a) The supply of candidates greatly outweighs demand.
b) There is no clear way to assess the individual candidate's impact on the business' ability to make money, and the employees are essentially commoditized.
These environments have been known to be toxic for a while: filtering people based on bullshit 20-page personality questionnaires, managers hiring the most desperate ones who would tolerate the most humiliation from them, while every part of the process trying to a wink-wink nudge-nudge to others in order to land their nephew on a cushy position.
While AI definitely starts another round in the battle, I would advise anyone who's sick of this bullshit to focus on the economic output of their prospective position. If a company is looking for an AI engineer that can halve the size of their inference model without losing more than 1% of accuracy, they won't waste time scoring your story about your weak sides. They will look at your thesis and hire you if you already did something similar. The problem is that most of the jobs these days are about sitting quiet in a friendly team and smiling when the CEO shows off the team to the next round of potential investors. But those jobs won't give you much growth, and will end your career once you don't look young and cool anymore.