How to Test an AI Cover Letter Against ATS Software: Complete Guide [2025]

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TL;DR - Quick Answer
To test an AI cover letter against ATS software, use dedicated ATS scanning tools like Jobscan, Resume Worded, or ResumeGo that analyze your cover letter for keyword optimization, formatting compatibility, and overall ATS score. These tools compare your cover letter against job descriptions, identify missing keywords, and highlight formatting issues that could cause automatic rejection. Most ATS systems parse cover letters similarly to resumes, looking for relevant keywords, proper formatting, and clear structure that their algorithms can read correctly.
The average ATS rejects 75% of applications before a human ever sees them, making testing crucial. AI-generated cover letters are particularly vulnerable because they may use formatting, fonts, or structures that ATS systems struggle to parse. By testing before submitting, you can identify issues like missing job-specific keywords, incompatible file formats, or hidden formatting that triggers automatic rejection. This guide covers the best tools, step-by-step testing processes, and optimization strategies to ensure your AI cover letter passes through ATS screening and reaches human recruiters.
Key Takeaways
ATS testing is essential: Over 98% of Fortune 500 companies use ATS software, and 75% of applications are rejected before reaching human eyes—testing your cover letter ensures it survives this automated screening.
Use dedicated scanning tools: Free tools like Jobscan, Resume Worded, and ResumeGo provide ATS compatibility scores, keyword analysis, and specific recommendations for improvement.
Keywords matter most: ATS systems prioritize exact-match keywords from job descriptions—AI cover letters need manual review to ensure they include role-specific terminology and required qualifications.
Formatting can kill applications: Tables, columns, headers/footers, graphics, and unusual fonts cause ATS parsing errors—always use simple, clean formatting with standard fonts.
Test before every submission: Each job description is unique, so test your cover letter against specific job postings to optimize keywords and maximize your ATS score for that particular role.
Introduction: Why Testing AI Cover Letters Against ATS Is Critical for Job Search Success
You have just used an AI cover letter generator to create what looks like a perfect, personalized cover letter. The content is compelling, the tone is professional, and you are confident it showcases your qualifications perfectly. But here is the harsh reality: if your cover letter cannot pass through Applicant Tracking System (ATS) software, it will never reach human eyes—no matter how well-written it is.
According to Jobscan research from 2024, 98% of Fortune 500 companies now use ATS software to screen applications, and these systems reject approximately 75% of resumes and cover letters before a recruiter ever sees them. This means three out of every four applications—including potentially yours—are eliminated by algorithms, not humans. For job seekers using AI-generated cover letters, the stakes are even higher because AI tools may produce formatting or content that ATS systems struggle to parse correctly.
The problem is that many job seekers assume their cover letters will automatically work with ATS because they look professional. But ATS systems do not see your cover letter the way humans do. They parse text through algorithms, looking for specific keywords, proper formatting structures, and compatible file types. An AI cover letter with beautiful design elements, creative formatting, or missing keywords can score poorly even when the content is excellent.
This comprehensive guide will teach you exactly how to test your AI cover letter against ATS software, which tools to use, what scores to aim for, and how to optimize your cover letter to pass both automated screening and impress human recruiters. Whether you are applying to Fortune 500 companies or startups, understanding ATS testing is essential for modern job search success. If you are new to cover letters entirely, start with our guide on what is a cover letter before diving into ATS optimization.
What Is ATS Software and How Does It Screen Cover Letters?
Applicant Tracking Systems (ATS) are software applications that automate the hiring process by collecting, sorting, scanning, and ranking job applications. Originally designed to manage high volumes of resumes, modern ATS systems now analyze cover letters with the same algorithmic scrutiny. Understanding how these systems work is the first step to ensuring your AI cover letter passes their screening.
How ATS Systems Parse Cover Letters
When you submit an application, the ATS extracts text from your cover letter and processes it through several filters. First, it parses the document to identify key sections and content. Then, it scans for specific keywords that match the job description. Finally, it assigns a compatibility score based on how well your cover letter aligns with the position requirements. This is why understanding what to include in a cover letter is crucial for ATS success.
