Employers would rather hire AI than Gen Z graduates, Hult survey finds

Remote workers began returning to the office in droves in early 2024, with major companies like Meta, Google, and Amazon implementing stricter in-person work policies.

Key findings: A new survey from Hult International Business School reveals that 37% of employers would prefer to hire AI robots over recent Gen Z graduates.

• The study surveyed 1,600 employers and full-time employees
• 96% of employers believe college education isn’t adequately preparing students for jobs
• 89% of employers actively avoid hiring recent graduates
• 98% of organizations report struggling to find talent

Employer concerns: Companies cite specific issues with hiring recent graduates, pointing to a growing disconnect between academic preparation and workplace requirements.

• 60% of employers say recent graduates lack real-world experience
• 55% report that new graduates struggle with teamwork
• The majority of recent graduates (77%) learned more in six months on the job than during their four-year education
• 94% of recent graduates express regrets about their degree choice

Expert perspectives: Industry leaders and consultants offer diverse views on the growing preference for AI over human workers.

• HR consultant Bryan Driscoll argues this trend reflects employers avoiding responsibility for training and development
• Finance expert Kevin Thompson points to the cost-effectiveness and efficiency of AI compared to human workers
• Academic instructor Alex Beene notes that Gen Z’s entry into an “employee’s market” has shaped their workplace expectations

Workforce implications: The shift toward AI preference over human workers raises significant concerns about the future of employment and economic equality.

• Companies’ reduced investment in training programs has created a skills gap
• The trend could lead to wage stagnation and increased economic inequality
• Recent graduates may need to find alternative ways to gain experience before entering the workforce
• Traditional on-the-job training opportunities are likely to decrease

Future workforce dynamics: The growing preference for AI over human workers signals a fundamental shift in hiring practices and employee development, potentially requiring new graduates to arrive with more practical skills and experience while raising questions about the long-term societal impact of prioritizing automation over human capital development.