The rise of AI has sparked fears among graduates, but is it all doom and gloom? The answer might surprise you.
Divine Jacob, a computer science graduate from London, knows the struggle of job hunting all too well. With 50 to 100 applications sent each month, he believes AI has made the process even more challenging, a sentiment echoed by many young job seekers.
But here's the twist: while AI is undoubtedly transforming the job market, its impact is far from straightforward. McKinsey, a renowned consultancy firm, reveals an intriguing trend. Initially, companies focused on replacing staff with AI, but they're now recognizing the importance of effective people management alongside these technological advancements.
And this is where it gets interesting: AI experts argue that it's not all bad news. They believe that graduates, being 'AI natives', possess skills that could give them an edge in the evolving job market. This controversial perspective challenges the common narrative.
Youth unemployment is soaring, reaching 16% for those aged 16 to 25. Jacob highlights the impersonal nature of AI-driven application processes, which often lack the human connection that job seekers crave. As a result, many feel discouraged by automated screening.
However, innovative platforms like Riser are stepping up. Founded by Suze Bannister, Riser allows applicants to upload a one-minute video, showcasing their skills and personality beyond what an algorithm can capture. This approach aims to bridge the gap between AI and human connection.
The impact of AI on job postings is significant, especially in Jacob's dream industry. McKinsey's analysis reveals a 38% drop in job ads in sectors heavily exposed to AI and LLMs. Roles in software development, IT, data, media, and more are experiencing the brunt of this change.
Graduates face a triple challenge: a sluggish job market, fewer entry-level positions, and reduced demand for lower-skilled jobs. Unemployment rates in the final quarter of 2025 reflect this, with young people bearing the brunt.
But there's a silver lining. Tera Allas from McKinsey notes that the AI job landscape is ever-changing. Surprisingly, the jobs with the most AI exposure are now booming, and the demand for graduates with AI skills and people management abilities is on the rise.
Start-ups like BossUp AI are seizing this opportunity. Rahan Arif's company is creating a standard to assess 'AI readiness' among graduates. Their survey reveals that while many students feel their desired roles are disappearing, they also acknowledge the potential for AI to enhance their job prospects.
For graduates like Jacob, the journey is tough but transformative. After a long search, he secured a job and believes the experience has made him more resilient. He predicts an improved workforce, one that will thrive once past the AI hurdle.
So, is AI a friend or foe to graduates? The debate is open, and the future is yet to be written. What's your take on this evolving story? Share your thoughts and experiences in the comments below!
