Employers urged to be transparent on AI use amid widening trust gap with jobseekers

Employers using artificial intelligence (AI) in hiring are being urged to be transparent, after a new Indeed report highlighted a growing disconnect between recruiters and jobseekers. Experts say the lack of clarity around AI use is fueling mistrust and widening the gap between what employers think workers want and what jobseekers actually experience.

The report, Employers Are Out of Touch. Job Seekers Are Over It. What Now?, found that while 70% of employers believe they understand employee needs, only 18% of employees agree. Similarly, 50% of employers expect the overall job market to improve in 2026, yet just 20% of jobseekers see it positively, with 41% predicting it will worsen.

Transparency and AI appeals

Indeed recommends that employers clearly communicate AI’s role on career sites, including what AI does, such as screening resumes for skills, what it doesn’t do, like making final hiring decisions, and where humans are involved. Employers are also advised to implement an AI appeal process, allowing candidates who feel disadvantaged by algorithms to request human interviews. Disclosing potential AI biases helps underrepresented candidates understand risks, the report notes.

“Be transparent about the work, be explicit about AI’s role, and offer real upskilling backed with outcomes,” said Kyle M.K., senior talent advisor at Indeed. “This helps jobseekers tailor skills-first resumes and rebuild confidence in the process. It all comes down to trust, and you have to earn it before anything else.”

Matt Berndt, Head of Indeed’s Job Search Academy, added: “This isn’t a tech problem; it’s human. Employers and workers need to use AI collaboratively and transparently. For workers, if you’re not using AI intentionally, the tools can’t help you grow professionally or advance in your career.”

The confidence gap

Indeed’s survey, conducted by YouGov, shows a stark “Stability Standoff” between optimistic employers and cautious workers. While 85% of employers expect to meet their 2026 talent goals, only 59% of workers are confident about achieving their own career goals. Gen Z is the most confident generation, with 77% expressing optimism despite entry-level labor pressures.

Experts attribute the disconnect to poor communication. Employers often fail to specify skills, capabilities, and qualifications, while jobseekers struggle to present them effectively. Interviews frequently rely on traditional questions that don’t reveal real skills, while candidates often remain passive rather than actively assessing the company.

Workforce risks and shifting leverage

Both employers and jobseekers cite burnout as a top concern. However, 38% of employers anticipate more “996” work cultures (9 a.m. to 9 p.m., six days a week), conflicting with wellbeing priorities. Jobseekers express mixed feelings about 2026: 32% feel confident in their skills, 29% are optimistic about opportunities, but 24% worry about layoffs and 20% about unclear pay and growth paths.

The report warns of rising disengagement trends, including gig stacking, job hugging, quiet quitting, and rage applying. Experts say younger generations increasingly weigh flexibility and values alignment over pay, signaling the decline of traditional “do a good job, stay long-term” career contracts.

Upskilling as a unifying solution

Employers and jobseekers diverge on AI and skills-first practices but align on upskilling as a path to growth. While 40% of employers plan to implement AI in 2026, only 13% of jobseekers are enthusiastic about it, with 35% expressing concern. Certification programs and accessible training are seen as critical, with 45% of employers and 34% of jobseekers agreeing on the importance of upskilling.

“Transparency, AI oversight, and upskilling paths are essential to turn confusion into confidence,” said Berndt. “Both employers and workers are using AI, but misunderstanding each other creates distrust. Collaborative and intentional use is key.”

Kyle M.K. added: “Trust is earned. By being explicit about AI’s role and investing in real upskilling, employers can help candidates showcase skills and rebuild confidence, foundational for a productive, engaged workforce.”

The report underscores that restoring trust between employers and jobseekers will require a revamp of listening practices, clear communication, skills-first hiring, and proactive upskilling, steps crucial for navigating the evolving labor market and building a future-ready workforce.