I think many people are at least able to see how stupid this is.

But I guess if put a tad more subtle, the majority of recruiters and managers might fall for it. “Candidates which prefer yellow peppers over green ones have be found by our AI to be the more capable receptionists!” /s

(Another thing I see is that I have seen a lot of non-trivial algorithm applications that are now touted as “ai” stuff, like basic pattern recognition, algebraic solvers, PCA, board game strategies, path planning in public transport networks, image enhancement, weather forecasts, SAT solvers, and so on… some of that might have resulted out of “ai” research, often as many as forty years ago, and some not. But most people were never aware of these things, much less how they work. And now it is all touted as “ai” as in GenAI. This will only add to the confusion. The better term would be “advanced information processing algorithms”.)