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Not only are tips getting bigger in the U.S., but Americans also tip for a wider range of services.
In other countries, however, a gratuity remains a small, often optional gesture.
Here’s how much people tip in some of the world’s top travel destinations.

Owen Franken | Corbis Documentary | Getty Images

Some U.S. workers rely on tips, some don’t

In most other countries, including throughout Europe, “tipping remains a small gesture of gratitude,” said Jaime Peters, Maryville University’s assistant dean of accounting, finance, and economics. That’s in contrast to the U.S., where “tipping is almost obligatory.”
In part, that’s because tips make up a larger part of workers’ pay in the U.S., particularly in industries like entertainment, food service and leisure and hospitality.  

In fact, in some of those jobs, workers make less than minimum wage because they are considered “tipped employees.”

Under federal law, employers can pay workers as little as $2.13 per hour — much less than the minimum wage — if the tips they receive bring them up to a baseline salary. (Some states are now increasing the hourly minimum wage for tipped employees or eliminated tipping wages altogether.)
This applies primarily to restaurant workers, although other employees who receive more than $30 a month in tips may qualify.
“There are people other than servers that are getting a substandard wage but not many, it’s mostly waiters and maybe bartenders,” Lynn said. 

For these workers, tips can boost wages by about 25%, according to data from payroll platform Gusto.
“Tips play a significant role in compensation, although it can vary quite a bit,” said Luke Pardue, an economist at Gusto. 

Here’s how much people tip around the world

In other countries, that’s not the case. Workers don’t rely on tips for income and therefore a gratuity remains just that, a token of gratitude.
Before heading abroad, Peters advises travelers to research the tipping guidelines and standards at your destination and carry both cash and credit cards so you can tip appropriately.
From Paris to Puerto Vallarta, here’s a look at the tipping expectations in some of the top travel destinations around the world, based on TripAdvisor data pulled for CNBC: More

Credit card interest rates have climbed to record levels.
That’s bad news for households that carry balances from month to month.
These tips can help debtors break the borrowing cycle.

Asiavision | E+ | Getty Images

The Covid-19 pandemic separated the haves from the have-nots when it comes to finances.
Research shows that trend is continuing when it comes to debt, particularly credit cards.

More than one-third of Americans — 35% — say they are carrying their highest level of debt ever or close to it, according to a Northwestern Mutual survey of 2,740 adults.
The top source of personal debt, excluding mortgages, is credit card debt, with 28% of respondents, the research found.
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On the other hand, 43% of adults with personal debt say those balances are at their lowest level ever or close to it.
The results reflect the aftermath of the Covid-19 pandemic that posed financial challenges for some, such as reduced or lost employment, and reduced financial pressures for others, with lower mortgage rates and the pause of federal student loan payments, noted Alap Patel, a Chicago-based wealth management advisor at Northwestern Mutual.

“We were all in the same storm, but not everyone was in the same ship,” Patel said.

Credit card interest rates at record highs

With federal student loan payments set to restart in October, credit card balances also pose a big risk for some individuals and households, according to Ted Rossman, senior industry analyst at Bankrate and CreditCards.com.
The average credit card debt is $5,733 per person, according to TransUnion. Notably, Americans have set a record for total credit card debt with $986 billion in the fourth quarter of last year — which held constant in the first quarter, Rossman noted.
“Every other time in the past 20 years, credit card debt fell in the first quarter,” Rossman said
That speaks to the challenges of high inflation and higher interest rates, he said.

“It’s just a tough combination for a lot of people,” Rossman said.
Credit card interest rates now average 20.55% — the highest since Bankrate started tracking them in 1985, he said.
“Credit card rates rose more last year than any other year on record,” Rossman said.
The Federal Reserve is expected to continue to raise interest rates, which would make interest on those debts even more expensive.

‘The minimum payment math is brutal’

Bankrate’s research has found roughly half of credit card holders are paying their credit card bills in full every month, which means they are benefiting from the rewards and buyer protections those accounts offer without compromising their personal bottom lines.
Yet the other half of credit card borrowers are carrying expensive debt that can really add up.

A credit card borrower with the average $5,733 credit card balance at 20.55% will be in debt for over 17 years if they make just the minimum payments every month, according to Rossman.
They will also pay about $8,400 in interest on top of the $5,733 balance, he said.
“The minimum payment math is brutal,” Rossman said.
To shed those balances sooner, these tips can help.