According to TopResume hiring trends research from 2024, the average corporate job opening receives 250+ applications, and recruiters spend only 6-7 seconds on initial screening. ATS systems help manage this volume by filtering applications before human review. The systems look for:
Keyword matches: Exact terms from the job description, including skills, qualifications, job titles, and industry terminology
Formatting compatibility: Simple structures that algorithms can parse without errors—tables, columns, and graphics often cause failures
Contact information: Properly formatted email, phone number, and name for database entry
File type compatibility: Most ATS systems prefer .docx or .pdf formats, though some struggle with certain PDF types
Readability: Clear section breaks, standard fonts, and logical content flow
Why AI Cover Letters Need Special Attention
AI-generated cover letters present unique challenges for ATS compatibility. While best AI cover letter generators create compelling content, they may not automatically optimize for specific ATS requirements. Common issues include:
Generic keyword usage: AI may use industry-standard terms but miss specific keywords from the job description
Formatting variations: Different AI tools produce different formatting that may not be ATS-compatible
Missing role-specific terminology: AI generalizes based on training data and may omit niche terms the ATS expects
Over-optimization: Some AI tools overuse keywords in ways that trigger spam filters
"The biggest mistake I see with AI-generated cover letters is assuming they are automatically ATS-optimized. The content may be excellent, but if the keywords do not match the job description or the formatting confuses the parser, it is going straight to rejection."
— Sarah Chen, Senior Technical Recruiter at a Fortune 100 technology company
Best ATS Testing Tools for Cover Letters: Free and Paid Options
Several tools can analyze your cover letter for ATS compatibility, providing scores, keyword analysis, and specific improvement recommendations. Here is a comprehensive comparison of the best options available in 2025, whether you need to test an AI-generated letter or one you wrote yourself.
Tool Name | Price | Cover Letter Support | Key Features | Best For |
|---|---|---|---|---|
Jobscan | Free (5 scans/mo) / $49.95/mo | Yes | ATS score, keyword matching, skills gap analysis | Most comprehensive analysis |
Resume Worded | Free basic / $29/mo | Yes | AI-powered feedback, industry benchmarks | Detailed improvement suggestions |
ResumeGo | Free ATS check | Yes | Basic ATS compatibility test | Quick free checks |
TopResume | Free analysis | Limited | Professional review, ATS insights | Professional feedback |
Skillsyncer | Free (3/mo) / $29/mo | Yes | Real-time matching, keyword tracking | Active job seekers |
Enhancv ATS Checker | Free | Yes | Simple pass/fail analysis | Quick verification |
Tool #1: Jobscan - The Industry Standard
Jobscan is widely considered the gold standard for ATS testing and is used by over 1 million job seekers. It directly compares your cover letter against specific job descriptions and provides a match rate percentage, missing keywords, and formatting recommendations.
How to use Jobscan for cover letter testing:
Create a free account at Jobscan.co
Paste your AI-generated cover letter in the left panel
Paste the job description in the right panel
Click Scan to generate your ATS match score
Review missing keywords and add them naturally to your letter
Rescan until you achieve 80%+ match rate
Jobscan analysis includes hard skills matching, soft skills identification, job title alignment, and education verification. For ATS-friendly cover letter creation, this tool is invaluable.
Tool #2: Resume Worded - AI-Powered Analysis
Resume Worded uses artificial intelligence to provide detailed feedback on your cover letter ATS compatibility and overall quality. The tool offers a Score My Resume feature that works equally well for cover letters, providing section-by-section analysis and industry benchmarks.
Key features include:
Instant ATS score: 0-100 rating based on keyword optimization and formatting
Industry benchmarks: Comparison against successful applications in your field
Targeted improvements: Specific suggestions for each section of your cover letter
Keyword optimization: Identifies missing and underused terms from job descriptions
Tool #3: ResumeGo - Free Quick Check
ResumeGo offers a completely free ATS compatibility checker that provides basic but useful analysis. While not as comprehensive as paid tools, it is excellent for quick verification before submission. The tool checks for formatting issues, parsability, and basic keyword presence. For those learning how a cover letter should be formatted, ResumeGo provides helpful initial feedback.
Step-by-Step Guide: How to Test Your AI Cover Letter Against ATS
Testing your AI cover letter is a systematic process that ensures both ATS compatibility and human appeal. Follow these steps to maximize your chances of passing automated screening while creating content that impresses recruiters.
