68% of Tech Professionals Distrust Fully AI-Powered Hiring Processes, Creating Unprecedented Industry Retention Risk

CENTENNIAL, Colo.--(BUSINESS WIRE)--Aug. 21, 2025-- After nearly two years of widespread AI adoption in recruitment, tech professionals exhibit an overwhelming distrust of how these tools are being implemented in hiring processes. A new research report from Dice (a DHI Group, Inc. brand) (NYSE: DHX) reveals that while AI has delivered efficiency gains for recruitment teams, it has contributed to a trust crisis that threatens companies' ability to attract top talent. According to "The Trust Gap in Tech Hiring" report, 68%ⁱ of tech professionals distrust fully AI-driven hiring processes, while 80% trust human-driven approaches—creating a stark divide that's indicative of a critical flaw in the process as a whole.

The research, based on a survey of 212 U.S. tech professionals conducted in June and July 2025, examines how candidates perceive and experience AI-enhanced hiring processes. The findings uncover alarming retention risks as nearly 30% of tech workers are considering leaving the industry entirely due to their frustrations with the hiring process. Critically, the report demonstrates that the solution isn't abandoning AI, but implementing transparent, hybrid approaches that combine AI efficiency with human oversight.

The Perception Gap Between Employers and Candidates

The research reveals a significant disconnect between employer intentions and candidate experiences. According to a report by Insight Global, 98% of hiring managers report using AI tools with improved efficiency. However, tech professionals perceive these implementations as opaque and exclusionary. This perception gap, rather than AI technology itself, is driving the trust crisis. Key findings from Dice’s research include:

• 92% of tech professionals believe AI tools miss qualified candidates who don't optimize for keywords
• 78% feel current hiring practices pressure them to exaggerate qualifications just to get noticed
• 65% have modified their resumes specifically to improve their chances with AI screening tools
• Women in tech are 2.5 times more likely than men to explore careers outside the industry due to hiring frustrations

"At Dice, we work hard to operate as a bridge between tech professionals and hiring teams, and this research reveals just how critical transparency has become in that process," said Paul Farnsworth, President of Dice. "What we're seeing is fascinating—it's not that AI is inherently problematic, but rather how candidates perceive its implementation. When professionals feel like they're submitting applications into a black hole with no human oversight, that creates distrust. The companies succeeding in this environment are those that are transparent about their process and maintain human connection points throughout the hiring journey."

When Perception Drives Behavior Change

The findings suggest a concerning trend: perceptions of AI screening have triggered a “gaming arms race,” in which candidates believe deception is necessary for success, rendering authenticity a competitive disadvantage. Tech professionals report removing accomplishments and personality from resumes, spending hours keyword-optimizing applications, and using AI tools to mass-apply to positions they know nothing about. Alarmingly, 78% of tech professionals say today’s hiring practices push candidates to overstate their qualifications, and 65% admit to tweaking their resumes to beat screening tools.

The resulting distrust has created a vicious cycle: without AI, hiring teams face an unmanageable influx of applications, while candidates rely on AI to scale up their submissions in hopes of securing a single role.

The Solution: Transparency and Hybrid Approaches Build Trust

The research points to a clear solution: harness AI’s efficiency while restoring candidate trust. Just 14% trust fully automated hiring, but 46% trust hybrid models that pair AI with human oversight and transparent communication. Companies that openly embrace their human-AI hybrid models can win over talent that their competitors are driving away and alienating.

The most effective trust-building approaches prioritize transparency: clear job requirements (53%), prompt communication throughout the process (49%), guaranteed human review of applications (46%), salary transparency from the start (43%), and clear explanation of evaluation criteria (40%).

Strategic Implications for Recruiters and Staffing Agencies

For sourcing, recruiting, and staffing agencies, the findings highlight a significant competitive opportunity. While direct employers struggle with AI implementation, agencies that understand these dynamics can position themselves as trusted intermediaries who can bridge the communication gap between companies and candidates.

The research suggests that agencies emphasizing human expertise and transparent processes will command premium positioning, while helping their partners avoid risk of damaged employer brands and reduced applicant pools.

Access the Full Report

The complete "Trust Gap in Tech Hiring" report, including detailed demographic breakdowns, implementation frameworks, and strategic recommendations, is available here.

About Dice

Dice is a leading tech career hub connecting employers with skilled technology professionals and providing tech professionals with career opportunities, data, insights and advice. Established in 1990, Dice began as one of the first career sites and today provides a comprehensive suite of recruiting solutions, empowering companies and recruiters to make informed hiring decisions. Dice serves multiple markets throughout North America. Dice is a DHI Group, Inc. (NYSE:DHX) brand.

About DHI Group, Inc.

DHI Group, Inc. (NYSE: DHX) is a provider of AI-powered career marketplaces that focus on technology roles. DHI's two brands, Dice and ClearanceJobs, enable recruiters and hiring managers to efficiently search for and connect with highly skilled technologists based on the skills requested. The Company's patented algorithms manage over 100,000 unique technology skills. Additionally, our marketplaces allow technology professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at www.dhigroupinc.com.

ⁱ Except where noted, percentages based on responses to Dice’s “The Trust Gap in Tech Hiring” survey.

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Source: DHI Group, Inc.