1. Opt for zero percent balance transfer offers

The top tip for credit card debt holders, according to Rossman, is to try to transfer your credit card balance to another card offering a 0% introductory rate, which may last as long as 21 months. “Despite this rising rate environment, these offers remain abundant,” Rossman said. However, you will need good to excellent credit to qualify.

2. Come up with a debt payoff plan

When it comes to paying down credit card debt, two plans are typically popular — the snowball or avalanche methods, noted Patel. The snowball method consists of paying the smallest debts first, while the avalanche approach calls for prioritizing the highest interest rate balances. Alap said he advises his clients to pick the method likely to be the most successful for them.

3. Seek professional help

Even your credit history is not stellar, there are other resources that can help, Rossman said.  Non-profit credit counseling and sources like Money Management International or GreenPath Financial Wellness may help you knock down your interest rate to as low as 7% to 8% over four to five years, Rossman said.

4. Keep saving

Even as you’re attacking credit card balances or other debts, it’s important to set cash aside, Alap said. An emergency fund with three to six months’ of expenses is ideal. Credit card debt holders should strive for at least two months’ expenses to fall back on in a pinch, he said. More

The Nasdaq 100 index comprises 100 of the largest nonfinancial companies that trade on the exchange and is often seen as a proxy for growth stocks.
The index has surged about 37% year to date, well above the S&P 500 and the Dow Jones Industrial Average.
The three biggest names appear to account for more than 30% of the index combined.

Michael Nagle | Bloomberg | Getty Images

The rapid rise of a few already-massive tech stocks this year is causing Nasdaq to make unusual adjustments to its popular growth index.
The company announced July 7 that it will do a special rebalance of the Nasdaq 100 Index, which will take effect before the market opens July 24.

The Nasdaq 100 index comprises 100 of the largest nonfinancial companies that trade on the exchange and is often seen as a proxy for growth stocks. The index has surged about 37% year to date, well above the S&P 500 and the Dow Jones Industrial Average.
Nasdaq said a special rebalance can be used to “address overconcentration in the index by redistributing the weights.”
While the index is already rebalanced on a quarterly basis, Nasdaq tries to keep the five biggest stocks below a 40% combined weighting in one rebalance per year designated as the annual adjustment, according to the firm’s methodology. The five biggest stocks appear to be over that threshold currently, according to the holdings of the Invesco QQQ ETF, which tracks the index.

Invesco QQQ Top Holdings

Ticker
Stock
Weight in fund

MSFT
Microsoft
12.67%

AAPL
Apple
12.31%

NVDA
Nvidia
6.97%

AMZN
Amazon
6.73%

TSLA
Tesla
4.41%

Source: Invesco

The QQQ’s holdings show how concentrated the index has become. The three largest positions — Microsoft, Apple and Nvidia — account for more than 30% of the fund combined, as Nvidia’s stock price has nearly tripled this year. The top 10 holdings account for a combined weighting of nearly 59%.
This is the third special rebalance on record for the Nasdaq 100. The company said it will announce new weightings July 14.

“The special rebalance is part of the Nasdaq-100 methodology and ensures that index-tracking funds maintain compliance with fund diversification rules. Nasdaq-100 special rebalances have taken place previously in 2011 and 1998,” Cameron Lilja, global head of index product and operations at Nasdaq, said in a statement.

Stock chart icon

The Nasdaq 100 has risen sharply this year.

There are several index funds that track the Nasdaq 100, including the QQQ, which has about $200 billion in assets under management. More

The Consumer Financial Protection Bureau fined Bank of America $150 million for charging customers so-called junk fees, among other violations.
President Joe Biden has said his administration would crack down on junk fees — including those from banks as well as hotels, airlines and other service providers.
And yet, when one fee goes down another pops up, says Bankrate’s Ted Rossman, in “a game of whack-a-mole.”

What are junk fees?

Junk fees are additional, often hidden, charges that can come from a range of lenders. They are not typically included in the initial price of a transaction but are tacked on at the time of payment.
“Consumers are encountering these ‘surprise’ charges more often than they might expect, in everything from concert ticket surcharges to airline seat selection fees, credit card late fees, bank overdraft fees, hotel resort fees and more,” according to Ted Rossman, senior industry analyst at Bankrate.

Yet even if these fees were capped or even banned entirely, it’s unlikely that consumers would save money as a result, he said.

Overdraft fees are a good example of a ‘game of whack-a-mole’ when it comes to fees.

