Gen Z Job Prospects Dim as AI Takes Hiring Priority
Source: theguardian.com
For young people entering the workforce, the rise of artificial intelligence presents a significant hurdle. Companies are increasingly turning to automation, potentially limiting entry-level job opportunities.
AI Adoption Over New Hires
A British Standards Institution (BSI) study reveals a concerning trend. A quarter of global business leaders believe AI can handle most entry-level tasks.
This suggests businesses are focusing on AI to fill skill gaps and reduce costs. This comes instead of investing in training and hiring junior staff.
Cutting Costs with Automation
The BSI surveyed over 850 leaders across seven countries including the US, UK, China and Japan. The survey found that 41% are using AI to reduce employee numbers.
Almost a third (31%) prioritize AI solutions over new hires. Two-fifths expect this trend to continue within five years.
Gen Z Faces Challenges
These findings pose challenges for Gen Z during a cooling labor market. A quarter of bosses think AI could perform all or most entry-level tasks.
BSI's chief executive, Susan Taylor Martin, emphasized the need for balance. She said that while AI offers opportunities, investment in people remains crucial.
Job Role Reductions
About 39% of leaders have already cut entry-level roles through AI efficiencies. These tools now handle research, admin, and briefings.
While over half of respondents felt fortunate to start their careers pre-AI, 53% believe AI's benefits will outweigh workforce disruption. That said, others are not so optimistic.
Rapid AI Integration
UK businesses are rapidly adopting AI. 76% expect tangible benefits within a year. These benefits are expected from increased productivity, lower costs, and filled skill gaps.
BSI analysis shows “automation” mentioned far more than “upskilling” in company reports. This highlights where companies are directing their investment.
Broader Concerns
A separate survey showed that half of UK adults fear AI's impact on their jobs. They worry that AI could replace or alter their employment.
The UK job market has been cooling, with a jobless rate at a four-year high of 4.7%. However, most economists do not link this directly to AI investment.
Stock Market Bubble?
Concerns are rising about inflated valuations of AI companies. This could create a stock market bubble.
The increasing reliance on AI presents both opportunities and challenges. Balancing technological advancement with workforce development is essential for sustained growth.