Expert: Labor market already experiencing AI benefits, dangers

Artificial intelligence (AI) will drive major productivity gains leading to higher wages and job creation, said Andrew Crapuchettes, CEO of the hiring firm RedBalloon, in an interview with The Lion.

But the CEO also warned AI can distort hiring and decision-making, sidelining human judgment in areas where character and culture matter most.

Crapuchettes began by tackling the widespread fear of AI replacing human jobs. 

He acknowledged the anxiety surrounding the issue but emphasized AI should be seen as a tool to enhance human efficiency rather than a threat to employment. 

Drawing comparisons to historical technological advancements, Crapuchettes said AI won’t replace work but will optimize human labor just as other advances have. 

“AI is the next tool that makes us more efficient,” he said. “You think of how it used to be – if you wanted to put a nail in and didn’t have a hammer, you used a rock. Then we got a hammer, and then we got a nail gun. AI is a nail gun. It’s just a lot faster than the other things. But it doesn’t mean there’s not work that needs to be done.” 

Crapuchettes provided examples of industries already experiencing the effects of AI. 

In the allied health sector, he noted nursing assistants have become more efficient from software and automation, reducing the demand for labor while increasing wages. 

While some unskilled workers have had to find new jobs, nursing assistants make more money overall, according to Crapuchettes. 

“Each one of the human beings was more efficient, and, as a side note, the wages were going up,” he said. 

This productivity increase leads to higher wages for people inside any industry. It’s also key to economic development as the workforce shrinks from aging and other demographic changes. 

The hiring guru also highlighted the utility industry, which faces a “silver tsunami” as older workers retire and fewer young people enter the field. 

To address this, utility companies are increasingly relying on AI and automation to maintain operations with fewer workers. 

“There simply aren’t enough people to do the work,” Crapuchettes said. He noted younger people aren’t as willing to climb utility poles in freezing weather. 

“It’s not stealing jobs from anybody. It’s just making human beings more efficient.” 

While AI offers significant productivity gains, Crapuchettes was quick to point out its limitations, particularly in creative and decision-making roles. 

For example, AI struggles to make human-based decisions, such as evaluating character, work ethic or grit – qualities that cannot be quantified in a resume, he argued. 

“The businesses that are going to survive and thrive in the future are ones that understand where AI is good and what AI should not do,” he said. 

One of the most pressing challenges in the labor market involves the growing use of AI in hiring processes, according to Crapuchettes. 

He described how job seekers are using AI to generate tailored resumes and cover letters for hundreds of applications, creating a flood of submissions that overwhelm employers. 

In response, companies have adopted applicant tracking systems (ATS) powered by AI to sift through resumes. 

However, this has led to a scenario where “AI is fighting AI,” with perfect resumes often failing to translate into perfect candidates. 

“A perfect resume is not a perfect employee,” Crapuchettes said. 

To address these issues, RedBalloon has developed innovative solutions aimed at making the hiring process more human-centric. 

One such feature, called “Fill in the Gaps,” allows job seekers to respond to specific questions about missing skills or career gaps identified by AI during the application process. 

He said one study estimated only about 7% of resumes are a perfect fit for jobs, and he suspects those with a perfect fit have been aided by AI. This means 93% of all applicants are automatically put in the discard pile. 

This explains why it’s important to reintroduce the human element at that point, Crapuchettes said. 

He said 70% of real job seekers are willing to answer follow-up questions about qualification gaps in their resume. Of those, 35% disclose skills not listed originally, giving employers access to a larger pool of qualified candidates. 

“We’re actually giving humans a chance to pitch themselves,” he said. 

This approach has reportedly reduced the time it takes to fill positions by 35%, as employers can focus on candidates who have demonstrated their suitability for the role. 

Crapuchettes also addressed ethical concerns surrounding AI in hiring, such as allegations of ageism and discrimination. 

He criticized some systems for prioritizing diversity metrics over qualifications, which he argued could lead to unfair hiring practices. AI vendors often hide the option to disable these “nudges” toward diversity discrimination. 

“We want to hire the best person for the job, not fulfill the ideological whims of AI or software,” the RedBalloon CEO said. 

Looking ahead, Crapuchettes remains optimistic about the future of work, despite socio-economic uncertainties. 

He said companies are not pessimistic but cautious about hiring, as economic uncertainty persists and policymakers emphasize boosting labor force participation to strengthen productivity and long-term growth. 

“They’ll hire the perfect employee if they come along, but they’re going to be super-duper picky,” Crapuchettes said about the 7.7 million job openings in the U.S. 

He believes AI will continue to drive long-term productivity gains, but it cannot replace human judgment and creativity. 

“God built human beings to work and there will always be work to do,” Crapuchettes concluded. “AI is coming – it’s just a question of whether we do it smart or not.”