It seems like small companies using this will probably fail. They will hire batches of AI-approved, but actually bad candidates. Or they will go long periods

It seems like small companies using this will probably fail. They will hire batches of AI-approved, but actually bad candidates. Or they will go long periods without being able to hire for core positions because they "can't find anyone". Both eventually result in the company going out of business. But government or big companies, well, its just bad news there, since they can't fail. They will just get more incompetent.