Tailwinds and Drivers of AI Tools for Finding a Job
Note: This post is an adaptation of a brief talk I gave at an Indeed ‘AI in HR’ event (put on by the Indeed.com ventures team) themed around “Job Seeeker Tools”.
AI tools are helping job seekers find a job
Looking for a job in the age of Gen AI is markedly different than it was a few years ago. A plethora of tools exist that will help write a resume, apply to jobs, prep for an interview (or be a coach during the interview), and be a coach after getting hired. The rise of these tools is changing the landscape for job seekers and hiring managers. There are a couple of trends driving this change.
Covid shocks accelerated hiring, especially in the technology sector. The rate of hiring expanded, driving a tight labor market and the period of time known as “The Great Resignation”. When interest rates started rising, things changed.
The “Great Resignation” has transitioned to “The Great Stay”. People are quitting their jobs at lower rates and staying in jobs longer, affected by uncertainty in the labor market. This is particularly noticeable in the technology sector.
Technology hiring spiked during the 2021/2022 baseline. People in technology jobs hopped at high rates. People also started entering the technology labor market at higher rates, and many “get a job in technology” startups were created. This trend was driven by ZIRP era policies.
Venture capital surge coincided with tech hiring and has continued to decline since the 2021 peak
Low interest rates, financial market bubbles, and stimulatory fiscal policies all lead to significant investment in venture capital. This helped support the boom in technology hiring. When the tech bubble burst, it led to the drop in hiring, and the increase in technology layoffs. The tech bubble burst also coincided with the launch of a new technology (note: the decline of one tech is often the birth of another).
Global Search Interest: AI Interview and AI Resume
ChatGPT brought awareness of Generative AI tech to the general public. This was true for tools for finding a job, too. AI-driven resume tools climbed the fastest both because everyone needs a resume and because ChatGPT existed in a text-based interface.
The technology that started powering better audio and video emerged later, which is why we’re seeing a different adoption pattern. The latency and quality in these areas continues to improve; I expect these to become more commonplace. For now, we’re seeing tools to help people find a job everywhere.
Follow up note: If you’re an entrepreneur building in these areas, please feel free to reach out to me and let me know.