ISE’s Student Recruitment Report 2026 shows that graduate jobs have stabilised, but AI misconduct and record applications are disrupting recruitment.
This year’s Student Recruitment Report 2026 found that while AI is an increasingly acceptable tool for candidates looking to gain an edge in the hiring process, the proportion of employers reporting misconduct has reached a new high.
Some 92% of employers suspected or confirmed student misconduct in assessment and selection processes, compared with 85% in 2025 and 78% in 2024. While reports of occasional misconduct jumped to 47% from 27% in 2024, employers with no concerns more than halved (22% to 8%).
The most common forms of misconduct were the unauthorised use of AI during interviews and online assessments. In response, employers are increasingly providing guidance to help students understand what is acceptable and unacceptable use of AI (82%, up from 55% in 2025).
This suggests employers are moving beyond simply policing AI use and towards helping candidates understand the boundaries.
Mounting pressure on students and employers
Students using AI to stand out in job applications comes as competition for jobs remains at a record high with 141 applications per graduate role and 96 per apprenticeship. Competition was highest in London, with 172 applications per graduate vacancy, and in financial and professional services, with 158.
However, despite the high competition ISE found the graduate labour market has stabilised, with recruitment up 4% following the 8% decline last year. Yet, growth was uneven and driven by a small number of employers. While 45% increased their graduate intake, 15% maintained it and 40% made reductions. Employers forecast 7% growth in 2026/2027, again driven by only a few employers.
To improve their chances of employment, graduates are also applying for roles aimed at school and college leavers - 62% of employers reported an increase this year, compared with 40% in 2025. However, growth in apprentice hiring continues to slowdown. Following the 8% increase in roles reported in 2025, this year hiring increased by 4% and employers forecast 2% for 2026/7.
ISE’s joint CEO Stephen Isherwood highlighted the impact AI is having on recruitment with implications for all involved, “There’s no doubting that the graduate jobs market is tough, but it’s not quite as bad as you perhaps think it is. The number of vacancies has stabilised, but AI has become problematic for everyone in the hiring process.
“Tools that enable candidates to apply for multiple jobs at once are driving up the competition and pressure on students. While it’s understandable that candidates want to use AI, over-reliance can have the opposite effect. Employers are faced with applications that look the same and, in some cases, AI is being used to the point where it misrepresents a candidate’s skills and abilities.”
Employers are redesigning recruitment
The combination of employers challenged with managing mass applications and developing hiring that maintains integrity is disrupting recruitment with 77% reviewing or redesigning processes.
Employers are using a range of measures to tackle misconduct, including more personal questions, time limits and randomised questions.
To manage high volumes of applications, some are also using automated eligibility screening, shortening application windows or closing campaigns early, and limiting the number of roles or programmes candidates can apply for.
AI adoption is still relatively limited – but likely to grow
Despite concerns among candidates about AI being used to screen them out, only 16% of employers currently use AI in recruitment and 52% don’t plan to adopt it. Even in the most advanced area, only 10% of game-based assessments are fully AI-driven.
However, AI adoption is likely to accelerate, with 29% of employers planning to introduce the technology into recruitment within the next year.
What should employers and educators tell students about using AI?
The findings highlight the importance of students understanding when and where it is appropriate, and not appropriate, to use AI.
Employers increasingly accept the use of AI in the hiring process (up to 64% from 46% last year), particularly to help write CVs, cover letters and applications. Candidates are usually not allowed to use AI during online assessments, interviews or assessment centres.
Claire Tyler, head of insights at ISE, led the research. She advised, “When applying for jobs it’s really important to understand how and where your potential employer is happy for you to use AI. Used appropriately, it can be a useful tool, used poorly, it can hinder progress and damage employment prospects. Above all, be yourself. Employers don’t expect candidates to be perfectly polished or to have every skill they are looking for, they want to understand what you can genuinely bring to the role.”
5 tips for students
- Start with self-awareness: Understand your interests, skills, experiences, and career motivations before using AI.
- Use AI to enhance, not create: Refine and strengthen applications, but only include skills and achievements you can genuinely evidence.
- Demonstrate authentic motivation: Be prepared to explain why the role and organisation appeal to you personally.
- Maintain your own voice: Use AI for structure and proofreading, ensuring the final application reflects your personality and experiences.
- Authenticity is your advantage: Candidates stand out when they combine AI tools with honest self-reflection, personal insights, and real examples.
About ISE’s Student Recruitment Report 2026
ISE Student Recruitment Survey is the largest survey of student employers in the UK. The 2026 report is published 14 October 2026, analysing data from 155 employers, covering more than 1.7 million applications and 31,577 hires during the 2025/26 student recruitment cycle.