Two thirds of employers say the overuse of artificial intelligence to craft job applications is misrepresenting the abilities of young graduates.

The number of companies concerned about the practice has surged since last year, suggesting AI has become a commonly used tool among young people.

The Institute of Student Employers found that 67 per cent of employers were concerned about AI skewing the perceived abilities of graduates, and 66 per cent were worried about its impact on applications from school and college leavers. Last year the figures were 48 per cent of graduates and 52 per cent of school and college leavers.

The institute’s annual development survey report said: “As AI tools become more widely available employers appear increasingly concerned about whether candidates’ applications, assessments or interview responses fully reflect their individual skills and capabilities. This raises broader questions about the reliability of traditional selection methods and highlights the need for organisations to adapt recruitment processes to account for the growing use of generative AI.”

Some graduates have previously complained that companies themselves are overusing impersonal AI-led recruitment practices, leading to dispiritingly large volumes of rejections.

More than half of employers are concerned about the professional conduct of young graduate hires, the research also shows. It was raised as an issue by 52 per cent of companies, which said that they had needed to increased the induction time devoted to professional conduct training and supporting the transition from education to the workplace.

The institute said this showed “growing recognition that workplace norms, behaviours and expectations require more explicit support at entry”, adding that adapting to the workplace, the awareness of wider context, and motivation and self-awareness were among the areas where employers frequently rated graduates as below expectations. Development priorities for companies’ new hires included working with others, problem solving and decision making.

The institute conducts an annual student development survey. This year it polled 144 organisations on hiring for entry-level jobs.

Most employers said they were “broadly satisfied” with the foundational skills of new staff but 35 per cent rated graduates as “below expectations” in adapting to workplace demands, compared to the 31 per cent that said the same about school and college leavers. Forty two per cent identified the quality of candidates as a key concern. Employers also mentioned “readiness gaps” in graduates in their motivation and self-awareness, as well as wider contextual understanding, planning and organisational abilities. 

Stephen Isherwood, joint chief executive of the institute, told Times Higher Education: “Employers are broadly satisfied with the skills and capabilities of their graduate hires but there are growing concerns over how they are able to adapt to the demands of work and the professional environment. 

“Given the expected changes to the nature of entry-level roles, hiring adaptable candidates will remain a priority and likely a persistent challenge. More attention is being given to support the transition from education to the workplace during inductions, but these findings reinforce the importance of work experience and embedding these capabilities across the curriculum.”

Most employers believed AI would have an impact on graduate roles but that this would be limited in scope.