AI, ATS reshape hiring in 2026 as employers prioritise skills, experience, and human abilities

Hiring in 2026 is becoming faster, more automated, and increasingly influenced by artificial intelligence and applicant tracking systems (ATS), fundamentally changing how job applications are screened and evaluated.

According to the Resume Genius 2026 Hiring Insights Report, based on a survey of 1,000 U.S. hiring managers, automation now plays a major role in recruitment, but human decision-making still remains central to final hiring outcomes.

The report found that 71% of hiring managers use applicant tracking systems, while 79% of companies have automated at least part of their hiring process. Meanwhile, 19% of hiring managers said they use AI to screen out applications before they are reviewed by a human.

Despite the growing use of automation, most hiring managers said AI acts more as a decision-support tool rather than replacing human judgment. 

Around 32% said AI recommends or ranks candidates but humans make the final hiring decisions, while only 6% reported that AI can move candidates forward or reject them with limited human review.

ATS dominates early hiring stages

Applicant tracking systems are now widely used to manage the growing volume of job applications and speed up early-stage screening. Hiring managers said ATS tools are primarily used to review applications faster, manage large applicant volumes, identify candidates who don’t meet basic requirements, and organise applications.

However, the systems are not without criticism. About 33% of hiring managers said ATS makes the hiring process feel less personal, while another 33% said it overemphasises keyword matching rather than overall candidate fit or experience.

Formatting also plays a major role in whether resumes pass ATS screening. Hiring managers said text-based PDFs and Word documents work best, while design-heavy resumes with images or complex layouts often fail to parse correctly.

AI-written resumes rising, but employers can spot them

The growing use of AI tools among job seekers is also changing how resumes look and read. The survey found that 79% of hiring managers believe resumes are now more polished and tailored than five years ago, and 76% said overall resume quality has improved.

However, employers are increasingly wary of AI-generated applications. 80% of hiring managers said they can spot an AI-written resume, and 77% said many resumes appear partially or fully AI-generated. Many also noted that resumes are becoming more generic and formulaic.

Common signs of AI-written resumes include unnatural phrasing, repetitive language, vague descriptions, buzzword-heavy writing, and overly perfect grammar.

Experience now valued more than education

The report also highlights a major shift in hiring priorities. 86% of hiring managers said they value relevant work experience more than formal education, while 82% said certifications can be as valuable as a bachelor’s degree. Many employers also said self-taught skills and portfolios are increasingly accepted as alternatives to traditional degrees.

This shift is also making career changes easier, with 85% of hiring managers saying they evaluate career changers based on skills and readiness rather than direct experience in the same role.

Human skills remain most important

Despite rapid technological changes, employers said human skills remain the most important factor when deciding who to hire.

The most in-demand skills in 2026 include:

• Communication and collaboration

• Critical thinking and problem-solving

• Industry knowledge

• Project management

• Data analysis

• AI and machine learning

• Software development and cybersecurity

The report found that communication and collaboration skills are the most valued, prioritised by 48% of hiring managers.

Salary negotiations still possible, within limits

Salary negotiation remains part of the hiring process, but within clear limits. Most hiring managers said they are comfortable with salary negotiations in the 10% to 25% range, with the median acceptable increase around 22%. Requests beyond that range are less likely to succeed unless strongly justified.

Hiring becoming faster but more competitive

Overall, the report concludes that hiring in 2026 is becoming more automated, more skills-focused, and more competitive, with candidates needing to optimise resumes for both software screening and human review.

“Hiring managers are increasingly focused on whether a candidate looks ready to hit the ground running, not just whether they check traditional boxes,” said Eva Chan, Career Expert at Resume Genius. “Relevant experience, transferable skills, recent proof of ability, and a realistic understanding of the hiring process can all carry real weight.” 

“Our data shows that salary negotiation is often acceptable, but it’s most effective when candidates approach it sensibly,” added Chan. “A thoughtful, realistic ask is more likely to be received well than one that pushes too far beyond what employers are prepared to offer.”   

While AI and automation are transforming recruitment, the most successful candidates are still those who demonstrate clear experience, relevant skills, and strong communication abilities, showing that even in an AI-driven hiring world, human strengths remain critical.