HR leaders prefer AI investment over hiring Gen Z graduates
Many hiring managers would rather invest in artificial intelligence tools than hire recent Gen Z graduates for entry-level jobs, according to a new report, which further uncovers the impact of AI in early-career talent.
Findings from a new ResumeTemplates.com survey showed that 48% of hiring mangers would choose to invest in AI tools than hire and train a recent college graduate for entry-level work.
In fact, 55% of companies have already channelled entry-level hiring budgets to AI tools.
Another 45% said they have already restructured so one senior employee using AI does the work of multiple entry-level hires.
The findings indicate the impact of AI tools on early career talent, following previous warnings that the technology could potentially wipe out entry-level jobs because it can carry out most of their tasks.
The problem with Gen Z workers
But beyond this advantage, the respondents in the ResumeTemplates.com survey noted that investing in AI allowed them to avoid the common issues surrounding the employment of Gen Z talent, who make up a significant portion of entry-level applicants.
Gen Z talent have earned the reputation in workplaces for lacking motivation and professionalism, as well as their alleged entitlement at work and poor communication.
Many HR leaders noted that investing in AI allows them to sidestep some of these common problems with Gen Z employees.
They noted that AI investment means no early quits (37%), no management hand-holding (31%), no professionalism issues (39%), and no workplace drama (30%).
More than half of HR respondents added that some practical advantages of using AI include faster onboarding (61%) as well as reliable and consistent output.
Others also noted that AI tools are available 24/7 (52%) and cost less (48%) than entry-level graduates.
Chief Career Strategist Julia Toothacre said the findings mean that new grads can expect fewer opportunities in companies that are more AI-focused.
"This is not an uncommon strategy when new technology is introduced," Toothacre said.
"Companies are still figuring out how to implement AI, and its true impact on the work, which will vary by industry and business type."
Another challenge for Gen Z employees is the number of older workers who might have been laid off over the last few years, further overwhelming the market, according to the career strategist.
"Unless a position is specifically designated for recent graduates, new grads should expect significant competition in the 2026 market," Toothacre said.
Replacing entry-level employees with AI
Meanwhile, organisations have long been warned against replacing entry-level employees with AI, citing the practice's potential impact on the talent pipeline for senior leadership.
A previous report from Cognizant and Pearson noted that entry-level roles will likely evolve to positions where employees will supervise or manage AI systems.
Ali Bebo, chief human resources officer at Pearson, previously stated that the most successful organisations in the AI era will be focused less on replacing tasks and more on building capabilities that help humans and AI work together.
"That starts with early-career talent," Bebo said. "The future belongs to organisations that combine AI innovation with a deep understanding of how people learn, develop, and apply new skills in the real world."
