Gen Z Job Prospects Dwindle as AI Takes Over Entry-Level Tasks

AI Impact on Gen Z Employment

Young professionals entering the workforce are facing a significant challenge as companies increasingly turn to AI instead of hiring new staff for entry-level roles. A recent study by the British Standards Institution (BSI) reveals that businesses are prioritizing automation to fill skills gaps and reduce employee numbers, rather than investing in training junior staff.

The study, which surveyed over 850 business leaders across seven countries, found that 41% of companies are using AI to cut staff. This trend is particularly concerning for Gen Z, born between 1997 and 2012, as they navigate a job market that is rapidly cooling due to AI adoption.

The Shift Toward Automation

The rise of automation is evident, with almost a third (31%) of surveyed leaders considering AI solutions before hiring new employees. Two-fifths of these leaders expect this trend to continue within the next five years. This shift highlights the growing reliance on AI to perform tasks traditionally handled by entry-level workers.

"AI is becoming a critical tool for businesses to streamline operations and address skills shortages," said Susan Taylor Martin, CEO of BSI. "However, it is essential to balance AI adoption with workforce development to ensure sustainable employment."

Entry-Level Roles at Risk

The impact on entry-level roles is already significant, with 39% of leaders reporting reductions or eliminations of these positions due to AI-driven efficiencies. Administrative and research tasks, once common for entry-level employees, are now increasingly automated.

While over half of the respondents feel fortunate to have started their careers before the AI revolution, 53% believe that the benefits of AI will ultimately outweigh the disruption to the workforce.

Business Expectations and Concerns

Businesses, especially in the UK, are rapidly adopting AI, with 76% expecting tangible benefits within a year. Companies are investing in AI to boost productivity, cut costs, and address skills shortages. However, BSI's analysis shows that mentions of "automation" in company reports far outweigh those of "upskilling."

Half of UK adults are concerned about AI's impact on their jobs, according to a Trades Union Congress poll. This concern comes as Britain's job market cools, with wage growth slowing and the jobless rate at a four-year high of 4.7%. Economists, however, do not attribute this directly to AI investment.

Despite these concerns, the adoption of AI continues to accelerate, raising questions about the future of work and the need for balanced strategies that integrate both technology and human talent.