09 Oct 2025

AI Boom Threatens Gen Z Job Prospects as Firms Cut Back on Hiring

Written by  Shani Brooks

A new report warns that young workers are at risk of being sidelined as global businesses increasingly turn to artificial intelligence (AI) instead of hiring new staff. The British Standards Institution (BSI) study, which surveyed more than 850 executives across seven countries including the UK, revealed that many employers now favour automation to save costs and address skills shortages rather than investing in entry-level recruitment.

According to the findings, 41% of business leaders said AI tools had already allowed them to reduce employee numbers, while nearly one in three admitted they look to AI before advertising new roles. A quarter of respondents believed most tasks carried out by junior workers could soon be automated. BSI chief executive Susan Taylor Martin said the challenge lies in “balancing productivity gains with the need to nurture a thriving workforce”, calling for long-term investment in people alongside technology.

The report found that almost 40% of companies have already reduced entry-level positions due to automation, with AI increasingly handling research and administrative work. Despite these concerns, over half of business leaders believe the benefits of AI adoption will outweigh its disruption to jobs.

BSI’s analysis of company reports showed “automation” mentioned seven times more frequently than “training” or “upskilling”, underlining a shift towards technology-driven efficiency over human development.

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