AI Interview Tool Cluely Raises US$5.3M and Sparks Debate on Online Hiring and Academic Integrity
Image Credit: Gabriel Benois | Splash
Chungin “Roy” Lee, a 21-year-old former Columbia University student, has ignited debate with Cluely, an AI-based tool developed through his startup. Designed to assist users during online job interviews, coding tests, and exams, Cluely recently raised US$5.3 million in seed funding but faces significant ethical scrutiny over its impact on fairness in hiring and academia.
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Cluely’s Capabilities and Market Impact
Cluely, co-founded by Lee and Neel Shanmugam, functions as a concealed browser overlay that delivers real-time answers and suggestions during virtual interviews, coding challenges, exams, and even sales calls. The overlay is designed to be undetectable by standard screen-sharing software, raising concerns about potential misuse. The tool targets job candidates, students, and professionals, supporting platforms commonly used for technical interviews, such as LeetCode. Cluely’s founders compare their product to calculators or spell-checkers, arguing it is a modern aid for outdated evaluation methods. As of April 2025, Cluely reported over US$3 million in annual recurring revenue (ARR), reflecting strong adoption and investor interest.
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Origins and Disciplinary Actions
Cluely originated as "Interview Coder", developed by Lee to aid himself in technical interviews at companies like Amazon, Meta, and TikTok. A since-removed YouTube video showed Lee using the tool during an Amazon internship interview, resulting in rescinded job offers once the tool’s use became public. Both Lee and Shanmugam, who served as Cluely’s COO, faced disciplinary proceedings at Columbia University and ultimately left the institution. Columbia’s suspension of Lee was tied to breaches of academic policy, including sharing a confidential hearing recording and a photo featuring university staff on social media, rather than direct use of the tool in exams.
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Funding and Industry Response
Cluely’s US$5.3 million seed round, led by Abstract Ventures and Susa Ventures, highlights investor optimism for AI-driven workplace tools. Early adopters include tech workers, sales professionals, and students seeking an advantage in online assessments. However, the tool’s discreet design has contributed to rising industry concerns about undetectable cheating. Google CEO Sundar Pichai has publicly suggested a return to in-person interviews as a countermeasure, and technical interview firm Karat reported an increase in cheating incidents from 2% to 10% over two years.
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Ethical Debate and Social Impact
Critics warn that the spread of tools like Cluely may prompt some employers to move back to in-person interviews or put greater emphasis on resumes, which could unintentionally reduce access to remote hiring processes for candidates who depend on them. This reaction could limit opportunities for those with geographic, mobility, or socioeconomic barriers, raising concerns about broader impacts on accessibility and fairness.
Lee argues that widespread cheating in online assessments demonstrates the flaws in rigid evaluation formats like LeetCode, advocating for reform rather than technological bans.
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Countermeasures and the Future of Assessment
Employers and educators are deploying advanced detection tools, such as Validia’s “Truely” and Proctaroo’s proctoring software, to identify AI assistance like Cluely by monitoring background applications and user behaviour, including response delays or eye movements.
On-screen recording, used by platforms like Honorlock, struggles to detect Cluely’s hidden window but can flag suspicious patterns when paired with AI-driven analysis. Regulatory frameworks for AI in hiring and education remain limited, complicating enforcement. Lee’s speculative claim that AI could render programming jobs obsolete within two years underscores automation trends, but Cluely’s pivot to hardware like smart glasses may further challenge detection efforts. Institutions must develop targeted, AI-enhanced monitoring to ensure integrity while adapting to technological advances.
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Source: Cluely, Proctaroo, AllAboutAI, TechCrunch, Perplexity
