AI Job Disruption: Gen Z Faces Hiring Freeze as Tech Leaders Warn Entry-Level Roles Are at Risk
Artificial intelligence is reshaping the global workforce at a pace that has many business leaders rethinking how they hire. From OpenAI’s Sam Altman to Anthropic’s Dario Amodei, tech executives continue to warn that entire professions could be disrupted within the next five years, with entry-level employees most vulnerable.
AI is reshaping hiring as entry-level jobs disappear. Gen Z must adapt skills to meet new workforce demands, experts warn.
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Layoffs are already reshaping industries. More than 82,000 tech employees have lost jobs as automation and cost-cutting accelerate. But the impact extends far beyond Silicon Valley boardrooms. Bill Hoogterp, who has advised thousands of top executives over several decades, confirms that hiring decisions are shifting.
According to Hoogterp, many companies are placing a pause on entry-level recruitment. Leaders are questioning the value of onboarding first-time lawyers, coders, and other new hires when AI systems can already generate code, draft copy, and analyze data faster and cheaper. Instead of filling jobs simply to grow teams, executives are demanding problem-solvers who deliver measurable results.
This scrutiny poses new challenges for Gen Z graduates, particularly the 4 million young people currently classified as NEETs—not in employment, education, or training. Traditional career paths are narrowing, leaving many with degrees in fields where automation has already changed the demand for workers.
Hoogterp advises Gen Z to identify where their strengths meet global needs. “What are you good at? What does the world need? Look at where they intersect and where they overlap—that’s really going to be your magic zone to pursue,” he explained. Taking a holistic view of skills, rather than relying solely on credentials, could reveal opportunities in emerging industries.
AI is also expected to create new roles, just as past technological shifts did. Typewriters gave way to laptops, hand-drawn design evolved into digital tools, and entirely new IT careers emerged in the process. However, employers will only introduce jobs that bring genuine value to business operations.
Entrepreneur Mark Cuban recently emphasized that Gen Z has an advantage if they embrace AI and learn how to implement tools like OpenAI’s software within organizations. He described this knowledge as critical for nearly every role available to new graduates.
Nvidia CEO Jensen Huang echoed that sentiment at the Milken Institute’s Global Conference, stating that every job will be affected by AI. He noted that workers are unlikely to lose roles directly to artificial intelligence itself, but rather to colleagues who adopt AI tools effectively.
The message from business leaders is clear: entry-level opportunities are shrinking, but those who master AI technologies stand the best chance of shaping the next wave of careers.
