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AI Destroys Hiring Signals

Key Points

  • The job market’s traditional “expensive” signals—well‑crafted resumes, cover letters, and portfolios—lost their value because AI can generate high‑quality versions at zero marginal cost, turning those signals into noise (a Shannon‑entropy collapse).
  • This collapse hurts both sides: candidates flood jobs with countless AI‑crafted applications, and hiring managers drown in thousands of indistinguishable submissions, while the usual advice (“post more,” “yell louder,” “build a social presence”) only adds to the cacophony.
  • The pre‑2022 information equilibrium, where effort differentiated strong candidates from weak ones, is permanently broken; simply increasing the volume of signals can no longer restore meaningful hiring signals.
  • To navigate this new landscape, job seekers and recruiters must abandon the old playbook and adopt fresh, concrete tools and strategies that create genuine differentiation beyond generic, effort‑free AI outputs.

Full Transcript

# AI Destroys Hiring Signals **Source:** [https://www.youtube.com/watch?v=KT4v_I9zvH4](https://www.youtube.com/watch?v=KT4v_I9zvH4) **Duration:** 00:16:11 ## Summary - The job market’s traditional “expensive” signals—well‑crafted resumes, cover letters, and portfolios—lost their value because AI can generate high‑quality versions at zero marginal cost, turning those signals into noise (a Shannon‑entropy collapse). - This collapse hurts both sides: candidates flood jobs with countless AI‑crafted applications, and hiring managers drown in thousands of indistinguishable submissions, while the usual advice (“post more,” “yell louder,” “build a social presence”) only adds to the cacophony. - The pre‑2022 information equilibrium, where effort differentiated strong candidates from weak ones, is permanently broken; simply increasing the volume of signals can no longer restore meaningful hiring signals. - To navigate this new landscape, job seekers and recruiters must abandon the old playbook and adopt fresh, concrete tools and strategies that create genuine differentiation beyond generic, effort‑free AI outputs. ## Sections - [00:00:00](https://www.youtube.com/watch?v=KT4v_I9zvH4&t=0s) **AI Destroys Hiring Signals** - The speaker argues that AI-generated resumes have reduced the cost of creating hiring information to zero, eroding the traditional signals that once separated genuine candidate effort from noise and leaving both job seekers and employers without reliable guidance. - [00:03:06](https://www.youtube.com/watch?v=KT4v_I9zvH4&t=186s) **Shifting From Credentials to Verification** - The speaker argues that in an era where information is abundant, traditional resumes and certifications add noise, and proposes a move toward provable verification of skills—outlining five principles for a new talent marketplace model. - [00:06:23](https://www.youtube.com/watch?v=KT4v_I9zvH4&t=383s) **Process Over Outcome in Hiring** - The speaker argues that hiring should prioritize observable, verifiable work processes—such as live problem‑solving trials—rather than polished resumes or portfolios, which can be easily faked in the AI era. - [00:09:37](https://www.youtube.com/watch?v=KT4v_I9zvH4&t=577s) **Adaptive LLM Competence Assessment** - The speaker proposes using progressively harder LLM‑driven tests to generate reliable signals of candidate ability and help companies validate their own hiring needs, moving AI use beyond simple resume generation. - [00:13:21](https://www.youtube.com/watch?v=KT4v_I9zvH4&t=801s) **Building Capability‑Based Job Search** - The speaker argues for replacing keyword job matching with a semantic, capability‑focused search using RAG tools, highlighting how transparent verification becomes increasingly valuable amid AI‑generated resume noise. ## Full Transcript
0:00We all know that LinkedIn is dead. But 0:02the problem is most of the advice that I 0:05see online is still optimizing for that 0:07dead system. I want to step back. I want 0:09to look at the root causes of what's 0:11going on with the AI job market 0:12collapse. And I want to talk it through 0:14step by step and get to a spot by the 0:17end of this 10-minute video or so where 0:19you actually have a clear perspective on 0:21what's going on, a clear sense of your 0:23actionables, the tools you have at your 0:25disposal that are not just the standard 0:27advice. and if you're