By Lina Irawan 
The job market has been a sore subject for Gen Z, a demographic grappling with unique challenges as they enter a rapidly evolving professional landscape. With an unemployment rate among young college graduates currently at 5.6%, hovering near its highest level in over a decade outside the tumultuous pandemic years, the economic environment for this cohort remains exceptionally tight. This struggle is compounded by dire warnings from prominent industry executives, such as Anthropic’s CEO Dario Amodei and Ford’s CEO Jim Farley, who have publicly cautioned that the accelerating adoption of artificial intelligence (AI) will inevitably slash a significant number of corporate entry-level positions. These predictions paint a grim picture, suggesting a future where the foundational stepping stones of many careers could be automated away, leaving recent graduates with fewer opportunities to gain initial experience and climb the corporate ladder.
However, amidst this wave of concern, a counter-narrative is emerging from some of the world’s largest corporations. Acknowledging that perpetually cutting off the pipeline of young talent is not a sustainable long-term strategy, a growing number of companies are beginning to reassess their approach. Leading this charge is the $240 billion tech giant IBM, which recently unveiled a surprising and bold plan: far from reducing its intake of young professionals, the company intends to significantly ramp up its hiring of Gen Z graduates. This move by a company of IBM’s stature signals a potentially pivotal shift in how the tech industry, and perhaps the broader economy, views the symbiotic relationship between emerging talent and advanced AI.
Nickle LaMoreaux, IBM’s chief human resources officer, articulated this forward-thinking vision during a recent public statement, emphasizing the strategic importance of investing in early-career talent in the current climate. "The companies three to five years from now that are going to be the most successful are those companies that doubled down on entry-level hiring in this environment," LaMoreaux asserted. Her conviction directly challenges the prevailing sentiment of AI-driven job displacement, particularly as IBM commits to tripling its entry-level hiring, even for roles traditionally thought to be most susceptible to automation. "We are tripling our entry-level hiring, and yes, that is for software developers and all these jobs we’re being told AI can do," she confirmed, underscoring IBM’s belief in the transformative, rather than purely disruptive, potential of AI.
LaMoreaux acknowledged the undeniable reality that many routine responsibilities once defining entry-level jobs can now be efficiently automated by AI. This isn’t a point of contention for IBM; rather, it’s an impetus for strategic redefinition. The company has proactively undertaken a comprehensive effort to rewrite job descriptions across various sectors, embedding AI fluency as a core competency. For instance, new software engineers at IBM will find themselves spending considerably less time on mundane, repetitive coding tasks. Instead, their roles are evolving to prioritize higher-value activities such as complex problem-solving, strategic thinking, and, crucially, direct interaction with customers to understand their needs and deliver bespoke solutions. Similarly, HR professionals will increasingly focus on intervening with and refining AI-powered chatbots, leveraging these tools to handle routine inquiries while dedicating their own expertise to more nuanced employee relations, talent development, and strategic workforce planning.
This deliberate shift, as LaMoreaux explained, is designed to cultivate more durable skills within the workforce, preparing employees for a future where adaptability and higher-order thinking are paramount. By integrating AI as a co-pilot rather than a replacement, IBM aims to create greater long-term value for the company, fostering innovation and enhancing human capabilities. The importance of this approach is further underscored by data from LinkedIn, which identifies AI literacy as the fastest-growing skill in the U.S. This trend suggests that applicants who can demonstrate initiative, comfort, and proficiency with AI tools will be uniquely positioned to break through in a competitive market, particularly at companies like IBM that are actively seeking to leverage AI-fluent talent.
The conventional wisdom, often driven by immediate financial pressures, suggests that early-career hiring is the most straightforward area to cut when companies seek to be leaner and more productive. A report from Korn Ferry highlighted this trend, revealing that a significant 37% of organizations are actively planning to replace early career roles with AI. While such a strategy might offer short-term financial gains, LaMoreaux argues it could lead to severe long-term consequences, potentially creating systemic havoc within organizational structures.
One of the most critical risks is the eventual shortage of mid-level managers. Entry-level positions serve as the essential feeder pool for future leadership. By cutting off this pipeline, companies risk creating a gaping void in the talent development continuum, making it incredibly difficult to cultivate experienced leaders from within a few years down the line. When this talent deficit emerges, organizations are often forced to resort to poaching experienced professionals from competitors, a strategy that is typically far more costly due to higher salary demands, signing bonuses, and recruitment fees. Moreover, external hires often take considerably longer to adapt to a new company’s internal systems, processes, and unique culture, leading to productivity lags and potential cultural friction.