Step 1: Generate Your AI Cover Letter
Start by creating your cover letter using a reliable AI cover letter generator. The best approach is to provide the AI with:
Your resume: Complete work history, skills, and qualifications
The job description: Full posting including requirements and preferred qualifications
Company information: Mission, values, and culture details for personalization
Specific achievements: Quantifiable results to highlight
Quality AI tools like Cover Letter Copilot analyze both your background and the job requirements to create personalized content. However, this initial output still needs ATS testing and optimization. Learn more about how AI cover letter generators work to understand the technology behind these tools.
Step 2: Extract Keywords from the Job Description
Before running your cover letter through ATS testing tools, manually identify the most important keywords in the job description. Look for:
Required skills: Technical abilities, software proficiency, certifications
Job title variations: The exact title and common alternatives (e.g., Software Engineer, Software Developer)
Industry terminology: Jargon, acronyms, and field-specific language
Soft skills: Communication, leadership, collaboration, problem-solving
Action verbs: Managed, developed, implemented, achieved, led
Qualifications: Degree requirements, years of experience, certifications
Create a list of 15-20 priority keywords that must appear in your cover letter. This manual analysis helps you verify that ATS testing tools are identifying the right terms. Our keyword finder tool can automate this extraction process.
Step 3: Run Initial ATS Scan
Upload your AI cover letter to your chosen ATS testing tool (we recommend starting with Jobscan). Paste the complete job description for accurate comparison. The tool will analyze:
Overall match percentage (aim for 80%+)
Missing hard skills keywords
Missing soft skills
Formatting compatibility issues
File type recommendations
Document your initial score and all identified issues. This baseline helps you track improvement as you optimize.
Step 4: Optimize for Missing Keywords
Based on your ATS scan results, strategically add missing keywords to your cover letter. The key is natural integration—do not stuff keywords awkwardly. Instead:
Replace generic terms: Swap worked on projects for specific technologies or methodologies mentioned in the job description
Expand accomplishments: Add context that includes required skills (e.g., managed cross-functional team becomes managed cross-functional team using Agile methodology)
Mirror job description language: Use exact phrases when describing your experience
Include technical terms: Ensure all required tools, software, and certifications appear
Learn more about optimizing AI-generated content in our guide on editing AI cover letters to remove generic phrases. This step is crucial for passing ATS while maintaining natural, readable content.
Step 5: Fix Formatting Issues
ATS formatting problems are silent application killers. Common issues include:
Formatting Issue | Why It Fails | How to Fix |
|---|---|---|
Tables or columns | ATS reads content out of order | Use standard paragraph format |
Headers/footers | Content may be skipped entirely | Keep all text in main body |
Graphics or images | Cannot be parsed by ATS | Remove all visual elements |
Unusual fonts | May not render correctly | Use Arial, Calibri, or Times New Roman |
Text boxes | Content often missed | Use regular paragraphs |
Special characters | May cause parsing errors | Use standard punctuation only |
Multiple columns | Text extracted incorrectly | Single-column layout only |
For detailed formatting guidance, review our comprehensive guide on list 5 formatting guidelines you should follow when developing a cover letter.
Step 6: Rescan and Refine
After making optimizations, run your cover letter through the ATS scanner again. Compare your new score to the baseline. Continue refining until you achieve:
80%+ match rate: This is the minimum threshold for most ATS systems
All critical keywords included: Hard skills and required qualifications should all be present
No formatting warnings: The tool should report no parsing issues
Natural readability: The letter should still sound human and engaging
Step 7: Human Review
ATS optimization is essential, but remember that humans make final hiring decisions. After achieving a good ATS score, read your cover letter aloud to ensure it:
Flows naturally and does not sound keyword-stuffed
Tells a compelling story about your qualifications
Shows genuine enthusiasm for the role
Maintains professional tone throughout
Includes a strong call-to-action
Balance is key—your cover letter must satisfy both algorithms and humans. For tips on creating engaging content, see our guide on how to make a cover letter stand out.
Understanding ATS Scores: What the Numbers Mean and What to Target
ATS testing tools provide numerical scores that indicate how well your cover letter matches job requirements. Understanding these scores helps you prioritize improvements and know when your cover letter is ready for submission.
