Is AI replacing entry level Gen Z workers?

“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.