Has AI Broken the Hiring Process?

Debra Miller • August 19, 2026

Why More Applications Are Making the Right Candidates Harder to Find


AI was supposed to make hiring easier. In many ways, it has.


Candidates can create resumes faster, tailor applications to individual jobs and prepare for interviews more efficiently. Employers can screen applicants, write job descriptions, identify potential candidates and automate administrative tasks that once consumed hours.


Yet something unexpected is happening.


Hiring may have become more efficient, but identifying candidates with the right skills and experience is becoming more difficult.

In 2026, 67% of HR leaders say reviewing AI-generated applications is slowing their hiring process. Another 65% of hiring managers say AI-enhanced resumes have made it more difficult to verify candidates' actual skills.


That's an interesting contradiction.


Technology has made it easier than ever to apply for a job. It hasn't necessarily made it easier to hire the right person.


The Application Process Has Evolved


For years, one of recruiting's biggest challenges was generating enough candidate interest. Today, many employers have the opposite problem.


Candidates leverage AI to identify openings, tailor their resumes to job descriptions, draft cover letters and submit applications at a speed that simply wasn't possible a few years ago.


Recent research found that 80% of job seekers use AI during their job search and 86% say it helps them submit more applications each week.

For employers, that can mean hundreds of applications arriving for a single position.


More applicants create a larger candidate pool, but that doesn't necessarily mean more qualified candidates.

 

How Employers Take the Interview Process to the Next Level


Research released this year found that only about one-third of employers are highly confident that resumes accurately reflect candidates' abilities, yet two-thirds still use the resume as their first screening tool.


A resume can mirror the language in your job description. A cover letter can speak directly to your company's priorities. An applicant can appear, at least on paper, to match nearly everything the hiring manager is seeking.


But the fundamental hiring question remains:


Can this person actually do the job?


Strong interviews should go beyond predictable questions and give candidates an opportunity to demonstrate how they think, make decisions and apply their experience. A combination of behavioral, situational and technical questions can help employers assess different dimensions of capability.


Behavioral questions explore what a candidate has actually done. Instead of simply asking about strengths, ask for examples of how they managed conflicting priorities, solved a difficult problem or responded when something didn't go as planned.


Situational questions reveal how someone thinks. Give the candidate a realistic challenge they might encounter in the position and ask how they would approach it. Their response can provide insight into judgment, decision-making and problem-solving.


Technical questions help validate whether the candidate has the functional expertise required for the role. For a Controller, for example, that might mean asking them to walk through how they've managed a complex month-end close across multiple entities.


The objective isn't simply to confirm a list of skills or credentials. It's to understand how a candidate applies their knowledge and experience in real-world situations.


More Technology Makes Relationships More Valuable


There is another consequence of an increasingly automated hiring market.


The candidates employers most want to hire may become more difficult to identify in the application pile.


An experienced Controller who is performing well at another company may never apply. Neither may the manufacturing leader who has successfully scaled three facilities, the HR executive who has led an integration or the accounting professional with exactly the technical background your company needs.


They're working. They're busy. And they may not be actively looking for another job.


No amount of application automation solves that problem.


Identifying talent within the passive candidate pool requires market knowledge and experience. It means understanding and validating a candidate's background, starting the conversation and knowing what might make an opportunity compelling enough for someone to consider leaving a position where they're already successful.


That's recruiting.


AI Is Exposing the Gaps in Hiring


For years, recruiting was often measured by activity.


  • How many candidates did we find?
  • How many resumes did we receive?
  • How many people entered the pipeline?


AI can dramatically increase all three. But those numbers don't necessarily tell you whether your hiring process is working.


The better question is:


How quickly can we identify the people who genuinely have the experience, capability and motivation to succeed in this position?


Doing that requires clarity in three areas:


  • An accurate definition of the role. Responsibilities, expectations and required capabilities should reflect what the organization actually needs today.
  • Alignment among key stakeholders. Everyone involved in the hiring decision should understand the role, priorities and acceptable tradeoffs.
  • An understanding of the candidate market. Employers need to know what talent is available, what the market demands and where flexibility may be necessary.


