After nearly two years of widespread AI adoption in recruitment, tech talent isn’t buying it. A new report from Dice, a DHI Group brand, reveals that while AI has boosted efficiency for recruiters, it has triggered a trust crisis among candidates—one that could cost companies their best prospects.
According to Dice’s The Trust Gap in Tech Hiring survey of U.S. tech professionals, 68% distrust fully AI-driven hiring processes, while 80% trust human-driven approaches. Nearly a third of respondents say frustrations with hiring have them considering leaving the tech industry altogether.
The message is clear: efficiency gains mean little if candidates feel alienated by the process.
Candidates vs. Employers: A Growing Perception Gap
Employers are bullish. According to Insight Global, 98% of hiring managers say AI has improved efficiency. Candidates, however, see AI as opaque, exclusionary, and prone to overlooking qualified applicants. Dice’s findings underscore the divide:
-
92% believe AI tools miss qualified candidates who don’t optimize for keywords.
-
78% feel pressured to exaggerate their skills just to get noticed.
-
65% tweak resumes to beat screening tools.
-
Women in tech are 2.5 times more likely than men to consider leaving the industry due to these frustrations.
Paul Farnsworth, President of Dice, calls the issue one of perception, not technology: “When professionals feel like they’re submitting applications into a black hole with no human oversight, that creates distrust. Companies succeeding today are transparent about their process and maintain human connection points throughout the hiring journey.”
The “Gaming Arms Race”
Dice’s report points to a troubling feedback loop. Candidates are now gaming AI systems to stay competitive: stripping resumes of personality, cramming in keywords, and even using AI to mass-apply for jobs they know little about.
The irony? These tactics make authenticity a disadvantage, pushing hiring into a cycle of deception that hurts both employers and applicants. Without AI, recruiters drown in applications. With AI, candidates distrust the system and overcompensate—feeding the very volume problem AI was meant to solve.
Hybrid Models Offer a Path Forward
The solution, Dice argues, isn’t ditching AI, but balancing it with human oversight. Just 14% of tech pros trust fully automated hiring, compared to 46% who trust hybrid models that pair AI with transparent human checkpoints.
The most effective trust-builders, according to candidates, are:
-
Clear job requirements (53%)
-
Timely communication (49%)
-
Guaranteed human review (46%)
-
Salary transparency upfront (43%)
-
Clear evaluation criteria (40%)
Transparency is no longer optional—it’s the price of admission for attracting top talent.
Implications for Recruiters and Staffing Firms
For staffing agencies and recruiters, the trust gap presents a competitive opening. By emphasizing human expertise, transparent processes, and candidate advocacy, agencies can position themselves as trusted intermediaries while helping employers protect their brands.
The risk for employers who double down on opaque AI is steep: shrinking applicant pools, alienated candidates, and reputational damage in a labor market where trust is currency.
The Bottom Line
AI in hiring is here to stay—but so is candidate skepticism. The winners will be those who blend AI efficiency with human judgment and communicate openly about how the process works. Companies that ignore the trust gap may find their best talent isn’t just ghosting them—it’s leaving the industry entirely.
Join thousands of HR leaders who rely on HRTechEdge for the latest in workforce technology, AI-driven HR solutions, and strategic insights
Business Wire, a Berkshire Hathaway company, is the global leader in press release distribution and regulatory disclosure. Public relations, investor relations, public policy and marketing professionals rely on Business Wire for secure and accurate distribution of market-moving news and multimedia. Founded in 1961, Business Wire is a trusted source for news organizations, journalists, investment professionals and regulatory authorities, delivering news directly into editorial systems and leading online news sources via its multi-patented NX network. Business Wire’s global newsrooms are available to meet the needs of communications professionals and news media worldwide.
