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The job market is becoming increasingly challenging for Generation Z, the group born between 1997 and 2012, as artificial intelligence (AI) continues to reshape the world of work. A recent study conducted by the British Standards Institution (BSI) has highlighted a worrying trend: many global companies are prioritizing investment in AI over hiring new staff for entry-level positions. These roles, often the first step for young people entering employment, include tasks like basic administration or research, which are now frequently managed by technology.

The BSI surveyed over 850 business leaders from seven countries, including the UK, the US, and Japan. The findings are striking: 41 percent of these leaders stated that AI is already reducing the need for employees in their organizations. Additionally, nearly a third admitted that their companies are more likely to turn to AI solutions before considering human hires. Looking to the future, two-fifths of the leaders predict this reliance on technology will increase over the next five years. Most alarmingly for young job seekers, a quarter of the bosses believe that the majority of junior-level tasks could soon be completely automated.

This shift towards AI is largely driven by the desire to boost efficiency and reduce costs. While AI tools can address skills shortages without the expense of training new staff, this often comes at the expense of job opportunities for humans. Susan Taylor Martin, BSI’s chief executive, stressed that although AI offers significant potential for improving productivity, businesses must not overlook the importance of investing in people. She described finding a balance between technological advances and a healthy workforce as one of the greatest challenges of our era.

The impact of these changes is already evident. Around 39 percent of the surveyed leaders confirmed that entry-level positions have been cut back due to AI handling simpler tasks. Meanwhile, in countries like the UK, the job market is becoming tougher, with unemployment rates reaching a four-year high. This creates a difficult landscape for young people trying to launch their careers. Although over half of the business leaders believe that AI’s advantages will eventually outweigh its drawbacks, the immediate effects on Generation Z are a cause for concern. The question remains: how can society ensure that technology supports young workers rather than replacing them?