Hiring processes that rely heavily on keyword matching, resume screening and applicant volume aren't always the best way to identify exceptional people.


AI has simply magnified the gaps.


When everyone can optimize for the system, employers need a better system.


The companies that succeed won't necessarily be the ones using the most recruiting technology. They'll be the ones that combine technology with something much harder to automate:


The clarity to define what they need, the market knowledge to know where to find it and the judgment to recognize the right candidate.



At KCG Search, we believe technology can make recruiting more efficient, but it doesn't replace the relationships and human expertise required to identify exceptional talent. Our goal isn't to send the most resumes. It's about understanding what our clients need and finding the people capable of delivering it.




Man looking at a gray wall with three white question marks
By Jen Caison September 2, 2026
Should you change jobs in 2026? Learn when to make a career move, what to consider before leaving and how to evaluate your next opportunity.
Magnifying glass highlighting a candidate among a group
By Jen Caison August 26, 2026
Hiring through the end of 2026? Learn how to attract skilled candidates, recruit passive talent and improve your hiring process in a selective market.
Executive leadership boardroom with city skyline.
By Debra Miller March 5, 2026
Retention challenges begin long before employees leave. KCG’s Retention Strategy Framework identifies early misalignment to stabilize workforce continuity.
Quiet Cracking
By Debra Miller March 4, 2026
Discover how Quiet Cracking impacts engagement, retention, and culture—and learn proactive steps employers can take to reengage and retain top talent.
Reskilled, Upskilled, or Relaced
By Debra Miller March 3, 2026
Learn how to balance reskilling, upskilling, and strategic hiring to build a future-ready workforce equipped for AI, automation, and digital transformation.
Building trust
By Debra Miller March 2, 2026
Discover how authentic leadership, visibility, and connection build trust, strengthen culture, and shape the modern workplace in 2025 and beyond.
Talent Intelligence 2026
By Debra Miller March 2, 2026
Discover how finance leaders use talent intelligence and predictive recruitment metrics to anticipate hiring needs and build data-driven teams in 2026.
By Jen Caison March 1, 2026
Finance leadership has expanded far beyond traditional financial stewardship. CFOs and finance teams are no longer responsible only for reporting results or maintaining financial discipline. Increasingly, they are expected to help leadership teams interpret data, evaluate risk, and guide decisions that shape the business's direction. As organizations grow more complex and data-driven, finance occupies a unique position within many companies. It sits at the intersection of operations, strategy, and capital allocation. In many organizations, finance has become the function that translates information from across the business into insight that leadership teams can act on. Research reflects this shift. According to the Deloitte CFO Signals Survey, more than 60% of CFOs report being directly involved in shaping corporate strategy , demonstrating how finance leadership has moved beyond reporting responsibilities into broader organizational decision-making. Across industries, several priorities consistently define the finance agenda for leadership teams. AI and Automation Are Reshaping Finance Operations Artificial intelligence and automation are transforming how finance organizations operate. What began as automation of routine tasks is evolving into systems that help finance teams generate insight and support decision-making across the organization. Automation is reducing the time spent on activities such as reconciliations, reporting preparation, and data aggregation. As routine work becomes increasingly automated, finance leaders can focus more attention on analysis, forecasting, and strategic guidance. The challenge for finance leaders is not simply adopting new technology, but determining where automation creates meaningful value and ensuring teams have the capabilities to use these tools effectively. The CFO Role Continues to Expand Strategically The CFO's role extends well beyond financial oversight. Finance leaders frequently play a central role in conversations that shape organizational strategy, investment decisions, and operational priorities. Because finance sits close to the flow of financial and operational data, CFOs often serve as interpreters of performance signals for leadership teams. Their ability to translate financial information into business insight allows executives to make more informed decisions about how the organization allocates resources and pursues growth. In many organizations, CFOs are helping guide decisions that affect: Long-term growth planning Capital allocation and investment prioritization Operational strategy and performance improvement Enterprise risk management Finance Transformation Is