in the hiring 0:29chair, a clear sense of how you can 0:31start to differentiate as you hire. So, 0:34let's get into it. We don't have a lot 0:35of time. Number one, the core issue here 0:38is that signals in the hiring market 0:40have collapsed to zero because marginal 0:43cost of information production is also 0:45zero. In other words, the job market 0:48used to work because signals were 0:50expensive to produce. So, a resume took 0:54time. A good written resume took more 0:57time. Cover letters took genuine 0:59thought. I used to be able to read a 1:01resume and I could read the effort 1:03behind it. The cost worked because the 1:06cost separated signal from noise. AI has 1:08collapsed that cost to zero. We all know 1:10that. We live that every day. When you 1:12can write a good resume at zero cost and 1:15in fact pump out 10 different custom 1:17résumés, there is no information in that 1:20signal. The fancy word for this is that 1:23this is Shannon entropy and Shannon 1:25entropy is playing out in the labor 1:26markets, right? The less fancy way of 1:29saying it is that because it doesn't 1:31cost anything to make information, that 1:34information loses signal, value, and 1:36hiring and we're all in trouble. That's 1:39what we feel, right? What's interesting 1:41is we mostly talk about it from the 1:43talent side, but the truth is both sides 1:45are drowning. A thousand applications 1:47per job sucks for everybody. And the 1:50problem is both sides right now tend to 1:52give advice that creates more noise to 1:55cut the noise. So yell louder, but 1:58everyone's being told to yell louder. 2:00Everyone's being told to put a portfolio 2:01out there. Everyone's being told to 2:03start a social media presence of some 2:06sort. Everyone's being told that like 2:08you should be like putting more and more 2:10job descriptions out there if you're a 2:11hiring manager. And it all adds up to 2:13this cacophony of noise in the AI job 2:16market. And what I want to suggest to 2:17you is that the information equilibrium 2:20that we used to have before 2022 is 2:24permanently gone. It is not coming back. 2:26More noise does not fix this. In the 2:29past, strong candidates could afford the 2:32effort to raise the noise level and they 2:34could break through with signal. And 2:35weak candidates faced issues with their 2:38ability to actually put the effort in 2:40and generate quality work. And so we 2:42started to have a useful signal when 2:45people put more effort in. LLMs have 2:48destroyed the value of effort from good 2:50candidates and they make it equally 2:53cheap for everyone to produce infinite 2:55signals. And I think we have to start by 2:57just admitting the old game that we 3:00played before 2022 is over and we don't 3:03know how to play the new game yet. 3:05That's what I'm getting to with this 3:06video. Every solution we have is adding 3:09to that noise. And I want to be honest 3:11about that, right? When you optimize 3:13your resume, when you optimize your 3:16portfolio website, it all adds to the 3:19noise. And so what I want to suggest 3:21here is that what we need to do is to 3:23move from a world where information is 3:25cheap to produce for everybody to a 3:28world where we start to see verification 3:32instead of credentiing. So credentiing 3:34is what we used to do. Credentiing is 3:37what a resume is for. Credentiing is 3:39when we have certifications. 3:41Verification actually shows in a 3:44provable way that we have the skill. And 3:46I think that we are trying to make our 3:48little baby steps that way when we talk 3:51about the idea of proving work through a 3:55portfolio. But we can go a lot farther 3:57than that if we go back to first 3:59principles and actually reason this 4:00through. Let's look at what it takes 4:02when you see verification as the heart 4:05of a new way of thinking about jobs in 4:07the postAI era. In the era when 4:09information costs nothing to produce. I 4:12want to suggest five quick principles 4:14for a verification world. And I want to 4:16start to suggest to you how we could 4:17start to build those out and game those 4:19out even now. One of the hard things, 4:21one of the things that has make it made 4:23made it difficult to make this video is 4:25that a marketplace like the talent 4:28marketplace is sometimes stuck in a bad 4:31equilibrium where every single 4:33stakeholder has an incentive to change 4:34it, but none of us can do it by 4:36ourselves. I want to give you tools that 4:39work even in a difficult equilibrium 4:43like we're in right now. And that's what 4:44I've been really wrestling with. So, the 4:46five principles that follow are 4:47scalable. They work both. You can see 4:51elements of them now and they have teeth 4:54that let you get into a better 4:56equilibrium if we can all work together 4:59as a tech ecosystem. So principle number 5:02one, process over outcome. Outcomes are 5:05more easily fakeable now. LLMs, as I've 5:07been saying, they generated code, they 5:09generate writeups, they generate demos. 