Ted Rossman
senior industry analyst at Bankrate

“Overdraft fees are a good example of a ‘game of whack-a-mole’ when it comes to fees,” Rossman said.
When many financial institutions lowered their overdraft and non-sufficient funds fees or eliminated them altogether, the average overdraft fee fell while ATM surcharges jumped to a record high, Bankrate found.
In most cases, even with more transparency, the all-in cost to consumers would likely remain the same, according to Rossman.

Cracking down on junk fees

President Joe Biden has said his administration would crack down on junk fees — including those from banks, as well as hotels, airlines and other service providers.
“Junk fees may not matter to the very wealthy, but they matter to most other folks in homes like the one I grew up in, like many of you did,” Biden said in his State of the Union address earlier this year. “They add up to hundreds of dollars a month.”
Biden also called on Congress to pass the Junk Fee Prevention Act, which will reduce unexpected charges, such as airline booking fees; service fees for concert tickets; early termination fees for TV, phone and internet services; “resort fees” at hotels; and “excessive” credit card late fees.
Last year, the CFPB said it was scrutinizing certain fees that catch customers by surprise — and are “likely unfair and unlawful,” according to the agency.

The consumer watchdog proposed a new rule prohibiting banks from charging surprise overdraft fees on debit transactions and reducing typical late fees from roughly $30 to $8, saving consumers as much as $9 billion a year, according to the White House.
“Despite recent progress in addressing overdraft fees, the job is far from complete,” Nadine Chabrier, the Center for Responsible Lending’s senior policy counsel, said in a statement.
“The Consumer Financial Protection Bureau took a big step by banning surprise overdraft fees,” she said. “We are encouraged that the consumer bureau announced it will take additional steps, and we urge the bureau to place strong limits on the size and frequency of these fees.”
More than a quarter of checking account holders, or 27%, are regularly hit with fees, which can add up to an average of $24 per month, or $288 per year, according to a another survey from Bankrate. 
The average overdraft fee costs $29.80, Bankrate’s research found, while the average nonsufficient funds fee is $26.58.

Some banking interest groups countered that offerings such as overdraft protection provide a much-needed safety net.
“The president’s use of the term ‘junk fee’ is overly broad and ignores the needs of low-income and middle-income consumers who depend on these services to resolve short-term financial difficulties,” Jim Nussle, president and CEO of the Credit Union National Association, said in a statement.
“It does not consider the costs involved in providing needed financial services that consumers depend on.”
Without the option of overdraft protection, “people are more likely to turn to predatory lenders, hurting the same people the administration seeks to help,” Nussle said.
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While summer jobs let young workers get a feel for earning money, it is also an opportunity to give them their first lessons on investing.
Here’s why some experts say Roth IRA accounts can be particularly beneficial for younger workers.

Kmatta | Moment | Getty Images

For high school and college students, summer jobs are an opportunity to get used to earning a paycheck.
With that earned income, those young workers are also eligible to start investing in a Roth IRA.

Roth individual retirement accounts let workers set aside post-tax earnings towards retirement. In 2023, eligible workers may put up to $6,500 in a Roth IRA.
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For young workers, opening a Roth IRA offers distinct advantages, experts say.
“The greatest money-making asset any person can possess is time, and young people have more of it than anyone,” said Ed Slott, an IRA expert and certified public accountant.
“They should capitalize on that time,” he said.

By starting to invest early, especially with the help of a parent or grandparent, they’re more likely to continue that habit into their professional earning years, Slott said.

A “strong” summer job market for teens is expected this season, according to a forecast from Rhode Island College. That includes a projected 33.6% teen employment rate over the summer months, up from 32.7% in 2022.
Teen wages have also increased in recent years to real median weekly pay of $300 in 2022, a 7% bump from $280 in 2019, the research notes.
To start investing all or some of those earnings in a Roth IRA, teens and the adults in their lives would be wise to consider several factors, experts say.

1. Study up on Roth IRA rules

Roth IRAs offer a distinct advantage in retirement — the opportunity to take tax-free withdrawals, since the money invested was already taxed.
But Roth IRAs also offer other advantages, particularly the ability to take contributions out at any time before retirement, tax and penalty free. (Earnings may be withdrawn tax free only after the account holder is age 59½, and it has been five years since the tax year of the first Roth IRA contribution.)
While teen workers are a long way from that age, getting started now is helpful because the five-year rule applies to the first contribution to any Roth IRA. It is a good idea to open a Roth IRA now to get the five-year rule going, Slott said.

