Recruiters are turning to artificial intelligence-enabled screening to manage candidate volume and resource constraints. Fifty-eight per cent of hiring managers in a report said AI tools have had a positive impact on hiring, with the most common benefits concentrated in early-stage efficiency, including filtering low-quality applications and CV or application screening.
However, The 2026 AI in Hiring Report by hiring software company Greenhouse found more fraud risks coming through the pipeline.
“Many recruiters feel like misrepresentation is on the rise — and increased AI use by candidates may be part of the reason,” the report said. “Eighty-six per cent have caught or suspected candidate fraud in the past 12 months, and an additional 5% believe it may be happening undetected.”
When asked what they have observed in the last 12 months, recruiters most often cited fake references (51%), CV exaggeration (35%), and candidates using AI during interviews (32%). In addition, the report said, recruiters observed candidates in different time zones than originally stated (28%) and a mismatch between the applicant and the person being interviewed for the role (25%).
Identity deception tactics such as interview stand-ins, location misrepresentation, and deepfakes can have serious consequences, the report noted, enabling unauthorised access to systems, data, or regulated environments under false pretences.
More than half of recruiters (56%) believe AI makes it easier for candidates to cheat, fake credentials, or misrepresent themselves.
The report surveyed over 1,500 job seekers and over 500 recruiters and hiring managers in Ireland, Germany, and the UK.
The candidate experience
Along with recruiters, most candidates (78%) are using AI to keep pace with the hiring process. They are using those tools to tailor their CV or application materials at least some of the time, according to the report.
The motivation for candidates is mostly practical in nature. Amongst candidates who use AI, 59% said it saves time and 41% said it improves response rates. For some, it is seen as a competitive necessity: 36% use it because other candidates are doing so, and 32% report using it to level the playing field.
But, the report added, responses from candidates indicate that AI-enabled fraud is a bigger risk than recruiters realise. Forty-two per cent of candidates said they had used prompt injections — hidden instructions that can, for example, instruct AI systems to advance a job application regardless of qualifications — and another 28% said they would consider doing so.
However, only 28% of hiring managers said they have spotted prompt injections in the past year.
AI as a means of deception may extend beyond prompt injections alone, the report warned. More than a third (36%) of candidates said they have used AI to modify their appearance, background, or voice, and 21% said they would consider using AI to alter how they appear in video interviews in the future.
Despite fraud concerns, most hiring managers (73%) are confident that candidates’ abilities match what they present during interviews.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