Accelerating Many organizations are investing heavily in finance transformation initiatives designed to improve visibility into financial performance and strengthen the connection between financial data and operational decision-making. Modern finance functions increasingly rely on integrated systems that provide faster access to information and deeper insight into how the organization is performing across functions. Organizations are investing in capabilities such as: Cloud-based ERP platforms Automated reporting systems Integrated financial planning tools Real-time analytics dashboards These systems allow finance teams to move beyond static reports and develop clearer insight into how financial performance connects to operational outcomes. Finance Talent Is Becoming a Strategic Constraint As finance organizations evolve, the capabilities required within finance teams are changing as well. CFOs increasingly need professionals who combine strong accounting foundations with analytical, technological, and strategic skills. Deloitte indicates that 60% of finance leaders say hiring professionals with AI and data capabilities has become a major priority for finance organizations . Organizations increasingly seek finance professionals who bring a combination of technical expertise and business understanding, including: Strong accounting and financial fundamentals Systems and technology proficiency Analytical problem-solving capability The ability to collaborate effectively with business leaders As finance organizations continue to evolve, building the right team becomes just as important as implementing the right systems. Financial Discipline Remains Essential Even as organizations invest in new technologies and pursue operational transformation, financial discipline remains a central responsibility for finance leadership. CFOs must continually evaluate where resources are being allocated while ensuring the organization maintains financial stability and operational efficiency. Effective finance leaders are often balancing two priorities simultaneously: Supporting innovation and growth Protecting the organization against financial risk Maintaining that balance requires thoughtful capital allocation, careful investment evaluation, and clear visibility into how resources are deployed across the organization. A Strategic Perspective on Finance Leadership Technology, systems, and transformation initiatives are reshaping the finance function. The success of those initiatives ultimately depends on the people leading them. Finance leaders combine technical expertise with the ability to interpret complex information and translate it into guidance that leadership teams can act on. In many organizations, finance is uniquely positioned to connect signals across the business and help leaders understand how operational decisions influence financial performance. How KCG Search Supports Finance Leadership Strategy Finance leadership is expanding as organizations rely more heavily on financial insight to guide strategic decisions. As finance teams take on greater responsibility for connecting operational performance with financial outcomes, the expectations placed on finance leaders continue to grow. Organizations increasingly need finance professionals who combine strong technical expertise with the ability to interpret complex information, collaborate with executive teams, and translate financial data into actionable insight. At KCG Search, we partner with CFOs and executive leadership teams to identify finance professionals who bring both analytical depth and strategic perspective to their organizations. Our work focuses on helping leadership teams build finance capabilities that strengthen decision clarity, operational visibility, and long-term business performance. If you are building a finance team aligned with your organization's strategic priorities, we would welcome the opportunity to continue that conversation. 
Strategic CFO interpreting financial and operational signals across an interconnected business netwo
By Debra Miller March 1, 2026
The CFO role is rapidly evolving. Learn how strategic CFOs are becoming the decision engine of modern organizations and why finance leadership is critical for businesses
White question marks of increasing size, arranged in a row against a light background.
By Debra Miller February 18, 2026