Михаил Руденко | Istock | Getty Images

If you contribute even a nominal amount to a Roth IRA in 2023, that will count as your first year of the five years, Slott said.
Importantly, the limit that may be contributed to a Roth IRA is up to $6,500 for 2023, but young workers who earn less can contribute only up to the amount they earn.
Eligibility to contribute to a Roth IRA also generally depends on how much you earn. Because workers may no long qualify for Roth IRAs later in their careers when their incomes are higher, that also makes it advantageous to get started with these accounts early.

Of note, the earned income that qualifies for Roth contributions can be W-2 earnings or self-employment income. But money that comes from babysitting or mowing lawns, for example, must be reported to the IRS in order to qualify for Roth IRA contributions.
“It actually is paired very well for children earning income for the first time during the summer,” Kelly Lannan, senior vice president of of emerging customers at Fidelity Investments, said of Roth IRA accounts.
Fidelity typically sees a roughly 30% increase in openings of Fidelity Roth IRA for Kids accounts from June to August, compared to the late April, early May time frame, according to the firm.

2. Loop in parents or grandparents

Generally, minors will need an adult to open and manage a Roth IRA on their behalf. The account is typically transferred to the child’s name when they reach age of majority, usually 18 or 21 depending on the state.
Having a parent, grandparent or other guardian involved can also help in other ways.
Slott said he started his own daughter with a Roth IRA when she started working one summer. He let her spend the modest sum she earned, then contributed that same sum to a Roth IRA on her behalf.
The strategy had two benefits, Slott said. It established the Roth IRA for the future and helped show the value of earning and saving.

The greatest money-making asset any person can possess is time, and young people have more of it than anyone.

IRA expert and certified public accountant

“They’re more likely to continue it, especially if a parent or grandparent set it up for them, into their higher earning years,” Slott said.
Adults who contribute money on behalf of a minor must be mindful that they should not exceed the earnings. So if a teen earns $4,000, for example, a parent or grandparent can only put in up to that sum.
However, if a teen earns more than $6,500, the maximum annual limit for 2023, contributions to the Roth IRA are capped at $6,500.

3. Consider other kinds of accounts

While Roth IRAs offer distinct advantages, opening a traditional savings account is also a popular route for teens looking to set aside money from their first jobs, Lannan said.
Those who open those accounts today have a distinct advantage with higher interest rates.
Many financial institutions also offer accounts specifically targeted at young savers and investors.
Early exposure to such accounts offer teens a way to start dabbling in investing and to learn by doing, Lannan said. For example, by purchasing fractional shares, which include just a portion of a stock, teens may gain experience with trading by investing just a few dollars, Lannan said. More

Life Changes

The Supreme Court’s ruling on affirmative action has raised more questions about legacy admissions.
Today, more Americans disagree with legacy admissions.
“If you can’t use race for Black and Latino students, then you can’t use race for wealthy white students either,” says Alvin Tillery, director of Northwestern’s Center for the Study of Diversity and Democracy.

After the Supreme Court’s ruling on the affirmative action admission policies of Harvard and the University of North Carolina, decades-old legacy preferences are facing new challenges.
The court’s ruling was considered a massive blow to efforts to boost enrollment of minorities at American universities through policies that considered applicants’ race.

Now, a civil rights group is contesting the practice of giving priority to the children of alumni at Harvard University, saying it discriminates against students of color by giving an unfair boost to the mostly white children of alumni.
“Your family’s last name and the size of your bank account are not a measure of merit, and should have no bearing on the college admissions process,” Ivan Espinoza-Madrigal, executive director of Lawyers for Civil Rights, said in a statement announcing the civil rights complaint.

Fewer people think legacy should factor into admissions

Today, more Americans disagree with legacy admissions.
To that point, 75% said whether a relative attended the school should not factor into admissions decisions, up from 68% in 2019, according to a report by the Pew Research Center.
In its suit against Harvard, Lawyers for Civil Rights said it was challenging the “discriminatory practice of giving preferential treatment in the admissions process to applicants with familial ties to wealthy donors and alumni.”

Legacies are nearly six times more likely to be admitted, the complaint said.
“This preferential treatment overwhelmingly goes to white applicants and harms efforts to diversify color,” added Michael Kippins, litigation fellow at Lawyers for Civil Rights.
Officials at Harvard declined to comment on the complaint.

