Gen Z is more anxious about AI’s effect on their careers than any generation before them: nearly half say their education never prepared them to use it, and more than half of employers expect it to shrink entry-level hiring. Gen Z may not be a fan of AI. I know, it sounds surprising and ironic for a generation that was born with the iPhone in their hands. This digitally savvy generation made their dislike of AI very clear this past graduation season when they literally booed any speaker who mentioned AI. When I researched and published my book “The New Employee Contract: How to Find, Keep and Elevate Gen Z Talent” in March 2022, AI wasn’t in the public eye yet. OpenAI launched ChatGPT later that year on November 30, 2022, and the world and work as we know it were about to change.
Since then, artificial intelligence has been moving faster than a toddler on a sugar rush, and if you think you’re feeling the impact, just ask Generation Z. These digital natives, born somewhere between the mid-1990s and early 2010s, are stepping into a job market that’s changing so quickly it might as well come with a warning label. As AI weaves itself into every corner of business, we have to ask: Are colleges actually preparing young people for this brave new world? Do Gen Z-ers see AI as a golden ticket or a source of career anxiety? And what skills will actually matter when the robots come knocking?
Recent data from JUST Capital (and yes, even OpenAI is getting in on the action) shows that Gen Z is equal parts anxious and ambitious as they stare down the AI revolution. In this blog, I will dig into what’s keeping them up at night, what’s getting them out of bed in the morning, and how they’re rewriting the playbook for work in an AI-powered world.
|
Metric |
Stat |
|
Grads/students who say school didn't prepare them to use AI |
49% |
|
Grads/students who say AI was never addressed in school |
18% |
|
Corporate leaders who expect AI to shrink entry-level jobs |
52% |
|
Recent grads worried AI will make it harder to land a job |
47% |
|
Recent grads starting or considering starting a business due to AI |
24% |
|
Recent grads who'd use AI-saved time for a side project or business |
36% |
|
Gen Z who say AI tool proficiency will be a must-have for employers |
65% |
|
Gen Z who say strategic thinking will matter |
53% |
|
Gen Z who say people skills will matter |
52% |
|
Gen Z who think degrees/credentials will matter more in the future |
38% |
A key finding from JUST Capital’s recent survey of 1,007 Americans aged 18 to 25 is stark: 49% of students and recent graduates say their school did not prepare them to use AI. Alarmingly, 18% state that AI was never addressed at all during their education. This readiness gap is particularly concerning as AI tools rapidly become essential in the workplace, and employers increasingly expect new hires to be proficient with them.
This isn’t just a few students grumbling in the back row; the disconnect between what colleges teach and what the job market demands is measurable. Without structured AI education, a lot of young people are left wondering if they’re being handed a map to a city that no longer exists. As automation and smart systems rewrite job descriptions, Gen Z’s anxiety about being left behind is real, and it’s fueling some serious questions about their future paychecks. Add in that NYC is banning AI in middle schools, and the gap will only widen with the next generation, way before these kids get into college.
Let’s not sugarcoat it: the job market for young adults is already a tough crowd. In July, youth unemployment stood at 9.1%, more than double the national average. Now, add AI to the mix, and you’ve got a recipe for some serious entry-level jitters. JUST Capital’s quarterly survey of corporate leaders found that 52% expect AI to shrink the number of entry-level jobs in the next few years. Nearly half of recent grads (47%) are worried that AI will make it even harder to land a job in their chosen field.
Gender disparities further complicate the picture. Young women, in particular, are less optimistic than their male counterparts about their employment prospects in an AI-driven economy. This suggests a need for targeted support and interventions to ensure equitable access to opportunities as the job market evolves.
Despite these challenges, Gen Z is not sitting idly by. Instead, many are reimagining their career paths. Nearly one in four recent graduates (24%) are starting or considering starting their own business due to concerns about AI. Additionally, 36% say they would use the time saved by AI to launch a side project or business.
This entrepreneurial spirit may prove critical in a world where traditional career ladders are being disrupted. Gen Z’s willingness to adapt, learn new skills, and create their own opportunities underscores their resilience, even in the face of uncertainty.
Sure, 65% of Gen Z-ers think that knowing how to wrangle AI tools will be a must-have for employers in five years. But here’s the twist: technical chops aren’t the only thing on the menu. Strategic thinking (53%) and people skills (52%) are right up there, proving that being human still has its perks.
This finding aligns with broader trends in the business world. For example, consulting giant EY recently earmarked $100 million in bonuses for employees who excel at “human” skills like innovation and judgment, recognizing that machines cannot replicate all aspects of human creativity and collaboration. Meanwhile, IBM announced plans to triple entry-level hiring for roles such as software development, illustrating that AI and job creation are not always a zero-sum game.
Only 38% of Gen Z-ers think college degrees and formal credentials will matter more in the future. Translation: the value of a diploma is getting a serious reality check, as both young people and employers start to care more about what you can do than where you learned to do it. Professor Galloway has been talking about this for a while, referencing colleges as a “luxury item”, especially those in the super-expensive bracket.
The gap between what colleges teach and what employers demand is widening. It has been for decades, only because changing curricula in colleges is equivalent to trying to turn a battleship. To bridge it, educational institutions must adapt their curricula to include hands-on AI training, critical thinking, and collaboration skills. Partnerships between universities, technology companies, and employers can help ensure that students graduate with both the technical know-how and the “human” skills required for the modern workforce.
For Gen Z, the new playbook is all about self-directed learning, online courses, and internships. Waiting for the curriculum to catch up is like waiting for dial-up internet to load a YouTube video or for a battleship to make a sharp right turn. Micro-credentials and skills-based hiring are quickly becoming the new currency in the job market, and traditional degrees might soon be the collector’s items of the working world.
Gen Z is staring down a workplace that’s being somewhat rewritten in real time by AI, but if there’s one thing they’ve shown, it’s adaptability. Whether it’s picking up new skills, launching businesses, or pushing for smarter education, they’re not just keeping up; they’re setting the pace. With the right support from educators and employers, Gen Z can turn AI from a disruption into a launchpad for positive change.