AI is breaking hiring

You guys, we need to talk about AI slop.

Every time I’m on LinkedIn, I see the same cringey, AI-generated flavor. Posts feel too perfect, and almost clinical, but with zero authentic insights.

Doesn’t this just make your stomach turn? 🤢

This bugs me because I care about learning from experts and people who have actually done the work. But the problem is that AI makes it cheap to fake expertise.

AI made talk cheap

LinkedIn, as you probably already know, has grown beyond just a job searching platform. But to me, it still reflects a slice of the job market, and how people show up in an increasingly AI-driven world.

That’s why a new research paper caught my attention. It’s titled “Making Talk Cheap: Generative AI and Labor Market Signaling” and it explores this unsettling trend in the job market. The paper describes how large language models (LLMs) are destroying the value of job applications as a signal of a worker’s quality.

Before LLMs, taking time on an application or writing a tailored proposal meant something. It showed effort and skill. Employers generally paid more for it. With the introduction of LLMs, that signal is starting to collapse.

Now, anyone can now produce a polished application or proposal in minutes. AI continues to be the great leveler. Here were 3 findings from the paper that stood out:

1. The highest performing workers were hired 19% less often, while workers who weren’t up to snuff were hired 14% more often in a post-LLM world.
2. A worker’s ability and cost are generally positively correlated, i.e. high-ability worker → higher pay. When workers couldn't signal quality through applications, they couldn't justify higher pay. Those workers lost to cheaper, lower-ability workers. As a result, high-ability, high-cost workers saw hiring rates drop 24.1%, while low-ability, high-cost workers saw hiring rates increase 38.6%.
3. Now that companies have fewer signals for identifying quality workers, employers are having a harder time hiring. Isn’t hiring hard enough already?!

All this means the market is becoming measurably less meritocratic. Written communication is now cheap talk.

So what do we do?

If you’re looking for work, keep these three things in mind.

First, build verifiable proof of work. You need evidence that AI cannot fake. Build reputation through completed projects. Document your results and gather references that attest to real capability.

Second, avoid competing solely on price in markets where signaling has broken down. Freelance content writing on Upwork saw a 30% drop in job postings within eight months of ChatGPT's launch. Graphic design gigs fell 17% after AI tools gained traction. Basic coding tasks dropped 21%. In these markets, high-ability workers cannot differentiate through polished proposals anymore. Seek opportunities that compensate demonstrated expertise. Build portfolios that show your outcomes.

Third, consider the new costly signals. If AI makes polished writing cheap, invest in what it cannot automate. A handwritten note requires effort and intention. Showing up in person takes time. A video introduction reveals personality. These signals are harder to fake.

If you’re hiring, invest in screening that goes beyond polished applications. I’m currently testing brief paid trial projects for consulting clients. A two-hour paid assignment reveals more about capability than ten rounds of proposals. Consider skills assessments, work samples, or short-term contracts that demonstrate actual ability.

Whatever side you’re on, we need mechanisms that reveal true ability without the overhead of traditional hiring. And showing up in person requires time and intention. Yes, that coffee chat should include an actual cup of coffee! ☕

The new world

With AI-generated content flooding every platform, we’ve confused polish with potential for too long. Writing was a proxy for training and access. AI collapsed that proxy overnight.

The new scarce signal is proof of work. That includes shipped outcomes, credible human references, and reproducible results.

Portfolios are the new cover letters. Show evidence of what you can do. The best evidence also tends to show your humanness through your character, humor, or other unique traits.

That’ll say a lot than an AI-generated cover letter, that’s for sure.