Challenges to legacy admissions mount

Several bills at the state and federal level have also taken aim at the practice, including a recent proposal in Massachusetts that would charge colleges a fee for considering legacy status or an applicant’s relationship to a past, current or prospective donor.
The NAACP last week called on more than 1,600 U.S. public and private colleges and universities to commit to increasing the representation of historically underrepresented students and end the practice of legacy admissions.
“That signifies a huge stride toward future insurance that every student, regardless of their race, ethnicity, gender identity, sexual orientation, disability, religion, or socioeconomic status, has an equal opportunity to learn, grow, and thrive at a higher education institution,” Ivory Toldson, director of education innovation and research at the NAACP, said in a statement.

The legacy advantage is mostly a white entitlement.

Alvin Tillery
director of Northwestern’s Center for the Study of Diversity and Democracy

“There’s no doubt that the legacy advantage is mostly a white entitlement,” said Alvin Tillery, a political science professor and director of Northwestern’s Center for the Study of Diversity and Democracy.
However, these preferences are not based explicitly on race, which distinguishes the practice from the overt race-conscious admissions programs that were recently rejected by the Supreme Court, noted Don Harris, associate dean and equity, diversity and inclusion liaison at Temple University School of Law.
Yet, “it’s clear that they have a disproportionate impact on race,” added Harris, referring to what Chief Justice John Roberts wrote in his opinion about preventing ways around affirmative action: “What cannot be done directly cannot be done indirectly.”

Legacy admissions ‘could be deemed unconstitutional’

Since the practice of legacy admissions has indirect racial implications, these challenges may have legal merit, according to Jeanine Conley Daves, an attorney at New York-based firm Littler.
If there is no compelling interest for such programs and they are having a negative effect on the college application process, “then similar to race-conscious admissions programs, it could be deemed unconstitutional,” she said.
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“The reality is we’ve reached a pretty good consensus on the use of identity in college admissions,” said Tillery, who is also a Harvard graduate.
“If you can’t use race for Black and Latino students, then you can’t use race for wealthy white students either,” Tillery added.
The advantages that stem from legacy admissions can be hard to quantify but at some of the most selective colleges, legacies comprise as much as 10% to 20% of the incoming class, according to data from the Associated Press. A few institutions, including Amherst College, Massachusetts Institute of Technology and Johns Hopkins University, have phased it out entirely.
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With no winner for the most recent Powerball drawing, the top prize has jumped to an estimated $650 million.
Those winnings will drop significantly after the IRS takes its cut.
Before winners see a penny of the multimillion-dollar jackpot, there’s a mandatory 24% federal withholding that goes to the IRS.

The Powerball jackpot for July 10, 2023, has hit $650 million. Here, a cashier at a 7-11 store in Milpitas, California, issues Powerball tickets in 2022.
Anadolu Agency | Anadolu Agency | Getty Images

With no winner for the Powerball jackpot, the prize has jumped to an estimated $650 million ahead of Monday’s drawing. Of course, those winnings will be smaller once the IRS takes its share.
The jackpot jumped to $650 million from $615 million without a winning ticket Saturday. If you beat the odds, you can now pick between a lump sum of an estimated $328.3 million or an annuitized prize that pays out yearly and is worth $650 million.

Your chances of winning the grand prize are 1 in about 292 million.
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“One thing that’s unique about the lottery is that you can accept it over a 30-year period with annuity payments,” said certified financial planner John Chichester Jr., founder and CEO of Chichester Financial Group in Phoenix. “That offers a lot more flexibility in how you pay the taxes.”
Rather than a larger, upfront tax bill, you can take the annuity payment and invest the money in a tax-efficient manner, said Chichester, who is also a certified public accountant.

Roughly $78.8 million goes to the IRS

Before winners see a penny of the multimillion-dollar jackpot, there’s a mandatory 24% federal withholding that goes to the IRS. The withholding applies to winnings of more than $5,000.

If you choose the $328.3 million cash option, the 24% withholding automatically reduces your cut by about $78.8 million. However, many taxpayers wrongly assume they’re off the hook after that 24%, Chichester said.
“That 24% comes off the top, but you’re still responsible for the other 13% at some point,” he said.

Here’s why: Millions in lottery winnings will push you into the top federal income tax bracket. For 2023, the 37% rate applies to taxable income of $578,126 or more for single filers and $693,751 or higher for married couples filing together. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
Of course, the 37% doesn’t apply to all of your taxable income. For 2023, single filers will pay $174,238.25 plus 37% of the amount over $578,125. As for married couples filing together, the total owed is $186,601.50 plus 37% of the amount above $693,750.
The remaining tax bill depends on several factors but could easily represent millions more.

