The cover letter is obsolete in job applications
ChatGPT made it easy to write a polished job application. So easy, in fact, that many employers no longer trust the cover letter as a basis for selecting candidates, according to research from NHH.
Just months after large language models such as ChatGPT became widely available, HR departments and recruitment agencies noticed that AI was taking over much of the cover letter writing process.
As a result, the cover letter has become far less important.
Few Studies
“The interview and the human element involved in the final stage of recruitment become even more important. You cannot leave everything to AI. The signal that a fully AI-driven process sends to applicants is very negative.”
This is according to Karen Modesta Olsen, Professor at the Department of Strategy and Management at NHH.
Together with former NHH students Frida Midjord Fiksdal and Caroline Otterlei Halmrast, Olsen has studied how AI is being used in recruitment. There are still relatively few studies examining the impact of AI in recruitment processes.
Their scientific article, “Artificial Intelligence in Recruitment: What Is Happening?”, has now been published in Praktisk økonomi & ledelse (Practical Economics & Management).
The interview becomes more important
The NHH study shows that recruiters view the opportunities offered by AI positively. At the same time, the research demonstrates that the HR industry still considers it essential to keep humans “in the loop.” As the cover letter is given very little weight in the process, the job interview becomes all the more important.
Olsen and her co-authors collected insights from recruiters working both in large organizations and in recruitment agencies.
`Our interview subjects are optimistic. People who work in recruitment maintain a healthy degree of skepticism, but they are generally positive. AI can make recruitment processes more efficient. In the past, not all applications were necessarily reviewed during a recruitment process,´ says Olsen.
Consistent AI that does not discriminate
The research shows that AI has several important effects on job applications and recruitment.
“When a job advertisement clearly specifies the qualifications required, AI is consistent in its review of applications. It is also highly objective. We avoid giving an advantage to candidates who are exceptionally skilled at promoting themselves,” she says.
In some cases, AI has also highlighted applications that might otherwise have been set aside because of age. According to the NHH professor, this suggests that the technology may, in some situations, reduce the influence of such biases in the selection process.