From both sides of the table, I have a strict philosophy that the candidate's time is the more valuable commodity. Thus in any situation where a company is offloading internal effort but still requiring the candidate to put in time & effort, that's a company I would not want to work for. This is the ultimate expression of that bullcrap.
I get the impression this is because it's too easy for candidates to apply for a job. I wonder if there is a way to put pressure on job seekers to be more selective about where they apply? (Or otherwise for a company to allow a candidate that's only applied to a handful of jobs to skip the AI?)