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Aipedia: Recruitment agencies
An agency that uses AI to rewrite a CV is responsible for what the new version says, and must not present skills or experience the candidate does not have. A hirer who relies on an inflated CV may hold the agency responsible.
Part of: AI in recruitment agencies
In short
Agencies commonly reformat CVs into a branded template before sending them to clients, and some may use generative AI to rewrite and improve them. The tools can add skills, upgrade job titles or invent achievements that sound plausible. REC Code principle 2 requires honesty and transparency, and Conduct Regulations reg 21 requires the agency to pass the hirer the information it has confirmed, in writing within 3 business days. If a hirer appoints on an inflated CV and suffers loss, it may claim misrepresentation or negligence against the agency. PI usually responds to negligence, but deliberate dishonesty is commonly excluded.
Reformatting has long been standard: removing contact details, applying the agency's branding and summarising the candidate. Generative AI goes further. Consultants ask a tool to "make this stronger for a senior role" or to tailor the CV to a job description. The tool rewrites bullet points, adds keywords from the advert and fills in plausible detail. Unless someone compares the result line by line with the original, invented content can reach the client.
Agencies may also use AI to anonymise CVs for blind shortlisting, stripping names, ages and photos. That can support fairer selection, but the same tools sometimes summarise or reorder content in ways that change its meaning, such as merging two short roles into one longer one. Any automated edit should be checked against the original before it goes out.
Illustrative: a consultant asks an AI tool to tailor a candidate's CV for a project manager role. The tool adds experience of a specific project methodology and a professional certification, drawn from the job description. The consultant sends it without checking. The client appoints the candidate partly because of that experience. When a project fails, the client finds the candidate never had the certification and never told the agency they did. The client claims recruitment fees and project losses from the agency, and the candidate says they never approved the CV.
A hirer that relied on an agency's CV may allege negligent misstatement, misrepresentation or breach of the terms of business. Key questions will be what the agency confirmed under reg 19, what it said under reg 21, and whether it knew or should have known the content was wrong. The candidate may also complain that the agency misrepresented them or processed inaccurate data. For examples of hirer claims, see recruitment agency bad hire claims.
A recruiter's PI policy usually responds to claims alleging a negligent act, error or omission in the professional service, which can include careless reliance on an AI rewrite, subject to the wording. Deliberate or reckless dishonesty is commonly excluded, and insurers may treat repeated knowing inflation differently from a one-off mistake. Fee refunds and rebates under the terms of business may not be covered at all. There is no statutory PI requirement for agencies.
Apex arranges PI for recruitment agencies; a broker can review how your policy treats misrepresentation claims arising from AI-edited documents. See the AI in recruitment agencies hub, AI checks and reg 19 and AI-summarised references.
It can reformat and improve presentation, but it must not add skills, experience or qualifications the candidate does not have. REC Code principle 2 requires honesty, and the hirer is entitled to rely on the information the agency confirms under reg 21.
Yes. Sending the final version to the candidate for approval catches errors, protects the agency if the content is later disputed and keeps the candidate's data accurate. Keep the approval with the original CV.
A claim alleging negligence, such as careless reliance on an AI rewrite, may be covered subject to the wording. Deliberate dishonesty is commonly excluded, and fee refunds under the terms of business may fall outside cover.
It can be, if the tool's provider can use or keep the data and you have no lawful basis or contract in place. The REC advises keeping sensitive or confidential data out of free AI tools, and reg 28 protects work-seeker confidentiality.
Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.
Start a PI quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.
