Hiring’s New Gatekeeper: Algorithms, Not Recruiters

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We cut through the noise to bring you the most important updates in HR Tech, AI, and the changing world of work. From new AI colleagues clocking in to shifts in workforce strategy, here’s what you need to know this week.

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In Today’s Edition:

• AI HR Nightmares: When Machines Decide Who Gets a Job

• ‘Perfect matches’: OpenAI vs Indeed, AI Reinvents Hiring

• M&A Activity: Accelerates in HR Tech Sector

• TCS Faces Allegations: HR Misconduct Amid Termination Dispute

• Heidi Farris: Honored as a Leading HR Software Executive of 2025

Forget Keywords, You’re Competing With An Algorithm

TechRadar’s Eric Hal Schwartz argues that job-seekers are being sidelined by AI systems in HR, screening tools, and automated interview bots that decide who even gets considered.

With 92% of hiring managers using AI for resume review or pre-screening interviews, many qualified candidates are rejected for nonstandard formatting or unconventional experience.

Key Takeaways:

• Keyword Overload: Resumes must align with rigid templates; odd phrasing or roles outside the norms can trigger rejection.

• Bots Replace Humans Early: First interactions often aren’t with people but with chatbots or AI filters.

• False Negatives & Lost Talent: Many applicants were overlooked, not due to a lack of skill, but rather due to misalignment with algorithmic expectations.

• Company Losses Hidden: Over-filtering may exclude creative, loyal employees, harming diversity and innovation.

Why It Matters:

If hiring becomes a game of algorithmic guessing, organizations may consistently miss strong performers, sacrificing long-term growth for short-term “efficiency.” Resumes that appeal to bots might win, but those that appeal to people could be lost, unraveling trust, equity, and the promise of fair opportunity.

Read More Here →

How OpenAI and Indeed Are Rewriting Job Matching via AI

OpenAI is building the OpenAI Jobs Platform, an AI-powered matching service slated for mid-2026, plus an OpenAI Academy certification pilot launching in late-2025 to certify 10 million Americans by 2030 (Walmart is an early partner).

Indeed is pushing back with Career Scout (resume/interview coaching) and Talent Scout (AI shortlists, pay/geo/experience optimization). The moves set up a direct challenge to incumbents like LinkedIn as companies race to automate matching while promising upskilling pathways.

Key Takeaways:

Timelines: OpenAI’s Jobs Platform, mid-2026; Certifications pilot, late-2025.
What they do: OpenAI focuses on platform-scale matching and credentialing; Indeed offers candidate-facing coaching (Career Scout) and employer tools (Talent Scout).

Early impact: Indeed reports Career Scout users are notably more successful in hiring funnels, suggesting short-term gains for job seekers who use AI tools.

Worker risk vs. uplift: OpenAI frames certifications as a response to displacement fears; leaders acknowledge automation could hollow out some entry roles while upskilling may help others.

Why it matters: Platforms could redefine credentialing, candidate discovery and recruiter workflows, shifting hiring power toward AI-mediated signals and platforms.

More on: OpenAI
 

1. The HR software startup boom won’t last forever.

Global funding for HR tech hit $1.9B by mid-September 2025, nearly matching all of 2024, but deal count dropped sharply (236 vs. 419), suggesting only larger rounds are happening. Read More

What for HR Leaders: Prioritize quality over quantity, focus on startups delivering meaningful value, not just hype. Monitor deal size, ROI, and how well solutions solve real HR pain points.

2. TCS Faces Allegations of HR Misconduct Amid Layoffs

Ex-TCS employee alleges HR assaulted him after querying severance; viral Reddit post and police complaint spark debate. Read More

What for HR leaders: Ensure transparent exit processes, respond promptly, document interactions, and avoid escalation.

3. ActivTrak CEO Heidi Farris Named to Prestigious List of Top HR Software Executives

ActivTrak CEO Heidi Farris named Top 25 HR Software Executive of 2025, recognized for innovation in workforce analytics after driving 10x growth to $60M ARR. Read More

What for HR leaders: Invest in workforce analytics to boost performance, retention, and data-driven decisions.

Virtual Team-Building Statistics: More at HR Stacks