ATS Score Breakdown
Score Range | Rating | What It Means | Action Required |
|---|---|---|---|
90-100% | Excellent | Highly likely to pass ATS screening | Submit with confidence |
80-89% | Good | Strong match, minor optimizations possible | Review and refine if time permits |
70-79% | Moderate | May pass but not optimal | Add 3-5 missing keywords |
60-69% | Needs Work | Risk of ATS rejection | Significant keyword optimization needed |
Below 60% | Poor | Likely to be filtered out | Major revision required |
Target score: 80%+ for most applications. Some highly competitive positions may require 90%+ for best results. Remember that these scores are estimates—actual ATS behavior varies by system and configuration.
What Affects Your Score
Several factors contribute to your ATS compatibility score:
Keyword density (40-50% of score): How many job description keywords appear in your cover letter
Keyword placement (15-20%): Where keywords appear—opening paragraph matches carry more weight
Skills match (20-25%): Alignment between your listed skills and required qualifications
Formatting compliance (10-15%): Whether your document structure is ATS-parseable
File type compatibility (5%): Document format acceptability
Why AI Cover Letters Get Rejected by ATS: Common Mistakes and Fixes
Even well-crafted AI cover letters can fail ATS screening due to preventable issues. Understanding common rejection reasons helps you avoid these pitfalls and ensures your application reaches human reviewers. For those concerned about AI detection, our guide on whether AI cover letters are detectable by recruiters provides additional insights.
Mistake #1: Missing Critical Keywords
The most common reason for ATS rejection is failing to include keywords that exactly match the job description. AI cover letter generators create content based on general knowledge, not specific job postings.
Example: Job description requires Python programming but your AI cover letter says coding skills or programming experience. The ATS may not recognize these as equivalent.
Fix: Always compare your AI output against the job description. Use our guide on using job descriptions for AI cover letter prompts to ensure keyword alignment.
Mistake #2: Wrong File Format
Different ATS systems handle different file formats with varying success. Submitting the wrong format can result in parsing failures or complete rejection.
.docx: Most universally compatible—recommended for most applications
.pdf: Generally works but some older ATS struggle with PDFs
.doc: Older format, usually accepted but not preferred
.txt: Always works but loses all formatting
Other formats: Avoid .pages, .odt, .rtf unless specifically requested
Mistake #3: Over-Formatting
Creative formatting that looks impressive to humans often confuses ATS algorithms. AI tools sometimes generate cover letters with formatting elements that cause parsing errors.
Problematic formatting includes:
Logos or images in the header
Decorative borders or lines
Multiple font styles within paragraphs
Colored backgrounds or text
Embedded charts or graphics
Non-standard bullet point characters
Mistake #4: Generic Content Without Personalization
Some ATS systems assess content quality, not just keyword presence. A cover letter that reads like a template with little job-specific content may score poorly. Learning to make your AI cover letter sound more human and unique helps avoid this issue.
Mistake #5: Incorrect Length
Cover letters that are too short may lack sufficient keywords for good ATS matching. Those that are too long may exceed character limits or dilute keyword density. The ideal length is 250-400 words. Check our guide on how long should a cover letter be for detailed guidance.
"We have analyzed over 500,000 applications and found that cover letters between 250-350 words with 3-4 paragraphs perform best in ATS screening. Anything under 150 words typically lacks sufficient keyword density, while letters over 500 words often trigger length filters."
— Dr. Amanda Torres, HR Analytics Director at Glassdoor
How to Optimize AI-Generated Cover Letters for Maximum ATS Compatibility
Once you understand ATS testing results, optimization becomes straightforward. These strategies help transform any AI cover letter into an ATS-friendly document that still reads naturally.
Strategy 1: Use the Job Title Exactly
Include the exact job title from the posting in your cover letter, ideally in the opening paragraph. If you are applying for Senior Marketing Manager, do not just say marketing role or management position.
Example: I am writing to express my strong interest in the Senior Marketing Manager position at Company Name, where I can leverage my seven years of digital marketing expertise...
Strategy 2: Mirror Required Qualifications
For each required qualification in the job description, ensure your cover letter addresses it with the same terminology. Create a checklist and verify each requirement is mentioned.
Job requirement: 5+ years experience in data analysis
Cover letter inclusion: My seven years of data analysis experience at Company Name provided...
Strategy 3: Include Technical Terms and Acronyms
ATS systems often search for both spelled-out terms and acronyms. Include both versions the first time you mention them.
Example: I hold a Project Management Professional (PMP) certification and have extensive experience with Customer Relationship Management (CRM) systems including Salesforce and HubSpot.
Strategy 4: Front-Load Keywords
Place your most important keywords in the first paragraph. Many ATS systems weight content at the beginning of documents more heavily. Your opening should include the job title, 2-3 key required skills, and the company name. For help crafting effective openings, see our guide on best opening lines for AI cover letters.
Strategy 5: Use Standard Section Headers
If your cover letter includes section headers (not always necessary), use standard terminology that ATS systems recognize. Avoid creative alternatives.
Use: Experience, Skills, Summary
Avoid: My Journey, What I Bring, My Superpowers
Industry-Specific ATS Testing Considerations
Different industries use ATS systems with varying configurations and priorities. Understanding these differences helps you optimize your AI cover letter for specific sectors.
Technology and IT
Tech companies often use sophisticated ATS systems that prioritize technical skills matching. They typically search for specific programming languages, frameworks, tools, and certifications. When applying for tech roles, see our software engineer cover letter examples for industry-specific guidance.
Priority keywords: Programming languages, frameworks, methodologies (Agile, Scrum)
Common tools: Greenhouse, Lever, Workday
Testing tip: Include exact versions when relevant (e.g., Python 3.x, React 18)
Healthcare
Healthcare ATS systems prioritize certifications, licenses, and compliance-related keywords. They often have strict filtering for required credentials. Review our nursing cover letter examples for healthcare-specific strategies.
Priority keywords: Certifications (RN, LPN, CNA), HIPAA compliance, EHR systems
Common tools: Workday, Oracle Taleo, iCIMS
Testing tip: Always include full credential names alongside acronyms
Finance and Banking
Financial sector ATS systems focus on regulatory knowledge, quantitative skills, and specific certifications. They often filter for compliance-related experience.
Priority keywords: CPA, CFA, regulatory frameworks (SOX, Basel III), financial modeling
Common tools: Workday, Taleo, SuccessFactors
Testing tip: Include specific financial software and quantitative achievements
Marketing and Creative
Marketing ATS systems balance creative skills with measurable results. They often search for specific tools and platforms alongside marketing terminology. Check our digital marketing cover letter examples for optimization strategies.
Priority keywords: Marketing platforms (Google Analytics, HubSpot), campaign metrics, ROI
Common tools: Greenhouse, Lever, JazzHR
Testing tip: Include quantifiable results with specific percentages and figures
Free vs Paid ATS Testing Tools: Which Should You Use?
Both free and paid ATS testing tools can help optimize your cover letter, but they offer different levels of analysis and functionality. Here is how to choose the right option for your situation.
Free ATS Testing Options
Best for: Job seekers on a budget, occasional applications, basic compatibility checks
Advantages:
No financial commitment required
Sufficient for basic keyword and formatting checks
Quick access without subscription setup
Good for learning how ATS systems work
Limitations:
Limited number of scans per month (typically 3-5)
Basic analysis without detailed recommendations
No industry benchmarking
Less accurate scoring algorithms
Paid ATS Testing Tools
Best for: Active job seekers, career changers, competitive positions, high-volume applications
Advantages:
Unlimited scans for iterative optimization
Detailed, actionable recommendations
Industry-specific insights and benchmarks
Historical tracking to monitor improvement
Often include resume testing as well
Recommendation: If you are actively job searching and applying to 10+ positions, paid tools typically pay for themselves through improved interview rates. For occasional applications, free tools provide sufficient basic analysis.
ATS Testing for Remote Job Applications
Remote job applications often receive higher volumes of candidates, making ATS screening even more critical. Companies hiring remotely may receive 5-10x more applications than in-person roles, leading to stricter ATS filtering. For complete guidance on remote applications, see our comprehensive guide on AI cover letters for remote roles.
Remote-Specific Keywords to Include
Remote work experience - Shows you have successfully worked remotely before
Self-motivated - Indicates ability to work independently
Virtual collaboration - Demonstrates remote teamwork skills
Time zone flexibility - Important for distributed teams
Collaboration tools: Slack, Zoom, Microsoft Teams, Asana, Trello
Home office setup - Shows preparedness for remote work
Remote roles from our remote job cover letter examples demonstrate effective keyword integration for distributed positions.
Best Practices for ATS Testing Your AI Cover Letters
Following these best practices ensures consistent, effective ATS testing for every application:
Before Testing
Save your original: Keep an unmodified copy of your AI-generated cover letter for reference
Copy the full job description: Include the entire posting, not just the summary
Identify must-have keywords: Highlight required qualifications and skills before testing
Choose the right tool: Select a testing tool appropriate for your industry
During Testing
Test multiple times: Run 3-4 scans after each round of optimization
Track your scores: Document improvements to understand what changes have the most impact
Focus on high-impact changes first: Address missing critical keywords before minor optimizations
Maintain readability: Do not sacrifice human appeal for ATS score
After Testing
Read your letter aloud: Ensure it still sounds natural after optimization
Have someone else review: Fresh eyes catch awkward keyword insertions
Save your optimized version: Keep a library of tested cover letters for similar roles
Test again for each new application: Different job descriptions require different optimizations
Advanced ATS Optimization Strategies for AI Cover Letters
Beyond basic testing and optimization, these advanced strategies can further improve your ATS performance and help you stand out even in highly competitive applicant pools.
Strategy 1: Create Role-Specific Templates
Instead of optimizing each cover letter from scratch, create ATS-tested templates for common role types you apply to. Keep a base version with proven formatting and common industry keywords, then customize for each specific position.
Strategy 2: Use Multiple Testing Tools
Different ATS testing tools use different algorithms. Running your cover letter through 2-3 tools provides a more complete picture of compatibility. If one tool shows 75% and another shows 85%, you can identify which keywords each emphasizes differently.
Strategy 3: Analyze Successful Applications
When you receive interview invitations, note which version of your cover letter worked. Save these successful letters and analyze what made them effective—specific keyword placements, structure, or content approaches that worked well.
Strategy 4: Mirror Company Language
Beyond job descriptions, analyze company websites, press releases, and social media for common terminology. Companies often use consistent language that may appear in ATS keyword lists. Learning best prompts for AI cover letter generators helps you guide AI output toward company-specific language.
Frequently Asked Questions About Testing AI Cover Letters Against ATS
What is the best free ATS checker for cover letters?
ResumeGo and Jobscan free tier are the best free options for cover letter ATS testing. ResumeGo offers unlimited basic checks, while Jobscan provides 5 free scans monthly with more detailed analysis. For occasional testing, these free options provide sufficient insights to identify major compatibility issues. However, active job seekers applying to many positions may benefit from paid tools with unlimited scans and more detailed recommendations.
Do AI cover letters automatically pass ATS systems?
No, AI cover letters do not automatically pass ATS systems. While AI generators create well-written content, they may not include specific keywords from individual job descriptions or may use formatting that causes parsing issues. Every AI-generated cover letter should be tested against the specific job description before submission to ensure keyword optimization and formatting compatibility. Tools like Jobscan help identify gaps between your AI output and job requirements.
What ATS score should I aim for?
Aim for an ATS match score of 80% or higher for best results. Scores above 85% indicate excellent optimization and high likelihood of passing automated screening. Scores between 70-79% may pass but are not optimal. Below 70%, your cover letter risks automatic rejection. For highly competitive positions at large companies, targeting 90%+ provides the best chance of reaching human reviewers. Remember that these scores are estimates—actual ATS behavior varies by system.
How often should I test my cover letter?
Test your cover letter for every unique job application. Since ATS systems scan for keywords specific to each job description, a cover letter that scores 90% for one position might score 60% for another. Create a testing routine: generate your AI cover letter, run an initial scan, optimize based on results, rescan to verify improvements, then submit. This process typically takes 10-15 minutes and significantly improves your chances.
Can ATS detect AI-generated cover letters?
Standard ATS systems do not specifically detect or penalize AI-generated content. ATS software focuses on keyword matching, formatting compatibility, and qualification alignment rather than content origin. However, poorly optimized AI cover letters may fail for the same reasons any cover letter fails: missing keywords, formatting issues, or lack of personalization. The key is optimizing your AI output for each specific application rather than worrying about AI detection.
