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As Gen Z's newest college graduates enter the workforce, they are facing some new competition for jobs: artificial intelligence.
Given ChatGPT and other AI tools' ability to complete tasks such as research, data entry and email writing, some entry-level roles that would normally go to new graduates are at risk.
That's one takeaway from a recent Intelligent.com survey of 804 hiring managers, which found that 8 in 10 hiring managers said their company will lay off recent graduates due to AI use.
Huy Nguyen, Intelligent’s chief education and career development adviser, said that while entry-level positions provide crucial experience, they are also the ones that are easiest to replace.
That dynamic is likely to pose challenges for the latest Gen Z graduates, who are entering a softer job market than their recent predecessors.
“While AI can’t fully replace the critical thinking and innovative problem-solving that humans provide, it can certainly take over many of the routine and repetitive tasks that newly hired graduates are assigned,” Nguyen said. “This makes recent graduates among the most vulnerable for having their roles consolidated or even eliminated through wide-spread AI adoption.”
Within the group of organizations planning to lay off recent graduates, the bulk of respondents said AI will affect less than 10% of entry-level roles.
The survey also shed light on how employers are valuing AI experience.
About 95% of respondents said they are more likely to hire a graduate with a background in AI.
As we've noted, the ability to utilize AI is emerging as a differentiator for candidates in the job market.
A recent survey by ResumeBuilder.com found 83% of business leaders at companies that currently use AI or plan to use it in 2024 say employees with AI skills will have more job security at their company than those who don't.
Julia Toothacre, ResumeBuilder’s resume and career strategist, said the results aren’t surprising and should serve as a wake-up call for anyone who is rejecting AI within their industry or function.
“Employees need to find ways to grow their skills and stay relevant in their field if they don’t want their job to be given to AI," Toothacre said.
Other key findings from the Intelligent.com report include:
- 69% believe that AI can do the work of a recent college grad
- About 70% say AI can do the jobs of interns
- More than half of respondents trust AI over interns or recent graduates
The survey comes as more employers embrace the potential of AI while also trying to avoid pitfalls.
As we've noted, many companies are exploring how to use AI to reduce labor costs, and AI is rising among the top factors for employees that are laying off workers.
Still, experts say it's important for companies to tread carefully with AI — particularly when trying to utilize AI technology for anything connected to human resources.
On the plus side, the hiring market for new college graduates remains strong overall, even if it remains far removed from the frantic pace and soaring salary offers of 2022.
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