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BUSINESS · MAY 19, 2026

Executives Warn AI Overreliance Threatens Gen Z Professional Development

Business leaders and researchers warn that AI automation is eroding entry-level job opportunities and preventing Gen Z workers from developing foundational professional skills.

The integration of artificial intelligence into the professional workspace is creating a tension between corporate productivity and the development of early-career talent. At the Fortune Workplace Innovation Summit in Atlanta, John Santora, CEO of WeWork, stated that entry-level positions are under significant pressure. He argued that senior leaders must proactively mentor young talent because AI cannot replace the empathy and leadership skills necessary to run a company.

Data from a GoTo and Workplace Intelligence report reveals that 62% of Gen Z workers admit to over-relying on AI, with 40% stating they cannot function without the technology. Rich Veldran, CEO of GoTo, warned that this reliance may prevent young workers from learning essential skills, noting that the loss of foundational tasks removes the rite of passage that builds intuition and critical thinking. This shift aligns with a decline in junior job postings on Indeed and increased unemployment for recent graduates.

To counter these trends, firms are adjusting their training models. Ernst & Young and KPMG are experimenting with AI-driven simulations to replace traditional on-the-job training, while Microsoft is utilizing multi-generational teams to ensure junior staff receive human mentorship. Upwork CEO Hayden Brown noted that while some companies use AI to justify workforce reductions, freelancers are often more motivated to upskill in AI than in-house employees.


Reported across 4 outlets
Actors
Microsoft CorporationErnst & YoungRich VeldranJohn ChambersHayden Brown

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