Rise of AI in Recruitment Creating Trust Gap Between Employers and Jobseekers, Study Finds

glenn-carstens-peters-npxXWgQ33ZQ-unsplash-1.jpg

Artificial intelligence is rapidly transforming recruitment across the UK, but a growing trust gap is emerging between employers and candidates as both sides increasingly rely on technology during the hiring process.

New research from Omni RMS, based on a survey of 739 UK candidates, reveals that nearly half of jobseekers are now using AI tools when applying for roles, while some employers are also using automated recruitment technologies. However, despite widespread usage, many candidates remain cautious about AI-led hiring decisions, highlighting the need for greater transparency and human oversight.

AI Adoption on Both Sides

The study found that 47% of UK candidates have used AI tools in their job applications, primarily to tailor CVs, draft responses and prepare for interviews. Meanwhile, 34% of jobseekers reported experiencing AI being used by employers during the hiring process.

Employer adoption is also rising sharply. According to the CIPD Resourcing and Talent Planning Survey 2024, supported by Omni RMS, 78% of organisations increased their use of recruitment technology in 2023, with 31% now using AI or machine learning in hiring, up from just 16% in 2022.

Among organisations already using AI, 66% reported improved hiring efficiency, while 62% said it increased the availability of workforce planning data and 59% reported improved performance in resourcing teams. Despite these benefits, nearly a quarter of organisations, 23%, are now attempting to monitor or limit the use of generative AI by candidates, highlighting growing concerns around authenticity and candidate evaluation.

At the same time, labour market challenges persist. While 84% of organisations attempted to fill vacancies in 2023, nearly two-thirds, 64%, reported difficulties attracting suitable candidates.

A Growing Trust Gap

While AI adoption continues to rise, confidence in AI-led recruitment remains limited. The research found that 42% of candidates trust human-led recruitment more than AI-assisted processes, suggesting that technology alone cannot replace the value of human interaction in hiring.

Candidates identified human oversight as the most important factor for building confidence in AI-assisted recruitment, with 33% citing it as essential. Clear explanations of how AI is used were considered important by 26% of respondents, while 17% highlighted the need for greater transparency around how their data is handled. These findings suggest that, although candidates are comfortable using AI to support their own applications, they remain cautious when employers rely too heavily on automated decision-making

Generational Divide in AI Attitudes

The research also revealed a generational divide in attitudes toward AI in recruitment. Gen Z candidates aged 17 to 25 were the most likely to withdraw from a job application if they believed AI was being overused, with 36% saying they would consider doing so. However, this group also reported the highest personal use of AI tools, with 57% using AI in their applications, highlighting conflicting expectations.

Older generations showed greater tolerance, particularly when they were invested in a role or organisation. More than half of candidates aged 56 to 65 said their reaction to AI overuse would depend on the role or organisation, while 35% of those aged 46 to 55 and 36% of candidates aged 36 to 45 expressed similar views. Across all age groups, a notable proportion of candidates remained unsure about how AI use would influence their decisions, suggesting attitudes toward recruitment technology are still evolving.

Traditional Factors Still Drive Job Searches

Despite the growing influence of AI, traditional factors remain the primary drivers of candidate decision-making. Salary and benefits ranked as the most important factor for 49% of candidates when searching for a new role, closely followed by flexible working at 41%. Hybrid or remote working options were important for 29% of candidates, while 28% prioritised career development opportunities.

Flexible working has increased significantly in importance compared with previous years. Omni RMS’s 2023 Modern Candidate Report found that only 30% of candidates prioritised flexible working, compared with 41% in the latest research, suggesting the lasting impact of post-pandemic workplace expectations.

Candidates also highlighted frustrations with recruitment processes. Nearly half, 49%, cited long application processes as a major deterrent, while 46% pointed to poor communication. More than a third, 34%, reported difficulty finding roles relevant to their skills and career goals. These findings suggest that while AI may improve efficiency, poor candidate experience remains a significant barrier to attracting talent.

Candidates Embrace AI, But Cautiously

Among candidates using AI, 51% said they used tools specifically to improve or tailor their CVs. However, candidates expressed concern about employers relying too heavily on automation, particularly when there is limited transparency or human involvement.

Interestingly, 46% of candidates believe AI will improve the recruitment experience over the next few years, indicating cautious optimism about the technology’s role in hiring. More than half of respondents, 56%, said honest job descriptions, including clear salary information and role expectations, would increase trust in employers. Providing feedback throughout the process and simplifying applications were also highlighted as ways to improve candidate experience.

Legal and Ethical Considerations

The importance of transparency is also reflected in emerging legal risks. A landmark US case filed in 2023, Mobley v. Workday, Inc., alleged that AI screening tools discriminated against job applicants, raising concerns around compliance with employment and equality legislation.

This case highlights the need for organisations to ensure AI tools are fair, explainable and legally compliant, while carefully vetting third-party providers, as liability may ultimately sit with employers rather than technology vendors.

Balancing Efficiency and Human Judgement

Louise Shaw, Managing Director at Omni RMS, said the research highlights the importance of balancing automation with human interaction.

“The findings from the 2026 study reflect what we’re seeing across the recruitment market: AI is being used by both organisations and candidates,” she said.

“While technology improves efficiency and streamlines processes, it is also changing candidate expectations. Candidates are comfortable using AI to support their own applications, but they are more cautious when employers rely too heavily on automated decision-making. That creates a challenge for organisations.”

Shaw also noted that organisations are beginning to rethink assessment methods.

“Traditional screening methods were designed to measure logical reasoning and analytical skills, but modern AI systems can now perform these extremely well. Hiring processes will increasingly need to focus on uniquely human skills such as judgement, creativity, ethical decision-making and collaboration.”

She added that candidate experience remains critical.

“AI should be seen as an enabler rather than a replacement for human interaction. Organisations that maintain meaningful human touchpoints and clearly communicate how AI is used are far more likely to build trust and secure the talent they need.”

Building Trust in an AI-Enabled Hiring Market

The research suggests that AI adoption in recruitment will continue to grow, but organisations must carefully manage how technology is implemented. Striking the right balance between automation, transparency and human engagement will be essential to maintaining candidate trust, particularly as competition for talent remains high and candidate expectations continue to evolve.

For further insights, visit Omni RMS’s AI in Recruitment 2026 Candidate Experience Report.

The post Rise of AI in Recruitment Creating Trust Gap Between Employers and Jobseekers, Study Finds first appeared on HR News.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy