Key Takeaways:
- Early labour market data shows AI has not yet caused widespread job displacement, but the impact on entry-level roles is more pronounced.
- AI-exposed jobs in fields like software engineering and customer service saw a 13% relative decline in early-career employment.
- Organizations will need new training and talent development models to sustain future pipelines.
- Core business skills — judgment, collaboration, communication — remain crucial, and employers may need to rethink how they assess workforce readiness.
AI’s growing influence on early-career work
Amid the rapid expansion of AI and a mixed labour market, leaders are questioning how technology will affect early-career workers — and whether traditional career pathways are still viable.
Despite growing fears that AI will replace jobs, early data suggests a more nuanced picture.
A new study by a research center at Yale University found that AI has not meaningfully disrupted the labour market since the launch of ChatGPT. At the same time, most organizations are not yet seeing a return on their AI investments.
But the risks are not evenly distributed. Early-career workers appear more vulnerable as organizations experiment with automation.
A recent report from CIBC suggests that people aged 25 and under are more likely to work in areas at higher risk of being replaced as AI advances, particularly in occupations such as software-related roles and customer service. These AI-exposed jobs saw a 13% relative decline in early-career employment after researchers analyzed payroll data from ADP.
This trend held regardless of education level, remote-work status, or job function within the same company. Less AI-exposed roles, such as home health aides, were largely unaffected — and even experienced hiring growth.
Still, researchers say this early displacement doesn’t seal the long-term fate of young workers. Study co-author Bharat Krishnan Chandar notes that previous technological shifts, such as the IT revolution, ultimately led to strong wage and employment growth after an adjustment period. Whether AI follows a similar trajectory remains to be seen.
Why employers need new training models
The findings raise a critical question: How can organizations continue building strong early-career pipelines in an AI-driven business environment?
Chandar suggests employers consider new ways to bring young talent into the workforce — including apprenticeships, internships, and partnerships with schools and universities to ensure students develop the skills they need to succeed.
Some leaders are exploring even more innovative approaches.
Kelley Steven-Waiss, chief transformation officer at ServiceNow, suggested in a conversation with Fortune that companies hire junior employees without initially assigning them to a specific role. Instead, they would join a rotating “problem-solving pool” and embed across teams until they find the best match for their skills and interests.
“It’s a problem-solving team with a mission and they will learn how to collaborate, and we will likely see innovative new solutions that existing teams wouldn’t have come up with,” she says. “They’re wearing the jersey of the problem they’re actually working to solve, and they are going to learn so much about the dynamics, about how the company makes money.”
The rise of new credentials and workforce readiness indicators
One reason AI affects entry-level roles disproportionately is that experienced workers know how to use AI effectively, while younger employees may lack both technical context and foundational business skills.
A survey from the U.S. Chamber of Commerce found that:
- 84% of hiring managers say high school graduates are not ready for work
- 80% believe today’s graduates are less prepared than previous generations
- 92% support more business education in high school
Employers increasingly prioritize hands-on experience, recognized industry credentials, and strong interpersonal skills such as communication and critical thinking.
Canadian employers are reporting similar concerns. A recent survey from the Conference Board of Canada found that 37% of employers feel new hires lack essential soft skills, making it harder for early-career employees to integrate successfully into the workplace. This signals a clear readiness gap — but also an opportunity for young workers who intentionally strengthen these skills to differentiate themselves in a competitive labour market.
To contribute meaningfully, young workers need core business skills that enhance their ability to use AI responsibly and effectively, says Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce.
“If Gen Z doesn’t have core business skills, they risk missing out on roles that require judgment, collaboration, and adaptability — things AI simply can’t do,” he explains.
To help address this gap, the Chamber is partnering with the College Board to launch AP Career Kickstart, a program designed to build career-ready skills.
For employers, this may shift how they evaluate entry-level candidates. Instead of focusing on specialized technical skills or job-specific knowledge, organizations may benefit from recognizing credentials that verify human skills, such as communication, collaboration, and business acumen — as markers of AI readiness.
As Bradley notes: “Employers should think broadly about indicators of workforce readiness. It’s about recognizing potential, not just pedigree.”
Preparing the next generation in an AI-driven economy
AI’s influence on entry-level work is real, but it’s not yet definitive. While early disruptions are emerging in AI-exposed fields, the long-term story remains unwritten.
What is clear is that organizations will need to:
- Rethink early-career pathways
- Invest in learning and development models that build core skills
- Create environments where young workers can develop judgment, adaptability, and problem-solving capabilities
- Recognize and reward potential, not just past experience
As AI continues to evolve, so will the skills required for success. The organizations that thrive will be those that invest early, adapt quickly, and prepare their people — especially early-career talent — for a future where human skills matter more than ever.
This article is an adaptation of the original Great Place To Work® , written by Ted Kitterman, Content Manager.
Tools & Resources
- Trust Index™ Employee Feedback Survey: A research-backed survey that helps organizations understand employee perceptions, identify cultural strengths, and uncover the drivers behind retention challenges.
- Great Place To Work® Certification: Certification offers a clear picture of culture health, provides benchmark comparisons, and supports retention by highlighting authentic employee experience insights.
- Employee Well-being: Guidance and measurement tools that help organizations understand emotional, social, and mental well-being, which directly influence long-term retention and workplace stability.
Feedback
We value your feedback! Your insights are crucial to helping us create meaningful content. Did the strategies in this article inspire new ways to build resilience in your workplace culture? Are there specific challenges you'd like us to address? Share your suggestions or ideas with us. Together, we can develop resources that truly make a difference. Have feedback? Fill out this form by clicking here.
Get Certified
Want to know how your people feel about your organization’s resilience and adaptability? Get Certified today and learn the answer to this question and gain many more insights along the way.
