AI improves cover letters, not hiring chances

Generative AI helps job seekers write better cover letters, but it does not increase their chances of getting a job. This is shown by research conducted by four economists at Tilburg University, published in the journal ESB. The researchers conclude that AI primarily improves the standard elements of a cover letter, while the motivation—often the most important part for recruiters—remains largely unchanged.

For the study, job seekers wrote cover letters; some were allowed to use ChatGPT, while others were not. Recruiters from companies including Philips, PwC, VodafoneZiggo, and Rabobank evaluated the letters. Although the AI-assisted letters scored higher on average, this did not result in more invitations to job interviews.

According to researcher Till Wicker, AI has a particularly positive effect on less qualified job applicants. As a result, candidates become more evenly matched, making it harder for recruiters to identify the best candidates. At the same time, AI allows people to write cover letters more quickly, so employers are expected to receive more responses.

The use of AI is also on the rise among employers. A survey of approximately 1,000 U.S. hiring managers shows that virtually all of them use AI during at least part of the selection process. This raises the risk of a situation in which a cover letter written by AI is evaluated by AI software.

The researchers estimate that the increasing use of AI could reduce the quality of the match between employers and employees by about one percent. Companies receive less distinctive information about candidates, increasing the likelihood that positions will not be filled by the best-suited person.

According to Wicker, employers will therefore likely have to look for new ways to assess candidates, such as through brief introductory interviews instead of traditional cover letters. For now, he does not view mandatory disclosure of AI use as an effective solution.