UK leaders hobbling long-term prospects by automating Gen Z jobs

A third of bosses in the UK say they believe their first role would not exist today, due to the introduction of AI in their field. But while they are aware, first-hand, of the importance of junior roles, three-quarters claim they are already using the technology to reduce their firm’s headcount.

In recent months, a growing number of consulting firms – including the Big Four – have announced reductions in graduate recruitment, opting instead to deploy AI technologies to handle entry-level tasks. While the short-term picture may mean this enables those firms to improve their profitability amid slow growth, however, they are potentially shooting themselves in the foot, looking ahead.

While firms could find value by using AI to augment how new team members work, and change the roles that entry-level employees inhabit, that is not the case here. Instead, those roles are simply being replaced – and a useful door for future talent is closing with them.

British Standards Institution

This is a trend which a new study by the British Standards Institution (BSI) has warned could be seen across the wider economy soon. The global poll saw over 850 business leaders questioned over AI usage is framed in public corporate statements – and found that 61% of firms were investing in AI with a primary view of improving productivity and efficiency. Meanwhile 49% hoped it would reduce costs – something 18% directly admitted would be linked to reducing headcount.

Breaking the figures down into national markets, the researchers found that in the UK, there was a clear focus on where firms thought these reductions should be made. A 76% majority of bosses said AI was helping to reduce headcount, while 38% expected to specifically reduce junior and entry roles connected to ‘AI efficiencies’.

While promises of what AI can do have very often differed from what AI actually delivers, many leaders are also convinced there has already been a profound impact from this. A 30% chunk contended that their first role would not exist today if AI tools had been available when they began their career – and 50% would not have developed the skills needed for their current role, if they had worked in augmented roles.

Kicking downwards

This kind of awareness of course does not mean that leaders are any less determined to kick away the ladder, if it improves partner dividends in the here and now. But what does that mean for young professionals looking to begin their careers now?

According to the study, the shift presents a major opportunity for SMEs. With large organisations embracing AI more aggressively, mid-tier firms are finding it easier to recruit new talent. At the same time, AI adoption comes with notable costs, so the ‘savings’ are less pronounced to firms with smaller incomes to begin with – meaning that while 53% of large firms expect further reductions in roles inhabited by Gen Z, that compares to just 34% of SMEs. The implication, according to the researchers, is that SMEs could become the backbone of skills development, providing greater opportunities for employment and training for Gen Z.

Kate Field, global head of human and social sustainability at BSI, said, “Our findings suggest a troubling trend: senior leaders may be ‘pulling up the ladder’, prioritizing short-term productivity over long-term workforce resilience. If left unchecked, this could have lasting consequences, from weakening our skills pipeline, deepening generational inequality and our research suggests, dividing large companies and SMEs. SMEs have been placed in a critical position, shaping the future of work by shouldering the responsibility of training for Gen Z.”