EarnBetter Leverages Generative AI for Crafting Standout Resumes and Cover Letters

Will AI Render Resumes and Cover Letters Even Less Effective? Potentially.

Take EarnBetter as a prime example. Founded by former Credit Karma employees, this innovative startup is creating a platform that allows users to upload existing resumes or cover letters, then employs AI to reformat and tailor them for specific job listings. Co-founder and CEO Tuck Hauptfuhrer envisions EarnBetter as a way to "level the playing field for job seekers," and currently, the platform is free to use.

“We strongly believe that job seekers need increased support, not additional costs,” Hauptfuhrer explained in an email interview. “You don’t need to be tech-savvy to utilize the AI job search assistant. There are no long onboarding processes or complex prompts required. Simply upload your existing resume, and in just minutes, EarnBetter will reformat and rewrite it.”

In addition to resume enhancements, EarnBetter offers a job search tool and an editing suite for cover letters, automatically highlighting skills and experiences that align with potential roles. Users can save job openings for later, express disinterest in specific roles, or apply directly through EarnBetter.

The platform generates revenue by charging employers when candidates submit applications via its services. During its beta phase, EarnBetter saw users create over 100,000 resumes and cover letters.

“The job search market is vast, with traditional job boards and staffing agencies competing to connect people with employment opportunities,” Hauptfuhrer noted. “EarnBetter uniquely focuses on supporting job seekers by leveraging generative AI, making our service free, fast, and user-friendly.”

But what about those who invest significant time refining their resume and cover letter drafts? They may soon find themselves in the minority. A recent survey by Resume Builder indicates that nearly half of current and recent job seekers are using OpenAI’s ChatGPT to generate their job application materials.

Before AI tools became prevalent, candidates crafting their applications from scratch might have already been lagging behind. As of March 2023, only about 2% of the millions of job listings on Indeed mentioned requiring a cover letter, according to Vox. Furthermore, many hiring managers report that they often do not read cover letters; they only check to see if one is included when explicitly requested. When they do review these documents, it’s estimated that recruiters spend an average of just six seconds on a cover letter.

Despite these trends, it's important to consider that AI-driven tools like EarnBetter may provide those who use them—a privilege not granted to everyone—with a competitive edge in the job market by streamlining applications that necessitate resumes and cover letters.

However, Hauptfuhrer disagrees with this perspective. He asserts that EarnBetter benefits employers and job seekers alike by ensuring that resumes and cover letters are “professionally written, cleanly formatted, and tailored to each position” (though what constitutes “professionally written” can be subjective).

“In this way, we help employers evaluate candidates based on the relevance of their skills and experiences rather than their formatting abilities,” Hauptfuhrer explained. “Our AI job search assistant can also identify roles that candidates may qualify for beyond their current search criteria, broadening their options and expanding the talent pool for employers.”

Venture capitalists appear to see promise in EarnBetter’s model. Investors including Andreessen Horowitz, Abstract Ventures, and Figma founder Dylan Field contributed to the startup's $4.5 million seed round. Hauptfuhrer shares that these funds will be utilized to expand EarnBetter’s team and develop new AI-driven products.

“EarnBetter is an AI-native company committed to exploring how AI advancements can enhance the job search experience,” Hauptfuhrer concluded. “Generative AI is incredibly powerful, and by creating a product that is free, fast, and user-friendly, we aim to make the benefits of AI accessible to all job seekers.”