Gen Z job seekers are facing a tough challenge as artificial intelligence (AI) takes over many entry-level jobs. New research shows that AI is replacing young workers in tasks like research, admin, and briefing, making it harder for the newest generation to find work.
A poll by the British Standards Institution (BSI), which surveyed over 850 business leaders worldwide, found that 41% of companies are cutting staff thanks to AI. Nearly a third of these businesses are now looking at AI solutions before even thinking about hiring a person. Another 40% expect to do this within the next five years.
The impact is clear: 39% of companies have already reduced entry-level roles due to AI’s efficiencies, and 43% plan to do so over the coming year. Susan Taylor Martin, CEO of BSI, said that while AI offers huge potential for businesses, it’s important to remember that people drive progress. She stressed the need for long-term thinking and investment in the workforce to keep jobs sustainable alongside growing AI tools.
In the U.S., a separate survey by Resume Templates of 1,000 hiring managers revealed that 29% have already swapped out entry-level employees for AI, and 31% are thinking about it. Most hiring managers (68%) believe that demand for entry-level workers will keep shrinking over the next five years as AI takes over more tasks.
Employers also say they find AI more reliable than Gen Z workers. About 41% think AI is faster, makes fewer mistakes, and is more consistent. But it’s not just the technology’s efficiency that influences this preference. Many hiring managers have concerns about Gen Z’s work habits. The biggest worry, cited by 81% of them reluctant to hire young workers, is poor work ethic.
Other issues include a sense of entitlement (74%), lack of professionalism (68%), unrealistic expectations (62%), weak communication skills (60%), poor cultural fit (53%), and lack of preparedness (49%). Julia Toothacre, chief career strategist at Resume Templates, isn’t surprised. She notes that each generation faces similar critiques when entering the workforce. It often comes down to experience and changing workplace norms.
Toothacre also warns against fully replacing entry-level positions with AI. She says companies risk shutting down their future talent pipeline. Without early job experience, there won’t be enough skilled workers ready to take on higher roles in the future.
As AI continues to grow in workplaces around the world, Gen Z will need to find new ways to prove their value. Meanwhile, businesses face the challenge of balancing technology gains with investing in people who will shape tomorrow’s workforce.