A recent survey in a Newsweek article revealed a surprising trend in the hiring landscape — a significant portion of employers prefer artificial intelligence (AI) over hiring recent graduates. According to Hult International Business School research, approximately 37% of employers would opt to hire AI robots rather than a Gen Z graduate. This shift in preference reflects deeper concerns about skill gaps and the rising influence of technology in the workplace.
The disconnect between education and job requirements
The decision to hire AI over young workers raises essential questions about the effectiveness of current educational systems. Despite emphasising higher education, most employers believe a college degree does not adequately prepare students for real-world jobs. The Hult survey revealed that 96% of employers feel that most college programs fail to equip students with the necessary job skills. Moreover, a staggering 89% of employers expressed a reluctance to hire recent grads at all.
Interestingly, recent graduates themselves feel the disconnect. In the same survey, 77% of recent grads admitted they learned more in six months on the job than in four years of formal education. This disparity between what students are taught and what employers need fuels the growing preference for AI, as machines can be trained to perform specific tasks more efficiently than humans—especially in entry-level positions.
Gen Z’s struggles in the workforce
Gen Z, born between 1997 and 2012, has often been criticized for lacking the experience, skills, and reliability needed to succeed in the workplace. According to a previous report by PublicSquare and RedBalloon, 68% of small business owners labelled Gen Z as the “least reliable” group of employees, with 71% noting that they were more prone to workplace mental health issues.
Employers are particularly concerned about Gen Z’s lack of real-world experience. The Hult survey found that 60% of employers cited this as a major reason for not hiring recent grads. Additionally, 55% said that young workers struggle to collaborate effectively with teams. While many of these criticisms may reflect deeper societal and cultural challenges, they nonetheless contribute to the growing preference for AI over human employees.
The economic shift — AI as a cost-effective alternative
While the criticism of Gen Z’s work habits continues, many employers see AI as a cost-effective solution to staffing issues. The logic is simple — AI doesn’t require healthcare, time off, or benefits, making it a cheaper alternative to human workers. An HR consultant, Bryan Driscoll, argues that this shift isn’t necessarily about Gen Z’s shortcomings but rather about companies trying to minimize their costs. “It’s easier and cheaper to train AI than to provide extensive training for human employees,” Driscoll states.
This economic reasoning has made AI particularly attractive for routine and entry-level roles. Employers increasingly invest in technology that can perform repetitive tasks precisely and efficiently, reducing their reliance on human labour. However, this growing dependence on AI raises concerns about job displacement and its broader impact on the workforce.
Training and ethical considerations
While AI may offer an immediate solution for employers, experts warn that this shift could have long-term consequences. Kevin Thompson, a finance expert, highlights the importance of balancing AI with investment in human capital. “Employers need to shift their focus towards developing their human workforce, providing training and mentorship to bridge the skills gap,” Thompson suggests. Without such investments, companies risk fostering a workforce ill-prepared for tomorrow’s challenges.
The growing preference for AI raises ethical questions about the role of technology in the workforce. Bryan Driscoll stresses that relying too heavily on AI may exacerbate income inequality and stagnate wages, ultimately eroding the concept of a thriving, human-centred workforce. “What happens when we prioritize robots over people?” Driscoll asks, echoing the concerns of many about the societal and economic implications of an AI-dominated job market.
A new era of workforce preparation
As employers increasingly look to AI as a solution, Gen Z workers face the challenge of overcoming scepticism about their abilities. The changing nature of work and the rise of automation calls for a new approach to education and skill development. The era of traditional on-the-job training is fading, and employers will expect candidates to bring immediate value from day one. However, this also underscores the need for businesses to invest in comprehensive training programs and adopt more adaptive models for workforce development.
Ultimately, the balance between AI and human workers will shape the future of the labour market. While AI can enhance productivity, human ingenuity, adaptability, and interpersonal skills remain irreplaceable. Ensuring that the workforce—especially Gen Z—is equipped with the right skills will be crucial to maintaining a thriving economy that values technological advancement and human potential.