5:11Process patterns are closer to that 5:14verification world. Process patterns are 5:17hard to fake. We look for them in 5:19interviews. The iteration cycles you 5:21took to get something done, where you 5:23got stuck, how you debugged some Vibe 5:26code, what you would do differently. 5:28Effective LLM use, effective LLM 5:31building, effective LLM writing has a 5:34shape. You can iterate, you can 5:36backtrack, you can override, but it's 5:38much much easier to distinguish the 5:41shape of good LLM co-work versus blind 5:44acceptance. And so I think that one of 5:46the things that we should start thinking 5:48about is making our process the product 5:51when it comes to the talent marketplace. 5:53This has concrete implications for your 5:55portfolio. If you're looking at your 5:56portfolio as an outcome, maybe you want 5:59to look at it as a process or a story 6:02that you're telling where you include 6:04the debugging and the getting stuck and 6:05what you do differently. The most 6:08effective portfolio site I have ever 6:10seen told a full three-year story of a 6:13product. every stage along the way was 6:16honest about mistakes, showed failed 6:18designs. It was absolutely compelling. 6:21The process matters more than the 6:23outcome. And you can't fake the process 6:26the way you can fake the outcome in the 6:28age of AI. It's number one. Number two, 6:30we need to make verification easier, not 6:34make signals better. Companies don't 6:36need better candidates. Actually, most 6:38of them have all the candidates they 6:40need sitting in the applicant pool, as 6:41the applicants will tell you. it's that 6:43they can't tell who's real. So, stop 6:45optimizing for better resumes and 6:48shinier portfolios in that world because 6:50the companies won't be able to tell. 6:52Instead, start optimizing for things 6:54that are more verifiable. How can you 6:57show work trials where you solved a real 7:00problem? How can you and by the way, as 7:03a hiring manager, you should be looking 7:05at work trials. That is actually a good 7:06way to get a sense of how people work in 7:08this world and it gives them something 7:10they can show. What about live 7:11problem-solving videos where you get on 7:13with a candidate and you solve a problem 7:14together. That's a great way to sort of 7:16make this work as well. And if you're a 7:18candidate, you don't have to wait. You 7:21can live solve a meaningful problem. And 7:23I've seen people do it in videos where 7:25they get on and they say, "You know 7:26what? I took a look at your onboarding 7:28funnel. These are the three things I 7:30think I'd change. This is why. This is 7:32how I'd change it. This is how I'd test, 7:34etc." You can just start to problem 7:36solve. And again, you're showing that 7:38process and you're making it you're sort 7:39of surfacing verification because one of 7:41the things I will tell you on the talent 7:43side, companies want to do this, but 7:46they by and large don't know how and 7:49they are stuck in the existing default 7:51circumstance. The goal of this video is 7:53to shake up the status quo a little bit 7:55and get people thinking differently 7:57because I think that both sides need to 7:59think differently to shake this 8:00equilibrium loose. Ultimately, the 8:02winner in a system like this isn't the 8:04one that yells the loudest. It is the 8:07one who makes hiring decisions the 8:09easiest. And if I could tell talent one 8:11thing, if you're looking for a role, 8:13make the hiring decision the easiest 8:16thing. That is actually the mindset to 8:17be in more than the noise. Principle 8:19number three, we can start to use LLM to 8:23generate verification, not just to 8:26generate text. Now, this starts to get 8:28creative, maybe a touch speculative. 