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Carcass
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Joined: 01 Sep 2010
Last visit: 29 Apr 2026
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Signaling in the Age of AI: Evidence from Cover Letters Updated on: 25 Feb 2026, 14:55
Originally posted by Carcass on 25 Feb 2026, 14:54.
Last edited by Carcass on 25 Feb 2026, 14:55, edited 2 times in total.
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A new working paper by economists Jingyi Cui, Gabriel Dias, and Justin Ye analyzes over 5 million cover letters submitted to 100,000 jobs during a period when the platform introduced an AI-powered cover letter generator for some of its users.

The researchers found that those with access to generative AI wrote stronger cover letters that were better tailored to the job postings. The candidates with access to the tool secured more interviews.
But the researchers found that the AI tool substantially decreased the value of the cover letter as a signal on the platform. Before the AI tool, tailored cover letters were strongly predictive of higher interview rates and job offers. After the tool was introduced, having written a good cover letter was much less predictive of being given an interview or being hired.
Because of the AI tool, a tailored cover letter became a prerequisite rather than a differentiator.

This is for Job seekers and college applicants alike.

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Interesting article AI Is Killing the Cover Letter KNOWLEDGE at WHARTON
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