Artificial Intelligence is transforming how organizations recruit, develop, and lead. Our latest 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 – both for organizations seeking top skills and talent and for leadership succession planning, as well as for graduates and Gen Z professionals entering the workforce.
Grayce recently conducted research to examine AI’s impact on early talent. The study surveyed 250 U.K. senior leaders with hiring responsibility or oversight from large businesses (250+ employees) across multiple sectors. In addition, more than 1,000 U.K. adults ages 18–25 were surveyed to capture Gen Z’s experiences and perceptions of AI’s influence on their careers. This report dives into the findings, revealing how AI is shaping hiring strategies, future leadership development, and the expectations of emerging talent.
Over half of business leaders fear AI may reduce opportunities for young talent. In the past year, 21% of large organizations 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. Organizations 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 training on how to use AI in the workplace to future-proof their careers. They see AI and digital skills as most important to thrive in the future, followed by problem-solving, adaptability, creativity, and innovation.
56% of leaders believe AI could reduce opportunities for junior talent to progress into leadership roles. Only 39% are very confident in their organization’s succession pipeline.
While all sectors are grappling with AI’s impact on talent and leadership, approaches vary widely. Finance leads in AI adoption and digital skills prioritization but faces acute concerns about graduate opportunities and future leadership. The public sector and legal sector, though both more cautious than finance, differ significantly: 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 organizations navigate 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 organization can harness AI while empowering the next generation of talent.
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