From Gen AI to Gen Z: What’s really happening to early careers?

Starting a career has never been easy but for today’s graduates, it’s becoming even more complex. With economic uncertainty, shifting hiring preferences and the rise of Generative AI, early career paths are being reshaped in real time.

Recent headlines paint a stark picture. In the UK, entry-level job openings have dropped by nearly a third since the launch of ChatGPT. Globally, AI leaders warn that up to 50% of office jobs could be automated within five years.

But is AI the sole troublemaker, or is something deeper going on?

Whilst AI is certainly making waves, its direct impact on graduate jobs is more nuanced than the headlines suggest. James Milligan, Global Head of Technology, Engineering & Contracting, Hays said: “The impact of AI is reshaping jobs across all seniority levels, including entry-level job roles. However, there’s also the broader hiring landscape to consider, which is being shaped by economic and geopolitical factors. What we’re seeing isn’t a collapse in demand, but a transformation in how and where graduates are being hired.”

This sentiment is shared by Amanda Whicher, Hays UK&I Technology Director who added: “The decline in grad jobs isn’t new. It’s a trend that’s been happening for over a decade, and is currently driven more by economic pressures and a shift in hiring preferences, rather than by AI alone.”

However, the impact of AI should not be ignored. In the Netherlands, financial newspaper FD argue that AI is increasingly being used to automate junior-level tasks in finance, law and IT. In the USA, unemployment figures for recent graduates have reached an “unusually high” 5.8%.

For Nadine Wirkuttis, Head of Channel Data & AI, Hays Germany, technology is playing a role in the decline of graduate opportunities. “In Germany, it appears that early career opportunities have declined, especially across fields where jobs can be easily automated, for example in tech or finance.”

However, purely automating roles comes with its own risks. Nadine continued: “Those tasks often come with responsibilities that aren’t accounted for in job descriptions. Therefore, innovation and cross functional problem-solving might be reduced or hindered if they disappear entirely.”

This highlights a critical point: removing early-career roles may solve short-term efficiency goals but risks long-term capability loss. Without junior employees, organisations risk creating a knowledge vacuum and weakening their talent pipeline. At the same time, while AI has a lot to offer, organisations can’t guarantee that it will be able to fulfil these responsibilities effectively and sustainably.

So, what should organisations be considering?

Future focus: Avoid overreacting to hype…but don’t ignore the shift

One solution? Invest in early talent by offering structured AI training and development opportunities. Not only does this help retain ambitious Gen Z professionals, but it also ensures that organisations are building a workforce equipped to work alongside AI, not be replaced by it.

As it stands, AI integration in businesses hasn’t happened on the large-scale levels we may have thought it would. Because of this, it’s imperative that leaders avoid knee-jerk reactions like cutting entry-level roles, for a technology they haven’t yet got to grips with. James Walsh, Business Director for Cyber, Data and Cloud, Hays UK&I commented: “For now, organisations are assessing whether AI will actually deliver, and not many are confident it can do more than enhance, at this moment in time.”

Amanda’s message was clear: “The hype around AI is much bigger than the reality of what we're actually seeing across organisations. Yes, there's more instances of things like ChatGPT and Copilot being used, but AI hasn't reached the levels that we anticipated 12 months ago.”

Whilst organisations consider the potential of AI, it’s imperative they do not abandon recent graduates and those in the early stages of their career. After all, Gen Z are not only the future leaders in the world of work, they’re also the ones using AI.

As James Walsh said: “The early adopters of AI are technologists, but also this generation that'll be coming through. They are by their very nature digital natives. They're using AI in schools and demonstrating how they can use AI tools.”

This was reiterated in this blog by Hays: “Gen Z are the first generation to have no memory of a time pre-internet. This group is often quick to pick up new platforms and technologies. For companies looking to innovate and stay ahead of the curve, the tech skills of early talent can be invaluable.”

What’s more, Hays data from our Salary Guides across the world has found that 85% of 20–30-year-olds said they were willing to upskill in AI. There’s an opportunity for businesses to tap into Gen Z’s existing talent and willingness to learn, and bring them onboard to help with the adoption of AI.

For Ben Carter, Director of Emerging Talent Solutions, Hays UK&I, companies need to think more strategically. “If AI is impacting early careers, I would say those companies are lacking medium-term thinking. They will choke an ecosystem when they need mid-level roles if they automate the early career roles.

“My advice to business leaders is to stay focused on the medium-term and understand the huge opportunity that grads bring. They’ve got three years’ practice using AI and can progress quickly.”

Julia Cames, Chief Marketing Officer, Hays added that AI training needs to be across the whole business. “If we want to unlock the full potential of this transformation, we need to embed AI learning across disciplines and invest in upskilling at every career stage,” Julia said.

“I’m pushing my own teams (and myself!) to play with it, to use it to get sharper, stronger, or to be clever about what AI can take off their plate so they can focus on the high-value work only they can do.”

Whilst AI-related skills will certainly need to be developed by all workers, perhaps the most important are the softs skills, or as we prefer to call them…human skills.

Career corner: Standing out in the age of AI

Whilst AI can automate and do routine tasks quickly, it can’t yet replicate many of the competencies that make us human.

In a recent edition of The Talent Blueprint, Shane Little, Managing Director of Hays Enterprise Solutions APAC argued that we should stop dubbing these skills soft, as they “are anything but soft – they’re essential.”

James Walsh went a step further. “I think soft skills have become extremely hardened skills that people need to have. They're going to be the absolute core skills of the future - the absolute diamond skills to have.”

James added that communicating and presenting complex ideas and insights to different audiences will be crucial for workers in the future. You can learn the best way to give a presentation at work in this recent Hays blog.

As well as these skills, everyone should increase their AI abilities, whether they’re new to work or later in their career. As Nadine put it: “To stand out in the job market, candidates need to demonstrate they’re comfortable working with AI. They should showcase real projects or contributions, rather than a simple bullet point on a CV.

“If you’re not currently showcasing your AI skills, there are ways to do this. Sharing insights with co-workers, acting as a mentor to others, and inspiring management with AI supported projects will go a long way.”

For James, there’s no doubt that generic tech skills will become saturated, so if you’re looking for a career in technology, think about the areas where human intervention is needed. “Look at niche technologies like cyber security, cloud and data. Human input is still essential.”

For early-career professionals, the message is clear. Your curiosity, adaptability and willingness to learn are your greatest assets. Embrace AI, but don’t underestimate the value of your human skills.

For employers, the challenge is to look beyond short-term efficiencies and invest in the long game. Gen Z isn’t just ready to work with AI, they’re ready to lead with it. The future of your workforce depends on how you support and shape that potential today.

Because in the end, it’s not about AI replacing people. It’s about people learning how to thrive alongside it.

Tomorrow’s tech talent: the 5 roles that’ll support your organisation

AI implementation will continue to dominate headlines as a business focus, and tech roles are set to evolve. In this blog, James Milligan explores the in-demand tech jobs for the future and how these specialists will support your organisation.

Whether you’re a business leader or a jobseeker, this article will help you learn the skills of the future.