Asian Journal of Economics, Business and Accounting

Increase in the integration of AI tools into job applications has led to the transformation of hiring processes and job interviews in the modern time. Such a transformation has, however, created advantages and efficiency gains for candidates on the one hand, and major ethical challenges for HR professionals and recruiters on the other hand. This research therefore examines the impact of AI-generated or enhanced resumes and AI-assisted interview processes on candidates’ evaluation authenticity and integrity of recruitment. The article adopted the narrative literature review approach. Published articles and industry anecdotes were gathered and analyzed for this study. Also, analytical reasoning was integrated with signaling theory concepts (Spence, 1973), AI use ethics, and literature on organizational trust. This article also highlights the ability of AI to generate human-like responses, thereby raising concerns about trust erosion, digital privilege and surface-level evaluation and assessments. Relying on evidence from case studies, testimonies from recruiters and academic research, the study presents the analysis of ethical boundaries between acceptable AI use and assistance and deceptive AI use and practices. The study also highlights the limitations of AI-detection tools, while proposing practical solutions, including skills-based assessments and hiring, proctored coding, HR and recruiters’ training, policies on AI use and transparency and organizational/industrial collaborations. The study proposed a pragmatic and sector-sensitive approach to hiring, thereby maintaining an appropriate balance between innovation and integrity as well as protection of fairness, while ensuring continuous adaptation to advancement in technology.