The most reliable predictor of a potential employee's future performance is based on their past performance. That is the foundation of competency-based interviewing. Competencies go beyond a list of skills or credentials. They reflect how a candidate applies their knowledge and experience in real-world situations . It allows the potential candidate to demonstrate their thought process of navigating competing priorities, adapting to shifting expectations, and delivering results when the path forward requires judgment, not just protocols. When key stakeholders define and align on the required role responsibilities and expectations prior to candidate interviews, the outcome is invaluable: a consistent, equitable standard for evaluating every candidate against the role's actual demands. Understanding the 3 Question Types That Drive Better Interviews To truly assess a candidate’s fit, strong interviews blend behavioral, situational , and technical questions. Each type uncovers a different layer of ability and motivation. 1. Behavioral Questions – “How Have You Acted Before?” Purpose: Reveal how candidates have responded to real-world challenges. Why it matters: Past behavior often predicts future performance. Example: “Tell me about a time you had to manage conflicting priorities under pressure.” Look for ownership, reflection, and measurable results. 2. Situational Questions – “How Would You Act?” Purpose: Test how a candidate would approach a hypothetical challenge. Why it matters: Helps you assess decision-making, ethics, and alignment with company culture. Example: “If a key project started falling behind, how would you bring it back on track?” Strong candidates show calm analysis and proactive solutions. 3. Technical Questions – “Can You Do the Work?” Purpose: Confirm the candidate’s functional expertise and readiness for the role. Why it matters: Every great hire needs both judgment and technical fluency. Example: “Walk me through how you’d perform a month-end close across multiple entities.” These questions validate skill depth and adaptability to evolving tools and systems. 10 Competency Questions to Ask in 2026 1. Tell me about a time you had to make a decision with incomplete information. Provides hiring managers with an opportunity to evaluate a candidate’s critical thinking and composure under uncertainty. This question helps identify individuals who can balance risk and logic — a vital competency in fast-changing markets where perfect information rarely exists. 2. Describe a project where you collaborated across departments or regions. Reveals how well a candidate communicates and adapts in cross-functional environments. Strong answers demonstrate collaboration, empathy, and an understanding of organizational dynamics across diverse teams. 3. Give an example of how you used data to influence a business decision. Helps assess analytical ability and business acumen. This question spotlights candidates who can translate data into actionable insights that drive measurable outcomes. 4. Tell me about a time you identified an opportunity for improvement and took initiative. Uncovers ownership, curiosity, and accountability. It highlights candidates who proactively identify challenges and implement solutions — rather than waiting for direction. 5. Describe a situation where you had to adapt quickly to change. Evaluates resilience, flexibility, and composure under shifting priorities. Look for candidates who stay solution-oriented and maintain performance amid uncertainty or disruption. 6. Share how you built trust within a team or with a client. Explores emotional intelligence and communication style. Candidates who can describe specific trust-building actions often bring stronger relationships, collaboration, and influence. 7. Tell me about a goal you didn’t meet — and what you learned from it. Assesses humility, self-awareness, and a growth mindset. The most valuable responses show reflection, accountability, and how lessons learned improved later performance. 8. Explain how you manage competing priorities and deadlines. Tests time management, decision-making, and strategic focus. This question highlights how candidates assess urgency versus impact to maintain consistent, high-quality outcomes. 9. Describe how you’ve contributed to a more inclusive or collaborative culture. Explores leadership, empathy, and team engagement. Strong responses show intentional efforts to support inclusion, belonging, and stronger collective performance. 10. Tell me about a time you influenced others without direct authority. Assesses leadership potential and the ability to persuade through credibility and collaboration. Candidates who thrive in matrixed or cross-functional settings often excel in influencing outcomes through trust and communication. How to Make These Questions Work for You Tailor them to the role and seniority level. Listen for action verbs like led , improved , developed, and resolved . Ask follow-ups such as “What was the result?” or “What would you do differently?” These techniques help uncover the real story behind the résumé — the difference between a good interview and a great hire. Final Thought In 2026, the ideal interview looks beyond a potential candidate's experience to uncover behavior, mindset, and motivation. Competency-based questions help leaders identify and hire high-performing talent that can adapt, collaborate, and deliver results within a constantly changing environment. At KCG Search, we partner with finance, accounting, and marketing leaders to build interview strategies that go beyond credentials and uncover the competencies that actually predict long-term performance. If you would like to discuss how we can support you with your next search, we would welcome that conversation. Reach out to KCG Search today.
Show More