Gen Z Leverages AI in Job Interviews Amid Rising Graduate Unemployment

Gen Z Leverages AI in Job Interviews Amid Rising Graduate Unemployment

3 Min Read

The class of 2025 entered a challenging entry-level job market, the toughest in five years, prompting many to use AI tools during job interviews. Startups are capitalizing on this trend. Whether it’s considered cheating or a smart move depends on perspective, though the trend’s statistics are clear.

By the end of 2025, unemployment among college graduates aged 22 to 27 rose to 5.7 per cent, above the national rate of 4.2 per cent, according to the Federal Reserve Bank of New York. Underemployment reached a high of 42.5 per cent. The tech sector, once a promising field, lost approximately 245,000 jobs in 2025, with another 59,000 lost in early 2026, data from Layoffs.fyi and TrueUp shows.

Graduates entering this market saw their predecessors quickly hired, promoted, and laid off at tech companies like Meta, Amazon, and Google within 18 months. They learned that competence and loyalty weren’t guarantees and came equipped with the technology they learned in college.

A new startup, LockedIn AI, announced DUO—a service providing real-time AI transcription and guidance during interviews—highlighting a generational resilience trend but essentially promoting its product. Entrepreneur Kagehiro Mitsuyami launched both LockedIn AI and Final Round AI, facing scrutiny over potentially AI-generated reviews and visible software during interviews. A Gartner survey revealed that six per cent of job seekers admitted to interview fraud, while 59 per cent of hiring managers suspect AI use for misrepresentation.

The demand for these tools is rising as conditions worsen. The National Association of Colleges and Employers noted a decline in the job market from “good” to “fair,” with stagnant hiring projections. With low interview invitation rates, candidates are tempted to use any available advantage.

The pro-AI interview argument hinges not on fairness but on tech companies’ double standards. Google’s CEO, Sundar Pichai, stated in 2025 that 30 per cent of new code used AI assistance, up from 25 per cent earlier. Tech giants encourage AI use for efficiency, and AI-powered systems evaluate resumes. The hiring process is automated except for the candidates’ involvement.

Graduates, trained to be AI-savvy, face interview scenarios where using AI seems logical but is frowned upon. These companies expect them to use AI tools effectively once employed.

While AI-utilization arguments hold weight, distinctions exist: using AI for coding vs. answering personal interview questions. The latter, ideally, measures candidates’ knowledge and thought processes, and using AI could undermine this goal.

Companies are adapting to these challenges. In-person interviews increased from 24 per cent in 2022 to 38 per cent in 2025 to combat AI-assisted fraud, and new evaluation methods are emerging.

The key question is if traditional interviews effectively assess candidates in an AI-driven job market. If evaluating actual job performance is crucial, banning AI during assessments seems counterproductive. If assessing raw cognitive abilities is the goal, AI assistance negates this purpose. Current interviews attempt both, leading to dissatisfaction.

The class of 2025 didn’t create this issue but inherited a transformed job market influenced by overhiring, cost-cutting, and an AI revolution creating and eliminating opportunities simultaneously. Their use of AI is a rational response in a system that repeatedly told them AI is indispensable. The system’s objection to their logical response demands scrutiny.

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