LaMoreaux firmly believes that HR leaders have a crucial responsibility to advocate for entry-level hires, making a compelling business case that transcends immediate cost-cutting imperatives. "Entry-level hires—it is your responsibility to make the case for that," she urged. "Build the business case now; even though it may not seem so obvious to your leaders, because AI is going to make your job easier three years from now." Her argument hinges on the idea that investing in young talent now, equipping them with AI-centric skills, will ultimately make the entire workforce more efficient and effective in the future.
IBM’s CEO, Arvind Krishna, has evidently internalized and supported LaMoreaux’s plea, publicly rejecting the notion that AI must inevitably lead to fewer opportunities for new graduates. In an interview with CNN in October, Krishna stated, "People are talking about either layoffs or freezing hiring, but I actually want to say that we are the opposite. I expect we are probably going to hire more people out of college over the next 12 months than we have in the past few years, so you’re going to see that." This statement reinforced IBM’s commitment to nurturing a new generation of talent.
However, the narrative surrounding IBM’s workforce strategy contains a notable nuance. Just a week after Krishna’s optimistic comments, IBM announced plans to cut thousands of workers by the end of the year, as part of a strategic realignment towards high-growth software and AI areas. A company spokesperson clarified to Fortune at the time that this round of layoffs would impact a "relatively low single-digit percentage" of IBM’s global workforce. Importantly, when combined with the planned influx of new hires, the company projected its U.S. headcount to remain "roughly flat." This indicates that IBM’s strategy is not simply about expansion, but a significant reallocation of talent, shedding roles in areas becoming obsolete while aggressively investing in new capabilities crucial for its future, particularly those leveraging AI. This strategic pivot aims to reshape the company’s skill profile, ensuring it remains competitive and innovative in a rapidly changing technological landscape.
IBM is not an isolated case in recognizing the unique potential of younger workers to accelerate AI adoption. Other prominent tech companies are also rethinking their talent pipelines and actively embracing Gen Z’s innate digital fluency. Melanie Rosenwasser, Chief People Officer at Dropbox, offers a vivid analogy to describe the advanced AI skills of younger generations compared to their older counterparts. "It’s like they’re biking in the Tour de France and the rest of us still have training wheels," Rosenwasser told Bloomberg, emphasizing, "Honestly, that’s how much they’re lapping us in proficiency." Capitalizing on this inherent AI fluency, the file-sharing company is set to expand its internship and new graduate programs by 25%. This move reflects a strategic understanding that Gen Z isn’t just adapting to AI; they are often natively proficient, having grown up in an AI-permeated world, making them natural innovators in this space.
Similarly, Ravi Kumar S, CEO of the IT firm Cognizant, articulated a bullish view on Gen Z last year, leading his company to create more entry-level jobs. Kumar envisions a future where traditional corporate structures, often depicted as a pyramid with a broad base of school graduates, will transform. "So many companies have a pyramid with the bottom where school graduates are. That pyramid is going to be broader and shorter, and the path to expertise is going to be faster," he explained to Fortune. This vision suggests a more agile career progression, where young professionals, empowered by AI tools, can achieve higher levels of expertise more quickly. He underscored this commitment by stating, "This year, we are hiring more school graduates than ever before. I can take a school graduate and give them the tooling so they can actually punch above their weight. AI is an amplifier of human potential. It’s not a displacement strategy."
These examples from IBM, Dropbox, and Cognizant collectively suggest a growing recognition among forward-thinking tech leaders that AI, rather than being solely a job destroyer, can be a powerful amplifier of human potential, especially for those entering the workforce today. By proactively integrating AI literacy into job roles and investing in early-career talent, these companies are not only addressing the immediate challenges of a tight job market for Gen Z but are also strategically positioning themselves for long-term innovation and growth. The evolving landscape suggests that the future of work will be defined not by humans competing against AI, but by humans collaborating with AI, with Gen Z poised to lead this transformative partnership. This shift in perspective could redefine talent acquisition strategies across industries, emphasizing skill development and adaptability over traditional role definitions, and ultimately forging a more resilient and AI-integrated workforce for decades to come.