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According to an international business survey, about 40% of managers would rather hire artificial intelligence robots instead of a Gen Z graduate. The study, shared in Newsweek, says that 98% of human resources (HR) leaders were struggling to find talent, but 89% avoided hiring recent graduates. Is AI the newest threat to Gen Z jobs? For 37% of managers in this survey, the answer is âyesâ, âbots are preferred to Gen Z. In the research, sponsored by Hult International Business School, hereâs what else they found out, according to responses from recent grads:
- 77% of Gen Z respondents say they learned more in 6 months at their job than in their entire 4-year education
- 85% wish their college had better prepared them for the workplace, especially since AI is now considered career competition by some employers
- 87% of Gen Z respondents say they received better job training from their employer than they did from their undergraduate education.
- 55% say their college education didnât prepare them at all for their job.
Inside the Preference for AI and Bots Over Gen Z
Why would managers opt for artificial intelligenceâa tool still in its developmental stagesâover young, human talent? Part of the answer lies in the reputation Gen Z has cultivated in the workforce. (The other part? All of the hype around AI, superintelligence and AI agents – but thatâs another story). Known for being the first digitally native generation, Gen Z workers bring technological fluency and adaptability to their roles. However, as employees they are often criticized for lacking professional resilience, a strong work ethic, and the ability to handle constructive feedback. According to a 2023 survey by ResumeBuilder, 74% of managers find Gen Z employees harder to work with than other generations, with many citing issues like entitlement and a lack of independence as major concerns.
The survey also revealed that a staggering 54% of Gen Z employees are let go within their first 90 days on the job. This statistic underscores the difficulties both employers and young workers face in adapting to each otherâs expectations. Meanwhile, AI solutions, though incomplete, are perceived as cost-efficient, scalable, and free from interpersonal challenges. Yet, AI is far from ready to take on complex human roles, making the preference for it over Gen Z a signal of deeper frustrations. Or perhaps a wish from hiring managers, as agentic AI continues to evolve?
Why Are Business Leaders Preferring AI Over Gen Z?
In the Hult International survey, leaders say the top reasons for their frustration with Gen Z include:
- Recent graduates donât have real-world experience (60%)
- Gen Z lacks a global mindset (57%)
- Gen Z doesnât know how to work well on a team (55%)
- Training is too expensive for Gen Z (53%)
- This generation has poor business etiquette (50%).
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: “It comes down to economics and efficiency. Training an AI to perform tasks is much easier and more cost-effective than training a human while paying them on the job. AI executes tasks exactly as programmed at a fraction of the cost. Many employers see the value in leveraging AI for basic task management, particularly in support roles and entry-level positions.” And AI never needs a vacation, doesnât have to go to the doctor, and never sleeps. Hold on a minute: what human, at any age, can say the same? The choice of 37% of managers who prefer AI is an indictment of every generation, raising ethical questions that threaten the future of work as we know it.
Communication is Critical for Gen Z
Despite the criticism, Gen Z possesses qualities that make them invaluable in todayâs economy. They are the first generation to grow up with the internet, and this digital fluency makes them adept at navigating technology, social media, and data analysis. Their comfort with online learning and remote work tools gives them a natural advantage in hybrid work environments. Furthermore, Gen Z tends to be values-driven, often advocating for social justice, sustainability, and diversityâqualities that align with modern corporate social responsibility goals. After all, none of us is as smart as all of us. How can Gen Z adapt to the brave new world of work, where AI is seen as both a career asset, and a competitor? What can leaders do, to reach out and bridge the gap – so that the youngest generation in the workforce can access new skills, and create new outcomes?
HR consultant, Brian Driscoll, tells Newsweek that the educational system is whatâs failing: “As someone who went through years of education, including law school, I can tell you this: colleges are not preparing students for real-world work. Education today emphasizes theory over practice. Sure, learning Greek mythology is fascinating, but unless you’re teaching it, how does that prepare you to communicate effectively in a corporate meeting or demonstrate professionalism? It doesn’t.”
One challenge frequently cited is communication style. Many within Gen Z have developed their social skills on social media – deeply impacted by the isolation of the pandemic. Unafraid to broadcast the minutiae of their lives on social platforms, social interaction is a challenge for some. One in five Gen Z workers reports that they havenât had a single direct conversation with someone over 50 in their workplace in the last year. The point here is: interfacing with more experienced co-workers can be a valuable career asset. Of course, information is everywhere (just ask ChatGPT). But insider information – what some call cultural knowledge, savoir faire, or âhow stuff gets done in this companyâ – is still an inside job.
Charlotte Davies, a career expert from LinkedIn, tells Fortune, âMentoring can help bridge generational differences in the workplace and help generations who are decades apart better understand each other,â she said. Note that about 40% of those over 55 havenât spoken to a Gen Z colleague in the past year. The challenge, it seems, exists for workers at every age – and the challenge is communication. Beyond the broad brush strokes of statistics and generational generalizations (yes, thatâs a thing – also called âbiasâ in some circles) thereâs an opportunity for individual conversations.
What Gen Z needs is found inside the oldest tool in business, not the newest (agentic AI). The oldest tool in business is still the conversation. And itâs a great time to start one. Whether you are a new graduate or a seasoned workplace veteran, connection (not automation) is where the story changes. âActively listening to colleagues outside of your cohort can help avoid assumptions about different generations and their attitudes to work, [help to] build trust and rapport and allow you to learn from each othersâ experiences,â Davies concludes. Before you throw in the towel on Gen Z, and ask an AI agent to pick it up, consider the power inside of the conversation. Could it be that success starts with your story? Is it possible that individual connection is the first step in breaking stereotypes, and reversing troubling trends? For Gen Z, and every other generation, the answer is âyesâ.