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If you’re looking for work, chances are you’ve seen a lot on social media about “AI resume hacks” and other ways to automate your job hunt. LinkedIn, TikTok, and Youtube are awash with advice on using ChatGPT and other artificial intelligence to come out on top, and it’s easy to see why.

Hiring is down, layoffs are up, and long-term unemployment has been on the rise for over a year now. And here’s an irony: While AI has become a primary job search tool, the technology has also led to nearly 50,000 announced job cuts this year, according to data from career placement firm Challenger, Gray & Christmas. The majority of those came in October, when a total of 153,000 announced cuts made it the worst October for layoffs since 2003.

But is there a downside to using AI in your job hunt? While research shows that the vast majority of job seekers are relying on it in one form or another, experts say using the technology too much can backfire, especially when it’s a crutch for writing applications or doing interviews.

“In an incredibly competitive job market, where you need to stand out, AI can actually prevent that,” said Eliana Goldstein, an independent career coach. “You need your own voice to come through.”

What’s more, some job listings have started explicitly stating that using AI is grounds for disqualification. (Even Anthropic, the maker of Claude AI, had to create strict rules for using it in applications and interviews.) And the technology can make it easier to cross a line: 91% of U.S. hiring managers have either caught or suspected a candidate of using AI to misrepresent themselves, according to a recent survey by Greenhouse, a hiring software company.

So what? Everywhere you turn, it’s a brave new world because of AI. And as a society we’re only just beginning to understand the rewards and risks of using it. (Interestingly, while almost half of U.S. job seekers in the Greenhouse survey were drawn to the time savings of AI, many also considered it a way to level the playing field with employers using AI-driven screening systems.)

Whether you’re using AI to build cover letters, submit your applications, or outsmart screening algorithms, tread carefully. Here are a few guiding principles from the career coaches we spoke with.

When to use:

•  In the early stages: AI is a valuable tool in the beginning of a search, and not just for amassing a list of job openings, according to Michael McCutcheon, a career coach and adjunct professor of applied psychology at New York University. It can also be helpful in brainstorming new career paths if you’re looking to pivot industries. Tell tools like Gemini or Claude your skills, what you do now, and what you want to do in the future.

•  For the boring stuff: We’ve all re-read an email to a recruiter 14 times to make sure it’s typo-free or endlessly second-guessed how many bullets to include in our resume. AI can take some of that angst away — and help you use your time more efficiently, Goldstein said.

•  To polish: While the first draft of a cover letter should be from you, you can still use AI to improve your writing, clean up grammar, etc., according to McCutcheon. AI tools can also compare your letter to the job description to make sure you’re showcasing your most fitting attributes. Ditto for resumes.

What to avoid:

•  Sounding like a robot: Vanessa Stasco, managing director at recruiting firm Ikon Search, says it is often clear when she is on the receiving end of a ChatGPT application. And if the role requires independent thinking, obvious AI use can get you eliminated immediately, she said. In short, don’t use AI to replace what makes you you.

•  Scripting interview answers: While AI tools can help you brainstorm potential questions, don’t use them to script your answers. For one, most employers want people who can think on their feet. Plus, things may not go according to plan, so you risk appearing disorganized or unengaged. McCutcheon advises having a friend or coach conduct a practice interview instead.

•  Becoming overreliant: Turning to AI too much in your search runs the risk that you’ll come up short once you’re on the job. The more you outsource to AI, the fewer chances you’ll have to hone soft skills like being diplomatic or working well in a team. “It’s so important to balance AI and what it can offer without letting it override our critical-thinking skills,” said Goldstein. Otherwise, “we’ll be in big trouble when it comes to actually being successful on the job.”

Related Reading

Recruiters Are ‘Drinking Through a Fire Hose’ of Job Applications, Experts Say—AI Is Partially to Blame (CNBC)

Everyday Economics: Is AI to Blame for the Layoffs – or a Late-Cycle Hangover? (AOL)

AI and Your Job: Ranking the Careers Most and Least Impacted (SoFi)

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OTM20251205SW

Big in Japan

For decades, global markets have treated Japan like a sleeper car – reliable, but unassuming and in the background. But in recent years, the Japanese economy has started to make some noise — and hit some bumps along the way.

