse. Job seekers are struggling to stand out, while businesses are overwhelmed by a sea of applications—most of which are AI-generated and lack substance. Remote’s research reveals that a quarter of businesses are drowning in more applicants than they can manage, and 83% have received AI resumes containing false data in the past six months. The real kicker? 31% of Australian businesses still can’t find candidates with the right skills amidst the flood of applications.
The rise of tools like ChatGPT, Rezi, and Jobscan—which 45% of job candidates globally use, according to a 2024 Canva and Sago survey—has made it easier for candidates to craft keyword-stuffed resumes that breeze through applicant tracking systems (ATS). A 2023 MIT Sloan study found these AI-enhanced CVs land more interviews and often secure higher salaries, but as Cristina Criddle and Delphine Strauss reported in the Financial Times, they tend to be generic and devoid of personality. Khyati Sundaram of Applied told the FT, “We’re seeing higher volume and lower quality,” a sentiment echoed across Australian HR desks. The result? A staggering 54% of recruiters report noticing a rise in under-qualified applicants, with 64% of businesses calling it a major headache.
The toll on businesses
This AI resume boom is a double-edged sword:
- Australian businesses are inundated, with 48% cutting review time per application just to keep up—risking the chance of overlooking top talent. Remote’s data shows that those 9.56 days per role equate to lost productivity and delayed hires.
- Amidst the flood of applications, skills shortages continue. The Financial Times points out that softened labour markets and online job postings only add to the chaos. Meanwhile, TestGorilla (2024) found that 60% of recruiters are now flagging buzzword overload—terms like “innovative” that lack substance—as a red flag.
- Hiring the wrong person is costly. Companies with 100-499 employees already spend $413,804 annually on HR tasks, and mis-hires only drive turnover costs higher.
Fighting back with smarter strategies
With 87% of Australian businesses planning to ramp up hiring in 2025, there’s growing pressure to separate genuine talent from the AI-generated noise. HR teams are adapting by using more sophisticated methods to navigate the AI flood. For example, Nelson Connects recommends hiring managers watch out for red flags in AI-generated resumes, such as repetitive phrases or missing information. Harvey Nash’s Andy Heyes highlights how “American grammar” and overly generic wording often trigger alarms. Australian HR professionals are encouraged to look for specifics, like “grew sales by 25% with a new CRM,” rather than vague descriptions.
Companies like Vervoe are focusing on skills-based assessments, and TestGorilla advocates for multi-measure testing—such as coding challenges or campaign pitches—to reduce mis-hires by 30%. For tech roles, practical tasks outweigh resumes that claim broad skills like “Python wizard.” Transparency also plays a crucial role—TestGorilla suggests asking candidates directly, “Did you use AI here? How?” This approach lets companies identify tech-savvy applicants without guilt, especially given that majority of students admit to using ChatGPT.
Furthermore, Odyssey Automation underscores the importance of human oversight beyond applicant tracking systems (ATS). Morgan McKinley’s Ross Crook agrees, noting that “human-to-human interaction” remains vital in making the final hiring decision. To avoid AI spam, Forbes (2024) recommends clearer, more specific job ads, pointing out that posts like “run a 5-person team to hit $1M in quarterly sales” are far more effective than vague ones like “manage a team.”
Remote CEO Job van der Voort isn’t holding back: “The growth of AI tools and mass-apply tactics has generated application overload… The key is using AI strategically to expedite hiring, verify skills, and get to the right talent quickly.” Already, 26% of Australian businesses use AI to match or screen candidates, another 30% use pre-screening tests, and 22% use specialist recruiters.
AI-generated resumes are becoming ingrained in the process, and their prevalence among young applicants, adept at avoiding detection, is well-documented by the FT. By combining AI efficiency with human judgment, companies can streamline operations—accelerating screening, reducing bias—and still minimize risk.
As the Wall Street Journal warns, “Spot AI-generated resumes and adapt—or fall behind.”
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Weeks of your team’s time, gone. AI applications are a black hole for productivity, but there’s a way out. HR, News, Resume Dynamic Business
