The growing use of artificial intelligence (AI) in hiring is creating a crisis of confidence among jobseekers, according to a series of Gartner surveys. While 52% of candidates believe AI is screening their applications, only 26% trust the technology to do so fairly.

This disconnect is fuelling a deeper mistrust between employers and candidates, creating a two-way credibility gap that is reshaping the recruitment landscape. A first-quarter 2025 Gartner survey of nearly 3,000 job applicants revealed that 32% fear AI could wrongly reject their applications, while 25% said their trust in employers declines when they know AI is part of the evaluation process.

Ironically, while candidates fear AI's impact, many are also using it to gain an edge. In a late-2024 survey, 39% of candidates said they used AI during the application process, most commonly to draft résumés (54%), cover letters (50%), and even write answers to assessment questions (29%).

“It’s getting harder for employers to evaluate candidates’ true abilities, and in some cases, their identities,” said Jamie Kohn, senior research director, in the Gartner HR practice. “Employers are increasingly concerned about candidate fraud, which creates cybersecurity risks that can be far more serious than making a bad hire.”

This concern is not theoretical. A 2Q25 Gartner survey found 6% of job candidates admitted to interview fraud, such as impersonating another person or having someone pose as them. Gartner predicts that by 2028, one in four candidate profiles worldwide could be fake.

Uncertainty around AI’s role in hiring may also be making jobseekers more cautious. Candidate acceptance rates have dropped sharply, from 74% in Q2 2023 to just 51% in Q2 2025. This suggests that as trust in the hiring process erodes, jobseekers are becoming more selective or skeptical about offers they receive.

Adding to the tension, only 50% of candidates said they trusted the legitimacy of the jobs they were applying for, underlining the growing skepticism permeating the job market.

Internal trust also at risk as employee engagement declines

While mistrust at the hiring stage is alarming, it’s part of a broader issue, trust erosion within organisations themselves. A separate Gartner report from April 2025 found that a lack of trust in leadership is negatively affecting employee engagement, discretionary effort, and overall organisational performance.

“Trust is crucial for organisations’ success,” said Ned Feuer, senior director at Gartner. “Employees who trust senior leaders are significantly more engaged.”

To strengthen employee trust, Gartner recommends a few strategic actions for HR leaders:

• Assess and address trust issues through feedback tools and transparent communication;
• Encourage transparency in leadership decision-making;
• Facilitate open dialogue between employees and senior leaders; and
• Invest in leadership development, focusing on emotional intelligence, communication, and ethical decision-making.

Gartner's data shows that employees are 4.3 times more likely to trust leaders who explain their decisions and 6.5 times more likely to trust those who genuinely care about their concerns. As CEOs focus on growth, trust-building must become a deliberate leadership priority to maintain workforce stability in a fast-changing landscape.

Candidates still selective despite fewer offers

Even as the labour market softens, candidates remain highly selective. A June 2025 Gartner survey found that 44% of candidates received multiple job offers in their most recent search, down from 72% in early 2023. Meanwhile, 35% backed out after accepting an offer, a notable drop from 48% in 1Q24.

Candidates are prioritising higher compensation (53%), career growth (47%), and work-life balance (45%) over traditional benefits. Gartner warns that employers must better understand evolving candidate priorities to attract and retain top talent in today’s uncertain job market.

“We are seeing signs of a softening labour market, with fewer candidates getting multiple offers or backing out after accepting a job,” said Caroline Ogawa, director, research in the Gartner HR practice. “Even with candidates seeing less opportunity in the market, organisations are still struggling to attract talent, as candidates get more selective about the jobs they pursue.” 

HR must prepare for shifting workplace dynamics

Looking ahead, Gartner’s January 2025 report urges HR leaders to prepare for seismic shifts across the workforce. These include an intensifying expertise gap due to mass retirements, the restructuring of companies for AI integration, and a rising need for communication tools like “nudgetech”. As employee expectations evolve and AI reshapes roles, HR will need to adapt quickly to remain competitive and meet emerging talent risks head-on.

To tackle candidate fraud and rebuild credibility in the hiring process, Gartner recommends a multi-layered mitigation strategy:

Clear communication: Define acceptable AI use and be transparent about fraud detection methods and legal consequences.

Robust assessments: Implement anti-cheating tools and in-person interviews. Notably, 62% of candidates said they are more likely to apply to roles requiring in-person interactions.

Ongoing validation: Extend identity verification and anomaly detection beyond initial screening to cover the full hiring lifecycle.