The rapid proliferation of generative artificial intelligence (GenAI) is significantly reshaping the labor market. While existing literature primarily focuses on GenAI’s isolated effects on either labor demand (e.g., task automation) or labor supply (e.g., skill development), research exploring the combined, interactive effects on firm-labor dynamics remains limited. This study addresses this gap by examining how the interplay between firms and job candidates has changed since the advent of GenAI. Leveraging data from a leading bi-directional job matching platform in China, we investigate key pipeline metrics, from initial communication (measured by the volume of chats, resumes, and contact information exchanged) to final conversion (operationalized as the successful scheduling of an interview), across job categories differentially exposed to GenAI. Our findings demonstrate that positions highly exposed to AI experience a significant increase in overall communication volume, yet no corresponding change in interview conversions. Further analyses reveal that these observations stem from divergent changes on the part of firms and candidates. Specifically, among highly exposed positions, candidates initiate significantly more communication but achieve fewer interview conversions, while firms initiate less communication yet secure more conversions. A dynamic regression analysis confirms the persistence of these divergent trends throughout our observation period. We provide strong evidence for the mechanism where GenAI technology improves skill transferability while displacing domain-specific knowledge, therefore reducing the entry barrier for the ex-ante ineligible applicants. We discuss implications for both firms and individuals navigating this evolving job market landscape.
About Miaoze Han
Miaozhe Han is an Assistant Professor of Information Systems at the Hong Kong University of Science and Technology (HKUST) Business School. Miaozhe’s research focuses on the economics of AI and digital platforms. Her work has been published in leading academic journals, including Information Systems Research, Manufacturing & Service Operations Management, and Proceedings of the National Academy of Sciences. She received her PhD in Information Systems from the Chinese University of Hong Kong (CUHK) Business School and her bachelor's degree from Fudan University.