I think there is a broader problem than ATS and AI, although all you describe are indeed part of the contribution factors.
The biggest problem is the wrong expectations from a new hire. I do not agree, that a new hire must be a super guru. Even in tech, it is the company that must have a training program to help new people get on track. I saw time a company desperate for a Java developer. They screened thoroughly the only one that was HR able to bring in about 6 months. And they concluded he was only 50% good, so he was rejected. What they ignored completely was that he was also 50% good as a Project Manager, and it was way superior to any company project manager at the time. So while helping a candidate get better in Java, he could help them with PM.
- Transferrable skills are mostly ignored. So the developer in one programming language (tool) cannot be hired for another programming language (tool) even if he wants to reskill.
- HR people usually know nothing about anything, so they become slaves of CVs, where they search for "keywords". CSM for them is totally different than PSM, so they can't get their Scrum Master.
- HR is treated like a cost center. I suggest HR must be responsible for their financial contribution.
- I created a training course for HR on how to approach recruitment (Agile Recruiter - https://www.michalvallo.eu/agile-recruiter/) After speaking at various conferences, I realized that HR people do not care about improvement, most probably nobody asks or push them to be better.
- You touched it lightly when describing the work of management. I have never met a CEO or CXO who would know and care how exactly their own HR actually does recruitment. And not only this. Excel sheet management will never beat "go and see through your own eyes" management.
- And finally, you are right. AI and ATS currently ruin the career prospects for many as these tools are not mature enough and are in the hands of the wrong people.