8:30There might be a product idea here, but 8:31I think there's something for both the 8:32talent side of the ball and also for the 8:35hiring side of the ball here. The point 8:37is this. We are mostly using LLM as 8:40noise generators in the talent 8:41marketplace. We shouldn't be LLMs are 8:44actually really effective judge judges 8:46of other people's work. They're 8:48effective evaluators. They're effective 8:50researchers. They're creative thinkers 8:52and they're verifiers. In other words, 8:54these are machines that compute with 8:57words and we are just using them to 9:00produce lots and lots of cheap text 9:02instead of thinking more creatively. 9:04What could we do with this capability? 9:05As an example, a cryptographically 9:08signed LLM conversation shows your 9:10prompt quality and your iteration 9:11pattern. Now, you may not be able to 9:13cryptographically sign it because I'm 9:14not sure I know of a startup that does 9:15that, but you can still right now show 9:18your prompt quality and iteration 9:19pattern. Again, we're going back to that 9:21process piece, aren't we? LLM generated 9:23adaptive assessment finds your competent 9:26ceiling efficiently. What that means is 9:28you can actually get the LLM to 9:30progressively test you and ask you 9:32harder and harder and harder questions. 9:34I wrote an AI fluency assessment just a 9:37few days ago on the Substack and it had 9:39some of that built into it, but you can 9:41go farther. You can actually design an 9:43LLM competence assessment that asks 9:47harder and harder and harder questions 9:49as you go to eventually find where you 9:52top out. And I think that that's 9:53actually useful not just for hiring 9:56managers to find signal. It's also 9:58useful again on the process side for 10:00talent to show what what you're capable 10:02of, right? Like if you can go through 10:04and you can take the hardest, most 10:06gnarly product management questions that 10:08an LLM can throw at you and answer them 10:10in a highquality way after going through 10:1315 easy, medium, increasingly difficult 10:16ones, that says something, especially if 10:18you can see the whole process. If you 10:20can see that you're not gaming the 10:21system. So I think that we are overdue 10:24for using LLMs to create signal where 10:27there just hasn't been any signal 10:29whatsoever. Right? It's like we're 10:30pouring all of this energy for AI into 10:32making noise in a crowded, noisy 10:34marketplace, but there are quiet spaces 10:36where nobody's talking at all. Why 10:38aren't we using AIs a little bit more 10:40creatively beyond just generating 10:42resumes, right? Beyond just generating 10:44cover letters. All right, principle 10:46number four, bilateral value creation. 10:50You want to help companies to verify 10:53themselves. I know this sounds funny if 10:55you're talent like why do the companies 10:56need the help? But trust me, most 10:58companies do not know what they really 11:01need. They don't. They're posting LLM 11:03generated job descriptions for fuzzy 11:05roles and they need help to clarify in 11:08most cases. You can interview them about 11:10the problem space, right? You can write 11:13analyses of their challenges. You can 11:15offer trials that validate their needs. 11:17I know people who are doing this and are 11:19sort of taking command of the job 11:21process because the company is trying to 11:23figure out the answer and it feels 11:26really good for them when a talented 11:28candidate comes along and says, "Let me 11:29help you get clarity on this role. This 11:31is what you actually need." If you want 11:33a cheat code for more senior interviews, 11:36a lot of your senior interviews for 11:38director and up roles look like that 11:39because they're all custommade. And so 11:41you end up in a place where you are 11:43helping the company to figure out for 11:46both of you what the company really 11:48needs in the role and then secondarily 11:50whether you're a fit. In that situation 11:52you're not just proving your capability. 