You may also owe state taxes, depending on where you live and where you bought the ticket. While some states have no income tax or don’t tax lottery winnings, others have top-income state tax brackets exceeding 10%. 
The Powerball isn’t the only chance to win big. The jackpot for Tuesday night’s Mega Millions drawing now stands at $480 million. The chance of hitting the jackpot in that game is roughly 1 in 302 million. More

Photo: Envato Elements

The U.S. economy added 209,000 jobs in June. However, some workers took slightly longer to land new jobs, one economist said.
While the labor market cools, job seekers can use AI tools to better their chances of landing a new full-time job.
“There are definitely ways that you should use it in your job search, but there are ways that it can backfire,” said career expert Suzy Welch.

Photo: Envato Elements

What’s going on in the job market

The U.S. economy added 209,000 jobs in June, while the unemployment rate trickled down to 3.6%. Even though the number of jobs came in lower than expected, it demonstrated “a strong but moderate demand,” showing signs that the labor market is “moderating in a sustainable fashion,” said Indeed economist Nick Bunker.
“Nothing is guaranteed, but the U.S. labor market continues to point toward a slower, but more sustainable pace of economic growth,” Bunker said.

The median duration for unemployment was roughly flat, meaning it took slightly longer for some workers to find a job, compared with last year, when people were landing jobs very rapidly, he said.

“In many ways, the labor market of 2021 and 2022 was an anomaly and isn’t really a good baseline for understanding what a sustainable and healthy labor market looks like,” said Bunker.

Practice with A.I. to excel in candidate interviews

The pandemic drove the adoption of digital interviewing via Zoom and other platforms, said Will Rose, chief technology officer at Talent Select AI. As part of that, the use of AI tools that provide different types of analysis for those interviews are becoming more embedded.
AI-led or fully automated interviewing processes are being adopted, but the companies using this technology remain a minority for now, said Rose.
More often, a company might use AI systems that look at different things designed to identify top applicants, he said. For asynchronous interviews — video interviews where you either talk to a machine or upload recorded answers — the artificial intelligence software focuses specifically on words used by the candidate.
With that in mind, research certain keywords relevant for that job and incorporate them in your interview answers, speaking to the areas that are in the job posting, Rose said.
“Highlight why you as a candidate shine,” he said. Underscore your qualifications, and ensure you give robust answers and anecdotes in the process.

You can also use AI tools as a personal assistant researcher to help you prepare for an interview, said Welch, who is also a CNBC contributor.
“Some AI tools will coach you before the interview. You should use every tool to practice,” she said.
Even if you’re not speaking with a human being in real time, still dress and speak as if you’re in a formal, in-person interview and be mindful of elements such as background and lighting. These videos are often still reviewed by recruiters and hiring managers, Rose said.

Don’t trust A.I. to write your resume, cover letter

In the same way a candidate might seek out a resume coach or consultant who will help prepare them for the job interview, a candidate should not shy away from seeking help in AI technology for these purposes — however, don’t trust the AI to completely write the documents.
“I think you really can hurt yourself [in areas] by using AI — and one is in your cover letter,” Welch said.
Hiring managers and recruiters who receive correspondence that is clearly completely written by software can be turned off by that, said Welch, especially if the AI plagiarizes portions or includes errors or falsehoods.
Companies are looking for authenticity in candidates, and submitting material completely engineered by bots will not “push you to the top of the pile,” she said.
Instead of letting AI take the reins, use it as a starting point to ensure you have all the right keywords and both your resume and cover letter have proper structures. Afterward, review and add your own words.
“AI doesn’t know your experience and … the certain specific anecdotes that highlight why you’re a great candidate,” Rose said.

Ask hiring managers how A.I. is used in the process

New York City recently enacted a law that requires companies to conduct a bias audit in the AI system, make the results public, clarify the involvement of AI in the hiring process for job seekers, and specify the type of data they collect and its use.
“Because New York City is the largest city in the country, this new law is having national implications,” Rose said.
In the meantime, he said, candidates should not be afraid to ask hiring managers if AI played a role in the hiring process and how those systems are being used in the decision process until more transparency laws take effect.
“It’s fair game,” he said.

In fact, both parties — the employer and candidate — should avoid leaning too hard on the use of AI in the hiring process.
“There should be some caution in terms of fully automating that [process] and taking that human element out,” Rose said. “It’s more about the experience that you’re giving to the candidate.”
“Whether AI exists [in the hiring process] or not, the jobs always go to the most prepared candidates who come in with the best sense of the job,” he said. More