UK graduate job seekers increasingly use AI to write cover letters and customise applications, but widespread use of the technology is creating problems for both applicants and employers.

Tom, 22, a geography graduate from Maidstone, applied for over 200 jobs before landing a restaurant manager role last month. He used AI to help with cover letters, CVs and to identify recruiter keywords that automated screening systems detect. He did not use AI during assessments or interviews. Tom argues that employers ask candidates to avoid AI while using it themselves to filter applications, calling this "hypocritical."

The Institute of Student Employers surveyed 155 major UK graduate employers this summer and found they are becoming "more accepting" of AI use at some recruitment stages. Writing cover letters or CVs ranked as the most accepted use, followed by completing online application questions. However, 92% of employers reported encountering or suspecting AI "misconduct" in the hiring process, up from 85% last year. Most violations involved using AI as a real-time tool during video interviews or to complete online assessments.

The practice known as "spray and pray" - using AI to generate multiple applications rapidly - is intensifying competition. Stephen Isherwood, joint chief executive of the ISE, said this approach "is driving up the competition and pressure on students" in an already tight market. Graduate roles currently attract an average of 141 applications each, according to the ISE.

Hollie Moody, head of early careers recruitment at energy company EDF, said AI use is a "moral dilemma" for employers and employees alike. She does not blame graduates for adopting the technology given how "brutal" the job market is. EDF closed its graduate recruitment scheme early after receiving 12,000 applications, a 10% increase on the previous year. Moody said AI "almost certainly contributed" to this surge. The company now issues guidance on appropriate AI use and attempts to make its recruitment process "AI-proof" through skills assessments and behaviour-based video interviews. Despite these efforts, some applicants attempt to breach rules, with interviewers noticing repetitive answers and candidates pausing to wait for AI responses.

A recently employed trainee accountant told the BBC he used AI in all 50 job applications he submitted, but only for research, CV editing and practice interview questions. He said he would never cheat on assessments but knows others who have. "If they see everyone else is using AI, they think how can I compete?" he said.

The ISE found that only 16% of employers currently use AI in recruitment, but 29% plan to introduce it within the next year. Moody said EDF does not currently use AI but may need to adopt it in future. She stressed that AI "cannot replace" what the firm seeks in new recruits: "It's about authenticity, but also personality. We want diversity of thought in the business."