AI Is Changing What Employers Look For In Job Candidates

The shift comes as employers face a surge in applications.

Artificial intelligence (AI) is changing how employers evaluate job candidates, with a growing number of companies shifting away from traditional resumes and toward skills-based hiring as AI makes it easier to customize applications, CNBC reports.

Barb Hyman, founder and CEO of recruitment platform Sapia.ai, told the outlet that the traditional resume is “broken,” arguing that employers risk overlooking qualified candidates when they rely heavily on work histories and credentials.

“How many people are you missing out on because you’re relying on an artifact?” Hyman said.

The shift comes as employers face a surge in applications. U.K. graduate employers received an average of 140 applications per vacancy in 2025, the highest level recorded in three decades, according to Institute of Student Employers data.

At the same time, job seekers can use AI to quickly generate resumes and cover letters tailored to individual positions, making it more difficult for employers to distinguish candidates based on application materials alone.

Skills-based hiring is already gaining traction. About two-thirds of U.K. organizations have adopted the approach, according to 2026 research from recruitment firm Michael Page. Nearly 60% of candidates surveyed said they were more likely to apply for jobs defined by skills rather than traditional qualifications or career histories.

Employers are also reconsidering which abilities matter most as AI transforms the workplace.

James Broadhead, chief technology officer at AI decision-making company Taktile, told CNBC that technology has dramatically accelerated some engineering tasks. That shift has increased the importance of judgment, communication, self-reflection, and employees’ willingness to experiment with new AI tools.

Some companies are putting those abilities to the test during recruitment. Digital marketing and advertising agency PMG has graduate candidates complete practical exercises, collaborate in teams, and respond to client briefs.

“You don’t really know whether someone’s going to have the skills to do something until you challenge them to do it,” Josh Krichefski, PMG’s EMEA president, told the outlet.

“The past doesn’t tell you that.”

Hyman also said AI could help employers identify candidates from a broader range of backgrounds by reducing reliance on hiring practices vulnerable to human bias.

Still, she said, people should retain the final say. AI can help screen candidates at scale, but hiring decisions should ultimately remain with the teams that will work with the new employee.