A recent survey by Hult International Business School found that 37% of employers prefer to hire artificial intelligence (AI) over graduates. The survey also revealed that 98% of hiring managers struggle to find the right talent, and 89% actively avoid hiring recent graduates.
Conducted in October 2024, the survey included 1,600 respondents—800 HR professionals and 800 full-time employees (recent graduates) in the U.S. It found that 96% of employers believe higher education does not adequately prepare students with the necessary job skills.
Why Managers Choose AI Over Gen Z?
The gap between higher education and the needs of the workforce is becoming increasingly apparent, especially as Gen Z enters the workforce. The survey shows that 37% of managers prefer AI over new graduates.
But why? The main reasons include a lack of real-world experience (60%), poor teamwork skills (55%), and the high cost of training Gen Z employees (53%). In addition, half of respondents (50%) perceive Gen Z's work ethic as lacking.
Is this a sign of a major shift in hiring trends or a wake-up call for the education system and the younger generation?
Work vs. College: The Reality
A study sponsored by Hult International Business School reveals Gen Z's perspective on the gap between education and the workforce.
A striking 77% of respondents believe they learned more in six months on the job than in four years of college. In addition, 85% wish their education had better prepared them for career challenges, especially with the emergence of AI as a new competitor.
Furthermore, 87% of Gen Z believe on-the-job training is far more effective than their college education, while 55% say their degrees are irrelevant to their current jobs. Regret is also widespread—94% of recent graduates are dissatisfied with their degrees, and 43% believe they chose the wrong major.
Is AI Really More Job-Ready Than Humans?
Meanwhile, the 2023 ResumeBuilder survey found that 74% of managers believe Gen Z is more difficult to work with than previous generations, citing a lack of independence as a key challenge. Alarmingly, 54% of Gen Z employees were fired within their first 90 days on the job.
On the other hand, AI is seen as more efficient, measurable, and free of complex interpersonal dynamics. However, it still lacks the ability to completely replace the complex roles that humans play in the workplace. The preference for AI isn't just about innovation—it also reflects growing business frustration with the generational skills gap in the modern workforce.
Gen Z, AI, and the Future of Work
Despite frequent criticism, Gen Z has strengths that make them valuable in today's workforce. Having grown up in the digital age, they are highly skilled in technology, social media, and data analytics, and they are comfortable with online learning and remote work tools - skills that are critical in hybrid work environments.
They are also driven by values such as social justice, sustainability, and diversity, which align with modern corporate social responsibility goals.
But challenges remain - how will they compete with AI? The key is to adapt. By honing their digital skills, collaborative abilities, and resilience in the workplace, Gen Z can remain relevant.
At the same time, companies must focus on developing young talent rather than simply replacing it. Striking the right balance between technology and human skills will shape a more innovative and inclusive future of work.