11:54You're helping them understand what 11:56capability they are looking for. That is 11:58the kind of value that an AI resume 12:00can't give. That is the kind of value 12:02that reminds them that you produce value 12:06that can't be gotten from Clo or Chat 12:08GPT. Right? like it's something that is 12:11essential in the humanto human 12:13connection of work, which by the way, 12:15lest we forget, is the whole point of 12:17all of this. Principle number five, you 12:19need to be looking at capability spaces 12:21more than job titles. I saved the best 12:23one for last. An AIPM means different 12:26things at different companies. We all 12:27know that, but we lack a vocabulary for 12:30the next level. So, what I want to 12:31encourage you to do is to think about it 12:33this way. Job titles are often noise at 12:35this stage because the roles are 12:36evolving so quickly and it's part of 12:38what makes the talent marketplace so 12:39noisy. So instead of looking at all AIPM 12:43roles, position yourself across 12:45capability spaces, look at technical 12:47communication. Maybe that's a strength 12:49for you. Look at system design under 12:51situations of uncertainty. Look at LLM 12:53evaluation. Is that a skill that you 12:55have? Look at rapid prototyping. Build a 12:58project that works across multiple 13:00capabilities. show your process, which 13:02is one of the things I've been calling 13:03out, match on problem types that they 13:06need to have solved. And so, one of the 13:09things that I think is actually really 13:10slept on is that we have semantic search 13:14available now that will allow you to 13:17match on much more than just keywords. 13:19And yet, our entire job ecosystem still 13:21runs like the on keywords. Why is that? 13:24Why can't we have a job semantic search 13:28that matches not on keywords but on the 13:31capabilities? This it's not that hard. 13:33And there you can actually build one 13:35yourself. If you wanted to do a project 13:37where you built a rag and you could 13:40build out a listing of jobs in a 13:42particular job family and you could 13:44semantically search to see where the 13:47correct role targets are. All of the 13:50tech is on the table. That is basically 13:52a weekend project. At this point, you 13:54can transcend the title matching game 13:56entirely with with work like that. And 13:59the larger point, whether you want to 14:00build a rag for your personal job search 14:02or whether I'm inspiring someone to do 14:04that, because I bet I am, the larger 14:06point is this. Think in capability 14:08spaces. Think in terms of what are the 14:10capability sets you can show. How can 14:13you lay out that process really 14:14transparently? And then and then you can 14:18get into a space where you can start to 14:20show what you know in a way that's 14:22provable. And that gets all the way back 14:24to verification. The larger point is 14:26this. As more LLMs create more noise, as 14:29the crowd runs to have LLMs generate 14:32resume after resume, generate AI answer 14:35for interviews after AI answer for 14:37interviews, verification is only going 14:39to become more valuable, not less 14:42valuable. The tactics I'm laying out 14:44here are designed to have increased 14:46returns. The more the market breaks, the 14:49bigger your advantage for making vetting 14:51easier because that is the core problem 14:53companies are facing. I don't want to 14:55give you principles here that require 14:57everyone who is listening to this to 14:59yell louder and compete with each other. 15:01Instead, I want to give you things that 15:03let you zigg when the market is zagging. 15:05And right now, the market is zagging 15:06hard toward yelling in a noisy 15:08marketplace with AI. So, let's find some 15:10creative alternatives, shall we? you are 15:12building with these kinds of moves 15:14toward a new equilibrium while everyone 15:17else is clinging to the old one and that 15:19gap is going to widen with time. The LLM 15:21noise crisis is not going away. I said 15:24at the top this is a permanently broken 15:26system. It's broken permanently not 15:28because of anybody's bad intent but 15:30because LLMs have permanently reset the 15:32cost of this kind of information to 15:35zero. So this is not really advice for 15:37navigating a broken system. It is 15:39positioning you for the future system 15:41that will replace it. And it's setting 15:42you up to work well even now in a system 15:45that is not quite ready to reach that 15:48new equilibrium. It is a principle for 15:50bridging. How can we succeed now and 15:52zigg while the market is zagging and how 15:54can we build toward a better 15:55equilibrium. The bottom line is this. 15:58Information has become free in the last 16:00two years. Verification has become 16:02priceless. The winner makes 16:04verification. Think about that. Good 16:06luck in your job search. Good luck 16:08hiring. is hard to hire to.