Someone created an agent system that creates targetted resumes for every job application.

On one hand, this is not exactly an abuse of the system. The human is supposed to review each PDF and application form before sending it out. It benefits the applicant by presenting the most relevant information to the recruiter, and reduces the effort of tailoring the resume for each application.

However, someone can easily take this approach and make it completely automated. I think what is likely to happen is, lazy applicants will simply rubber stamp each AI application and flood the ATS.

This sits somewhere in the grey area for me.