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Roundup: Phenom's New Product Confronts AI-Based Candidate Cheating

Published 8 hours ago4 minute read

Phenom announced an agentic AI tool that can detect in real time candidates who cheat during the interview process. The company said it’s the HR tech industry’s first solution of its kind.

The tool confronts a tough problem, or at least one aspect of it: According to Capterra, 83% of the candidates who use AI in their job search admit to having it somehow exaggerate or lie about their skills. Nearly a third, 29%, have used AI to complete test assignments or skills assessments, while 28% have used it to answer interview questions. Twenty-six percent have used AI to submit applications en masse.

To make this even more complicated, employers in general are encouraging the use of AI. About 79% of U.S. workers feel pressured to learn more about AI tools.

Fraudulent job applications is a bigger problem than many realize, and it’s growing. Gartner estimates as many as 25% of candidates could be gaming the system by 2028. In January, two North Koreans were indicted as part of an effort to place North Korean technology workers as remote employees. More than 300 U.S. firms were victims of the scheme. Meanwhile, Phenom said its customers have reported anywhere from a 50% to 200% rise in fraudulent candidates.

“[It] could take anywhere from three months to a year to figure out someone isn’t actually qualified, especially remote workers,” observed Phenom Senior Director of Product Marketing John Deal. “At this point, an organization could have lost tens of thousands of dollars in ‘salary’ payments.” In fact, some estimates put the cost of bad hires at some $22,700.

Phenom’s Fraud Detection Agent can flag interviewers about possible AI use by candidates, records and assesses interviews for those who couldn’t attend and compares video of interview performance to a candidate’s screening results. Future products will help identify resumes that have been artificially strengthened by AI.

Confronting such trends is a tough nut. “A tech leader recently told me they suspect that 80% of their candidates use LLMs on top-of-funnel code tests — despite being explicitly told not to,” Karat President Jeff Spector told GeekWire.

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resistant to workplace technology, especially as generational differences shape how they perceive and engage with new tools. Research by automation provider Yooz found that one in seven employees have outright refused to use a workplace tool, and 39% call themselves reluctant adopters. Also among the findings: 51% of employees say workplace tech rollouts create internal chaos rather than improve efficiency. Also, 52% receive only basic training, while 20% get little to no guidance. At the same time, nearly 48% said better training would improve adoption.

for HR Service, new AI capabilities that are embedded directly into the company’s employee service solution that includes both an Employee Portal and HR Service Console. The product includes customizable topics and actions that help employees get answers and take action on their own, and works alongside HR teams so they can scale support to more employees.

and Paylocity unveiled a new integration that combines PI's behavioral science with Paylocity's HR capabilities to help employers make more objective, data-driven hiring decisions. The companies said the combination will be particularly valuable for high-volume recruiting teams. The integration includes access to PI without leaving the Paylocity platform, real-time behavioral insights for hiring teams and eliminates the need to switch between different software platforms.

Activate behavior change solution Activate can now be deployed in connection with any third-party enterprise EX platform, including Qualtrics, Medallia and Viva Glint. CEO Ross Wainwright said making Activate more widely available will help business leaders better leverage listening data to “accelerate sustainable behavior change and drive real progress against their most important business outcomes.”

don’t believe their organization’s employee experience stands out, with about half identifying their EX as being “average” at best. The Fosway Group said it’s more difficult to improve the employee experience is more difficult than anticipate. Most organizations are “still far from creating the differentiating employee experience that would make [the] organization truly an employer of choice.” The number of those who believe their EX is excellent is “slowly declining from a very small base,” Fosway said.

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