83% of Australian firms receive AI-generated CVs with errors

A new report has revealed that 83% of Australian companies have received AI-generated resumes containing false information.

The 2024 Global Workforce Report by Remote, a global HR platform, indicates that 32% of Australian hiring leaders frequently encounter AI-created resumes with inaccuracies.

The rise of these resumes is perceived to contribute to more under-qualified candidates entering the recruitment process. More than half of the companies surveyed believe this trend results in a significant issue for business operations, with 64% noting its prominence and over a quarter rating it as very significant.

The challenge comes amidst difficulties in finding candidates with the appropriate skill sets, a problem identified by 31% of respondents as the biggest hiring challenge. The report, which collates data from over 4,000 business leaders across ten countries, highlights the global nature of this issue, with Australia experiencing the highest rate of occurrence, followed by Germany at 77% and the United States at 71%.

The prevalence of AI-assisted resumes is higher in remote work settings (82%) compared to hybrid or office-based environments, both at 71%.

Senior and mid-level job positions are the most frequently targeted by these AI-generated resumes, with occurrences at 79% and 77%, respectively.

The report also points out that larger companies are more susceptible to receiving AI-generated resumes.

While only 56% of companies with 10-50 employees flagged it as an issue, this figure rises significantly to 83% for companies with 500-1,000 employees. Sectors most affected include sales, media and marketing (90%), HR (81%), architecture, engineering and building (81%), and education (77%).

Companies known for hiring beyond their local regions are also more likely to receive fake or automated resumes compared to those sourcing candidates locally.

Anastasia Pshegodskaya, Director of Talent Acquisition at Remote, noted the mutual reliance on AI technologies by both applicants and businesses. "Two years since generative AI hit the mainstream, we're seeing an increasing number of applicants using AI not only to enhance their resumes but also to support them during the interview process. In turn, businesses are relying on AI as well, to manage the thousands of applications they sometimes receive for a single role and to streamline the overall hiring process," she said.