AI hype vs. human potential: why cutting early careers is a strategic mistake
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AI HYPE VS. HUMAN POTENTIAL: WHY CUTTING EARLY CAREERS IS A STRATEGIC MISTAKE
The rise of Generative AI has triggered a wave of reactionary decision-making across enterprise organisations. Recent headlines have warned that automation is leading some to slash entry-level roles in pursuit of short-term efficiency. As is often the case, there is more to it than AI simply taking jobs, but there is still a concern that needs addressing.
In this blog we’ll look at the dangers of stripping your early talent pipeline to chase AI gains, and what leaders should do instead. Because chasing small-term gains is not innovation, it’s erosion.
If you're in the C-suite, now is the time to pause, assess and lead with clarity. The decisions you make today will define whether your organisation thrives or stagnates in the AI era.
The illusion of efficiency
Since the launch of ChatGPT, entry-level job openings in the UK have dropped by nearly a third, as pointed out in our recent LinkedIn newsletter. Globally, AI leaders warn that up to 50% of office jobs could be automated within five years. But these figures don’t tell the full story.
As James Milligan, Global Head of Technology, Engineering and Contracting at Hays, puts it: “What we’re seeing isn’t a collapse in demand, but a transformation in how and where graduates are being hired.” The decline in early-career roles isn’t solely driven by AI, it’s also shaped by economic pressures and shifting hiring preferences.
With economic turmoil impacting many organisations in recent years, it’s understandable that some may see AI and automation tools as an easy way to get back on track. However, cutting junior roles before fully understanding the technology’s capabilities is a strategic misstep.
The risk of a hollow organisation
Early-career roles aren’t just about task execution, they’re about building future capability. Junior employees bring fresh thinking, digital fluency and long-term potential. Remove them, and you risk:
- Creating a knowledge vacuum: Junior staff often handle foundational tasks that build institutional memory. Without them, you lose the ability to transfer knowledge upward and across teams. This weakens continuity and increases reliance on external hires who lack context.
- Weakening your talent pipeline: Entry-level roles are the launchpad for future leaders. If you eliminate these roles, you’ll face a bottleneck in two to three years when mid-level talent is needed. Succession planning becomes reactive, expensive and risky.
- Stalling innovation: Gen Z are digital natives. They’re already using AI tools and can help drive adoption from the ground up. Cutting them out of the equation means losing the very people who could help you integrate AI meaningfully and responsibly.
Action for leaders: Audit your early-career roles not for redundancy, but for reinvention. Identify where AI can support, not replace, junior talent. Build hybrid workflows that combine automation with human oversight, and ensure mentorship structures are in place to accelerate development.
Lead with strategy, not hype
AI is evolving but it hasn’t yet delivered the large-scale transformation many anticipated. According to James Walsh, Business Director for Cyber, Cloud and Data at Hays UK&I: “Organisations are assessing whether AI will actually deliver, and not many are confident it can do more than enhance, at this moment in time.”
That’s why the smartest leaders are resisting the hype and investing in structured AI training for early talent. This approach doesn’t just retain ambitious Gen Z professionals, it builds a workforce equipped to work with AI, not be replaced by it.
Amanda Whicher, Hays UK&I Technology Director added: “The hype around AI is much bigger than the reality of what we're actually seeing across organisations.” Cutting entry-level roles now is a knee-jerk reaction to a technology that’s still maturing.
Medium-term thinking is your competitive advantage
Ben Carter, Director of Emerging Talent Solutions at Hays UK&I, puts it plainly: “If AI is impacting early careers, I would say those companies are lacking medium-term thinking. They will choke an ecosystem when they need mid-level roles if they automate the early career roles.”
Here’s what medium-term thinking looks like in practice:
- Embed AI learning across disciplines: Don’t silo AI knowledge in IT or data teams. Make AI literacy a core part of onboarding, training and leadership development. This builds resilience and cross-functional capability.
- Invest in upskilling at every career stage: AI adoption isn’t a one-time event, it’s a continuous evolution. Equip junior talent with foundational AI skills, but also ensure senior leaders are fluent in its strategic implications.
- Empower early talent to lead AI adoption: Gen Z are already experimenting with AI tools. Give them space to innovate, test and share learnings. Create reverse mentoring programs where younger employees teach senior staff how to use AI effectively.
Action for leaders: Build a three-year talent roadmap that aligns AI adoption with workforce development. Identify which roles will evolve, which will be created and how early-career talent can be nurtured to fill future gaps.
Final thought: Build, don't burn
AI is a powerful tool but it’s not a replacement for human potential. The C-suite must resist the temptation to chase short-term savings at the cost of long-term capability.
Gen Z isn’t just ready to work with AI, they’re ready to lead with it. Your job is to make sure they’re still in the room.