What file format works best with ATS?
Microsoft Word (.docx) format is the most universally compatible with ATS systems. PDF files generally work but may cause issues with older ATS software or PDFs created from images. If you are unsure, submit in .docx format unless the application specifically requests PDF. Avoid file types like .pages, .odt, or .rtf, as many ATS systems cannot parse them correctly. When in doubt, check the job application for specified format requirements.
Do small companies use ATS?
Yes, many small companies use ATS systems, though adoption varies. According to Capterra research, 75% of companies with 50+ employees use some form of ATS, and even smaller companies increasingly adopt these tools to manage applications efficiently. Affordable ATS options like Breezy HR, JazzHR, and Workable make these systems accessible to businesses of all sizes. Treat every application as potentially ATS-screened unless you know the company uses purely manual review.
How do I fix a cover letter that scores below 60%?
A score below 60% typically indicates significant keyword gaps or formatting issues. First, compare your cover letter line-by-line with the job description to identify missing required keywords. Add these terms naturally throughout your letter, focusing on the opening paragraph. Next, simplify formatting—remove any tables, graphics, unusual fonts, or complex structures. Convert to a simple, single-column layout with standard paragraph formatting. Rescan after each change to track improvement. If the score remains low, consider regenerating your AI cover letter with better prompts. See our guide on creating a cover letter for fundamentals.
Should I use the same cover letter for similar jobs?
No, you should not use identical cover letters even for similar positions. While you can start with a base template optimized for your target role type, each cover letter should be customized to match the specific job description keywords and requirements. Companies in the same industry may use different terminology, prioritize different skills, or have unique qualification requirements. Test each customized version against its specific job description to ensure optimal ATS compatibility.
What happens if my cover letter fails ATS screening?
If your cover letter fails ATS screening, it is automatically filtered out and never reaches human reviewers. Your application essentially disappears from the candidate pool without any notification. Most companies do not inform candidates about ATS rejection—you simply never hear back. This is why testing is crucial: an excellent cover letter that fails ATS screening has zero chance of success, while an average letter that passes ATS at least reaches human consideration.
Can I over-optimize my cover letter?
Yes, over-optimization is a real risk. Signs include awkwardly stuffed keywords, repetitive terminology, unnatural phrasing, and content that prioritizes keywords over readability. Some ATS systems also have spam detection that may flag heavily optimized content. Aim for a balance: include important keywords naturally but ensure your cover letter still reads smoothly and maintains a professional, human voice. If you cannot read your cover letter aloud without it sounding strange, you have likely over-optimized.
How do ATS systems handle cover letters vs resumes?
ATS systems parse cover letters and resumes similarly but may weight them differently. Resumes typically receive more detailed parsing for skills, work history, and education. Cover letters are often scanned for cultural fit indicators, motivation expressions, and keyword reinforcement. Some ATS configurations analyze cover letters less rigorously than resumes, while others apply equal scrutiny. Optimizing both documents ensures comprehensive ATS compatibility.
Conclusion: Master ATS Testing for Job Search Success
Testing your AI cover letter against ATS software is not optional in today's job market—it is essential for getting your application in front of human decision-makers. With 98% of Fortune 500 companies using ATS systems and 75% of applications facing automatic rejection, the difference between a tested and untested cover letter often determines whether you get an interview or never hear back.
The process is straightforward: generate your cover letter using a quality AI cover letter generator, test it against the specific job description using tools like Jobscan or Resume Worded, optimize for missing keywords and formatting issues, and verify your final version achieves 80%+ compatibility before submitting. This 10-15 minute investment dramatically increases your chances of success.
Remember these key principles: use exact keywords from job descriptions, maintain simple formatting that ATS can parse, include both spelled-out terms and acronyms for technical qualifications, and balance ATS optimization with human readability. Your cover letter must pass algorithmic screening first, but ultimately it needs to impress human recruiters who make hiring decisions.
Start testing your AI cover letters today. Browse our cover letter examples for inspiration, explore our cover letter templates for ATS-friendly structures, and create optimized letters with our AI cover letter generator. With proper testing and optimization, your cover letters will consistently pass ATS screening and give you the best chance of landing interviews for your target roles.