Navigating the future of hiring and AI-generated resumes with LERs

Artificial intelligence (AI) and skills-based hiring are rapidly transforming the hiring process, from how resumes are created and submitted to how they are evaluated. While AI tools streamline the job application process for candidates, they are also overwhelming employers and Applicant Tracking Systems (ATS) with polished, but often indistinguishable, resumes with unverifiable information. As generative AI becomes more prevalent, it raises questions about authenticity, equity and trust in hiring practices.

We recently sat down with Dave Wengel, CEO of SmartResume, and Dr. Megan Workmon Larsen, director of learning experience design at Arizona State University (ASU), who shared their insights on the pros and cons of AI-enhanced resumes in today's job market. They also highlighted how tools like learning and employment records (LERs) and skills-based hiring could add value and integrity to the hiring process, promote equity and ensure that hiring remains focused on verified competencies.

From the ethical implications of AI-generated resumes to the potential of LERs as tools for inclusivity, our discussion reveals how technology impacts the road to a fairer, more efficient workforce.

How is AI changing how resumes are created, submitted, and evaluated?

DAVE: It’s foundational. Nobody likes to create a resume from scratch. Most job seekers now know that large employers rely on AI to filter, scan and prioritize applications — which has put us in this box we’re in today.

Job seekers are being encouraged to fight this battle by crafting resumes based on the job descriptions they’re applying for. They’re told on TikTok, online and everywhere else to copy and paste the job description into a generative AI tool. In seconds rather than hours, they can have a polished resume that makes them look like a great candidate.

The problem is that while job seekers think they’ve created a polished resume, ATS are now flooded with what appear to be great applications, and employers are overwhelmed. The hiring process is becoming more difficult to navigate. 

If employers can’t trust the skills listed on resumes, they won’t adopt skills-based hiring practices, so it’s critical that we address this issue.

MEGAN: Generative AI offers candidates tools for personalized preparation and skill development. However, it often homogenizes or flattens resumes in the hiring process, making differentiation challenging for hiring managers. Automated resumes often follow a specific language and approach, making it fairly easy to identify which ones were generated by AI.

The case study we discussed during the Human Potential Summit is a great example. As a hiring manager and someone who studies AI, I received 2,309 applications for 20 open student employee positions. Almost all the application materials were identical — they had taken the job description, run it through ChatGPT or another Large Language Model, used an engineering resume template, and submitted an AI-generated cover letter.

When all the materials look the same, it creates challenges for inclusive hiring practices. How do you identify skill development when you can’t differentiate candidates? How can hiring managers verify the authenticity of candidate materials? The challenge is finding candidates who’ve used AI to enhance their materials, which is great, while also identifying the skills and authenticity you’re looking for.

In your view, how might tools like LERs provide a reliable way to verify skills and competencies and support more transparent hiring?

DAVE: With LERs, job seekers have the opportunity for a third party, such as ASU, to stand behind them and say, ‘Yes, he or she has demonstrated competency in this area,’ or ‘They have completed this course, and here’s what it means.’

I expect employers will increasingly want to see resumes with third-party validated, verified achievements. They’ll also want to give job seekers a space to self-attest to skills or experiences that can’t be formally certified. LERs present a real opportunity for more efficient hiring. 

For digital credentials to truly scale, we’ll need to make it easier for ATS to ingest deeper data. That’s where next-generation standards like the LER Resume Standard (LER RS) come into play. These standards will allow ATS platforms to ingest a resume and access its metadata.

MEGAN: ASU's charter emphasizes inclusive and lifelong learning. LERs advance ASU's commitment to inclusive, lifelong learning by showcasing verified skills and achievements beyond degrees. They allow individuals to demonstrate their capabilities and promote lifelong learning by encouraging the continuous addition of new skills. It’s like building a ‘passport of skills’ over time, showing growth and adaptability.

LERs play a critical role in creating equitable pathways, supporting data-driven hiring, and adapting large institutional curricula to ensure students are prepared for the realities of the workforce.

It would be ideal to have tools that allow us to scan for portfolios, credentials and verified skills — details that provide real insights into what each candidate brings to the table. While some AI content may be inaccurate, much of it reflects valuable skills we want to recognize.

AI tools can sometimes unintentionally reinforce biases. How can LERs and skills-based hiring help reduce biases and create more equitable pathways for non-traditional candidates?

DAVE: At SmartResume, we’re big believers in the idea that employers can, should and want to do more to combat unconscious bias in hiring.

When you look at platforms like LinkedIn, you first see the person’s profile picture. Decades of academic research show that unconscious bias impacts who people hire — and that’s a real risk. We obfuscate the individual's identity. When an employer first looks at a candidate in SmartResume, they don’t see a profile picture or a name. Instead, they see a SmartResume featuring verified skills like those from ASU, which they primarily use to decide. 

MEGAN: The technical answer is LERs transform raw data into structured, actionable insights that empower more equitable and informed decision-making. The more exciting answer is that LERs help students articulate how they see themselves and what story they want to tell.

LERs also incorporate feedback loops into the hiring process, broadening who you’re considering and allowing for unexpected matches. Skills and LERs may not define exact pathways, but they act as compasses for learners, helping them articulate their stories and envision their next steps. 

Are there emerging AI practices, trends, or technologies you see potentially enhancing resume accuracy and alignment with employer needs?

DAVE: I do think there will be a need for third-party skills assessments to demonstrate competencies, especially when the ability to do so directly isn’t available or is too time-consuming.

What’s exciting from a technology perspective is the advent of Open Badges 3.0, which allows evidence to be embedded directly into a badge or a LER. For example, if I’m hiring a welder, instead of asking them to come down to the shop to demonstrate their skills, they could embed a video of their welding into the evidence section of a digital badge.

The technology behind what can be included in an LER is accelerating rapidly. For employers, it’s all about how it can save them time finding suitable candidates. Tools that enable quicker demonstrations of skills and competencies will be highly enticing. And the more employers adopt LERs, the more job seekers will want to use them. 

MEGAN: Addressing digital divides is essential to ensuring equitable access to verified credentials, regardless of financial barriers. How do we avoid a two-tiered or even three-tiered system where access to verified credentials depends on whether someone can afford it? How do we ensure accessibility so that everyone can showcase their potential, skills, and experience?

That’s an ethical question we must continually revisit, especially as technology evolves and access remains uneven for many job seekers. Upholding rigorous ethical standards is essential to ensure equity and foster inclusive and transformative progress for all individuals navigating the future of work.