What leaders need to know about Gen Z, AI, and the future of entry-level work.

Ask most leaders how Gen Z feels about AI, and the answer is often framed in fear. They fear AI will replace entry-level jobs and narrow career paths before they begin. While that concern isn’t unfounded, it doesn’t tell the full story.   

Gen Z’s relationship with AI is nuanced. Young workers recognize its potential, yet they’re equally uncertain about where they fit in an increasingly automated future.  

To better understand this, I spoke with Trent Cotton, Head of Talent Acquisition Insights at iCIMS. We discussed five truths leaders should understand about Gen Z, AI , and entry-level work, informed by data from the company’s January 2026 Workforce Report.   

1. The “AI is replacing early careers” narrative misses the real problem   

AI replacing entry-level jobs dominates headlines, and Gen Z feels it. According to iCIMS data, 51% of Gen Z believe AI poses the biggest threat to their job security. That concern is valid, with a Stanford University Report finding that job postings for early-career workers have declined 13% since 2022 in more AI-exposed fields.  

But Cotton sees the issue as more complex: “For decades, entry-level roles were designed around perceived low value, highly repetitive work. AI is hyper-efficient at automating that layer. The real issue is not that AI is eliminating entry-level roles. It is exposing the need to redesign them around meaningful contributions and development from day one.”   

2. Entry-level roles are for growth, not grunt work   

When entry-level roles focus on grunt work, leaders waste early-career talent and limit long-term potential. Deloitte research shows 89% of Gen Z say a sense of purpose is critical to their job satisfaction.

As AI makes org charts more fluid and democratizes skills and knowledge, entry-level roles, when augmented with AI, can deliver higher-value contributions much earlier. 

Cotton sees value in giving employees flexibility to change direction and shape their own careers. By moving away from rigid career plans toward “opportunity paths,” organizations give employees agency to evolve, pivot and grow over time. This approach, he believes, will define future powerhouse employers.   

3. Gen Z’s AI worries are skills-driven 

Gen Z is not anti-AI. According to Oliver Wyman, 58% use AI frequently and 80% say it boosts productivity. Their concern is long-term relevance. Per iCIMS data, only 36% believe they have skills that are uniquely human and safe from automation.   

Cotton notes organizations increasingly need “orchestrators,” or employees who manage workflows between humans and machines. These roles typically sit in the middle layer of organizations, which raises a critical question: Who is being developed to step into these roles as leaders advance?  

“Entry-level workers should be elevated to orchestrators,” said Cotton. “Working hands-on with AI every day accelerates development and prepares them for the next stage of their careers.” Organizations that take this approach can build stronger succession pipelines rooted in real AI experience, not theory.    

4. Gen Z values capability over credentials   

As AI levels the playing field on resumes, Gen Z is looking for new ways to stand out. According to iCIMS data, 40% say they would welcome skills tests during the application process.   

“When the first craze around skills assessments came in the late 2000s, candidates felt they made hiring harder,” Cotton said. “Now we’re seeing a generation ready to prove what they can do.”  

Employers should take advantage of this and move beyond resumes alone. Use assessments to evaluate capability and surface high-potential talent that might otherwise be overlooked.  

5. AI fluency alone isn’t enough  

AI literacy matters, but it shouldn’t be treated as the sole marker of potential. When organizations overvalue technical fluency, they risk sidelining human skills like problem-solving that drive long-term impact. 

As Cotton puts it, “The competitive edge will always come from people who can connect the dots, interpret nuance and navigate ambiguity.”   

Evaluating both sides of the equation is critical. Organizations that hire and develop for this balance will build more resilient teams. 

The big picture? Much of Gen Z’s AI anxiety isn’t about the technology itself but being left behind. Leaders who intentionally redesign early-career roles around skills and development will build a workforce ready for what’s next. 

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This post originally appeared at com.

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