Why new graduates are afraid of AI

Despite initial concerns, plenty if employees are excited about the growing use of artificial intelligence and how it may make their jobs easier. New graduates, however, fear that the advanced tech may not leave any jobs for them.

Around two-thirds of U.S. occupations are expected to experience some degree of AI automation, according to a 2023 report by Goldman Sachs. As a result, education technology company Cengage Group's recent Employability Survey found that 46% of new graduates are feeling threatened by the growth of AI and it even has half of them questioning their workforce readiness.

"Many of the headlines have been focused on whether AI will take jobs from new college grads," says Rya Conrad-Bradshaw, vice president of corporate markets at Cengage Work. "Our perspective is that new grads won't lose their jobs to AI, but may to someone who knows how to use AI.  This is the upskilling side of the story that doesn't always get told."

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As more employers are seeking candidates with AI skills, recent graduates are feeling under qualified for entry-level roles because they lack the skills and experience to use AI on the job. Cengage's report found that 21% of recent grads say their college didn't provide them with the skills needed to feel job-ready, despite 68% of employers saying many employees will need to be reskilled or upskilled in the next three to five years due to emerging technology. Young talent is on the same wavelength, with 61% reporting they will need to develop or strengthen their digital skills due to AI.

"There's a misconception about being tech savvy versus having tech skills," Conrad-Bradshaw says. "Yes, younger generations grew up in the age of technology and typically have basic digital skills, but that does not necessarily correlate to the digital skills employers are seeking." 

One of the reasons is that new talent currently lacks the kind of experience where they would normally acquire those kinds of digital skills. Cengage's report found fewer graduates reported having internships, externships and apprenticeships in 2023 — down to 47% from 63% in 2022 — and more than a third of those graduates had to find work experience themselves. 

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"Employers should continue investing in upskilling initiatives that help current and potential employees feel prepared for the workforce and keep up with changing technology — including AI," Conrad-Bradshaw says. "This is especially important since learning opportunities about AI are only bound to grow."

Employers can do so by ensuring that their upskilling initiatives include new AI tools and other technologies that would help new hires develop skills they may not have had the opportunity to learn in college, according to Conrad-Bradshaw. Considering 87% of companies are already dealing with a skills gap according to Cengage, or expect to within the next few years, it's a strategy that would benefit all employees at a company no matter their seniority.  

"It's important for recent grads to use both their current credentials and continual learning as tools to stay ahead of these skills gaps," she says. "Not only are employees more likely to stay in their roles when they have a path for growth and development, [but] expanding access to opportunities where workers can learn and earn can help the incoming workforce feel more prepared."