Bank of Japan (BoJ) Governor Kazuo Ueda recently rattled global markets by dropping his strongest hint yet that the central bank will raise its benchmark interest rate on Dec. 19, with traders now pricing in over 90% odds of a hike. On the heels of a massive fiscal stimulus plan from the country’s new prime minister, this further suggests Japan is heating up: Inflation seems sticky, wages are rising, and interest rates are moving higher, albeit slowly.

Headlines about Japan might seem like distant noise, but they’re important cautionary signals for U.S. investors nevertheless. Why? A quick recap will help explain.

In the wake of the burst of its asset bubble in the early 1990s, Japan was one of the first countries to pursue Zero Interest Rate Policy (ZIRP). That created an opportunity which came to be known as the Yen Carry Trade, one of the most powerful forces in modern finance. Basically, it enabled investors to borrow yen at almost no interest and then invest in higher-yielding assets such as U.S. Treasurys or even tech stocks. The trade became especially attractive as other major central banks raised rates to fight inflation in 2022-2023. Some would say it became the financial equivalent of a free lunch.

Global Benchmark Interest Rates

But as we’ve learned time and time again (most recently during the Japan-driven volatility spike in August 2024) there is no such thing as a never-ending free lunch.

If Japan raises rates, that cheap money will become more expensive. And even though Japanese rates would remain much lower than in other countries, these rate hikes are big relative moves (i.e. going from 0.1 percent to 0.5 percent is a relative increase of 400%). If the yen appreciates quickly in response, investors could be forced to sell assets in order to repay their yen loans. That could inject volatility into markets globally and drag down portfolios, even if U.S. economic growth remains positive.

Sleeping Giant Awakens?

This is relevant because Japan is the largest single foreign holder of U.S. Treasurys, with holdings of nearly $1.2 trillion.

Foreign Holders of U.S. Treasurys

While Japan only accounts for 13% of foreign Treasury ownership (and less than 5% when taking into account U.S. ownership), this is still a mountain of cash that has reliably been invested in Treasurys for years. And if Japanese investors can increasingly earn a decent, safe return on government bonds at home without worrying about currency exchange risk, they have less incentive to buy U.S. debt.

If they were to start selling Treasurys to bring that money back to Japan, that would increase the supply of Treasurys on the market, which would likely push prices lower and yields higher (absent intervention from say, the Federal Reserve). Higher yields have broad impacts on the U.S. economy, making mortgages more expensive for consumers and often weighing on stock valuations.

Lost in Translation

So, does this mean U.S. investors should start reading the minutes of the Bank of Japan’s policy meetings? No, but it’s important to understand that U.S. markets are not insulated from Japanese monetary policy.

A hawkish Fed meeting, weak jobs report, and rapid yen strengthening in late July/early August 2024 led to a rapid unwind of the carry trade and a sharp, albeit temporary, crash in global stocks.

What does that mean for your portfolio? Here’s some guidance:

•  Expect volatility: As the BoJ continues to normalize rates, there could be more pockets of volatility in Japanese markets, and that has the potential to spillover into U.S. markets.

•  Watch the dollar: Narrowing interest rate differentials between Japan and other major economies, including the U.S., should boost the yen, and in turn could weaken the dollar.

•  Consider a move: Japanese stocks with lower export sensitivity (such as small-caps) could give some protection if the yen were to meaningfully appreciate.

Japan’s potential return to monetary normalcy is a healthy sign for the global economy in the long run. But in the short term, it changes the flow of the global river of money. It’s important to know where you’re swimming if, and when, the tide turns.

Want more insights from SoFi’s Investment Strategy team? The Important Part: Investing With Liz Thomas, a podcast from SoFi, takes listeners through today’s top-of-mind themes in investing and breaks them down into digestible and actionable pieces.

SoFi can’t guarantee future financial performance, and past performance is no indication of future success. This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.

Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Mario Ismailanji is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Form ADV 2A is available at www.sofi.com/legal/adv.

OTM2025120501

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