Will AI displace entry-level jobs or be the ticket to promotion to Gen Z?

AI For Business


As the first generation to enter the workforce armed with AI tools, many Gen Zers are heartbroken.

Some 68% of these young professionals are concerned about AI automation, and 58% use AI tools at least three to four times a week, according to a new study from think tank Oliver Wyman Forum. Additionally, nearly half of Gen Z say AI has already changed the capabilities and types of work expected of them.

The findings, released earlier this week, are based on survey responses from 300,000 consumers and workers collected over the past five years, including 45,000 Gen Z adults. The most recent survey was conducted last year.

Research shows that today’s youngest employees are less anxious about technology and more inclined toward AI than older employees, who use it less frequently.

For example, compared to Boomers, Gen Z is 1.7 times more likely to participate in AI training and 2.3 times more likely to report increased productivity from using AI in the workplace.

AI doomsayer vs optimist

There are good reasons for young workers to be on high alert. At the World Economic Forum in Davos this week, the CEOs of Google DeepMind and Anthropic each said they were beginning to see how AI could minimize the need for junior roles at their companies.

Dario Amodei, head of Anthropic, also told the conference that he had not changed his prediction from May, when he warned that half of entry-level white-collar jobs could be eliminated by AI within the next five years.

Meanwhile, economist Mark Summerlin said in November that companies may pause hiring young workers as they wait for the benefits of AI, and that the technology could ultimately lead to fewer jobs for recent graduates. Some companies are already citing AI directly or indirectly as a reason for layoffs.

The outlook is grim, as the unemployment rate for U.S. college graduates remained high at 5.3% in the third quarter, according to the New York Fed’s latest analysis.

Some company leaders are more optimistic about AI’s impact on Gen Z’s careers.

Earlier this month, Figma CEO Dylan Field said on the “In Good Company” podcast that AI skills are good for recruiting young professionals, and that technology won’t eliminate entry-level jobs.

Similarly, Reid Hoffman, a venture capitalist and co-founder of LinkedIn, said in a video posted to his YouTube channel in June that young people should use their AI familiarity as a selling point when looking for jobs.

Skip the hassle

Some Gen Z workers say that thanks to AI, their careers are progressing faster than they would have otherwise.

Lindsay Grippo, 28, credits the technology with helping her practice big-picture strategic thinking when writing newsletters, blog posts, and other copy for her editorial role at Codeword, a New York-based digital marketing agency. She views the AI’s output as if it were coming from younger creators.

“I evaluate how well project goals are being met, just as my manager evaluates my work,” she said. “They are trained to think like more advanced-level creators.”

Codeword founding partner Kyle Monson said Codeword hasn’t changed its hiring plans in response to AI, and that younger employees like Grippo appear to be among the technology’s most proficient users.

Monson, a 46-year-old Gen-Xer, sees AI fluency as an advantage for younger workers and is jealous. He said that when he started his career, he had to do a lot of menial tasks, such as data entry and note-taking, before being promoted.

AI can now perform these types of tasks, freeing up junior talent to tackle higher-value challenges, ones that require judgment.

“That’s when your career really starts to take off,” Monson said.





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