Artificial Intelligence is transforming the way UK organisations recruit, develop, and lead. Our 2025 report, “Preparing for an AI-driven workplace: the impact on early talent in the workforce”, explores the dual challenge and opportunity presented by rapid AI adoption, on both organisations leveraging the best skills and talent and leadership succession planning, as well as for graduates, Gen Z professionals breaking into the workforce.
Grayce recently conducted research to explore the impact of AI on early talent in the workforce. The study surveyed 250 senior leaders with hiring responsibility or oversight from large UK businesses (250+ employees) across multiple sectors. In addition, over 1,000 UK adults aged 18–25 were surveyed to capture Gen Z’s experiences and perceptions of AI’s influence on their careers. This report delves into the findings, uncovering how AI is shaping hiring strategies, future leadership development, and the expectations of emerging talent.
Over half of UK business leaders fear that AI may reduce opportunities for young talent. In the past year, 21% of large organisations have decreased graduate hiring, with 2% stopping altogether. Yet, 57% still expect to increase graduate intake in the future, reflecting a complex tension between automation and the value of early talent.
Nearly two-thirds (59%) of leaders are investing in AI upskilling to future-proof their teams. 63% now see AI literacy as a must-have when hiring new talent. Both technical and leadership skills are in demand.
Data analysis, research, customer service, finance, and marketing are among the roles most vulnerable to AI automation. Organisations are rethinking job design and the skills needed for success.
Over half of Gen Z graduates expect AI to reduce job opportunities in the next decade. 68% want more AI training on how to use AI in the workplace to future-proof their careers. They see AI and digital skills as the most important to thrive in the future, followed by problem-solving and adaptability, and creativity and innovation.
56% of leaders believe AI could or will reduce opportunities for junior talent to progress into leadership roles. Only 39% are very confident in their organisation’s succession pipeline.
While all sectors are grappling with the impact of AI on talent and leadership, there are pronounced differences in their approaches. Finance leads in AI adoption and digital skills prioritisation, but faces acute concerns about AI’s effect on graduate opportunities and future leadership. The public sector and legal sector, though both more cautious than finance, are far from alike: the public sector places the least emphasis on AI skills and has the lowest confidence in its leadership pipeline. This divide underscores the need for sector-specific strategies as organisations navigate the challenges and opportunities of AI-driven transformation.
32% of leaders worry that fewer graduate opportunities will harm company culture and innovation. Human qualities – adaptability, creativity, and critical thinking – remain essential, even as AI reshapes roles.
Download the full report now and discover how your organisation can harness AI while empowering the next generation of talent.
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