As organizations rush to adopt artificial intelligence, many are abandoning their support of high-potential Gen Z workers. But when you fail to invest in young professionals, you’re missing fresh perspectives that will drive results now and long into the future.

Entry-level jobs are disappearing, which means fewer spots for young professionals. Since 2023, entry-level job postings in the U.S. have dropped 35%, according to labor research firm Revelio Labs. Two-fifths of global leaders reduced or cut entry-level roles last year due to AI efficiencies. Another 43% plan to do the same this year.

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The logic is straightforward: In a tight economy, why pay for entry-level talent when technology can handle routine tasks faster and cheaper? Why invest in an unknown new hire, when you can invest in AI technology to help your experienced professionals be twice as productive?

It makes sense to protect your current employees and help them be more efficient. Your balance sheet improves, as does your quarterly report to your shareholders, your board, and your investors. But this is 90-day thinking, when you need a five- or 10-year strategy.

The business landscape is changing so fast that continuing the old way of thinking — even if you can do it twice as quickly — is business suicide.

Young employees are fearless and creative

To survive in this chaotic new economy, you need people who can see a problem from different perspectives, with no preconceived notions of how that problem should be solved. You need people who are comfortable with technology and able to use a variety of AI tools to achieve their goals.

In organizations I’ve led, the youngest members of our teams have consistently been the most creative. They work for excellence, yet they have no fear when it comes to tough tasks. They aren’t constrained by “that’s how we’ve always done it” thinking. The combination of ambition, fearlessness and perspective leads to genuine innovation.

For example, one of the companies I’ve invested in had a problem that several people had been working on for months. Their intern saw the issue, watched a few videos on YouTube, and even though she’s not a programmer, used Claude.ai to write a Python script to address the issue. She tested her program, and in less than a week, she had found a workable solution.

This young professional had no historical knowledge of the problem or what had been tried before. What she did have was an insatiable curiosity, a different perspective, and a familiarity with various AI tools that were available. The final ingredient was the company’s psychologically safe culture, which encouraged anyone with a good idea to come forward, try it, and test it.  

The real competitive advantage: Multigenerational teams

Here’s the catch: Creativity only translates to business results when it’s channeled and developed. A 20-year-old with a brilliant idea needs guidance from someone who understands the business implications. They need mentorship from someone who's navigated organizational politics, managed competing priorities, and learned what drives revenue.

The data backs this up. Deloitte found that 76% of Gen Z uses generative AI tools—the highest rate of any generation. This compares to 58% of Millennials, 36% of Gen Xers, and 20% of baby boomers. In addition, a Randstad survey reported that 78% of global workers learn soft skills from older colleagues. At the same time, 72% say they learn tech and AI skills from Gen Z and Millennials.

The companies that will win in an AI-powered economy aren’t the ones that cut junior talent. They’re the ones that build multigenerational teams — where Gen Z's creativity and AI fluency combines with experienced workers’ judgment and institutional knowledge.

How leaders should actually approach AI adoption

If you're going to adopt AI effectively, you need to think strategically about your workforce. Here’s what that means:

Hire for cross-discipline thinking. Leaders should be hiring less for skills and more for broad experience. The ideal candidate is someone who understands marketing a little bit, product development a little bit, coding a little bit. People who are curious and know how to use AI tools to accelerate their capabilities and knowledge are going to be the new superstars in business.

Give appropriate recognition and compensation for higher productivity.  Employees who master AI tools are going to be more productive than their peers. They’re going to accomplish more in less time. If a young person is achieving more, recognize their effort, so you don’t lose them to competitors.

Foster psychological safety so all voices are heard. Junior employees often have the best ideas about how to use AI because they're not constrained by “the way we've always done it.” But they won't speak up if they don't feel safe. Create an environment where a 24-year-old can challenge a 54-year-old's approach without fear of retaliation.

Provide actionable feedback and professional development. Junior employees need to understand not just what to do, but why it matters. Adjust roles so they are contributing in meaningful ways, not just checking AI outputs. Give them feedback and professional development opportunities to help them grow.

The strategic choice

I’ll leave you with one more fact: A Georgetown University study estimates that 18.4 million experienced workers will retire by 2032. But only 13.8 million younger workers are entering the workforce with similar qualifications. The gap between those two groups — 4.6 million people — is what Fast Company describes as a “demographic time bomb.” That means a lot of companies will be looking to fill crucial roles over the next few years.

Leaders who invest in Gen Z professionals today can take advantage of their AI fluency and relentless curiosity to drive innovation. The resulting multigenerational teams will amplify professional growth, engagement, and business objectives. These future-focused organizations will also have a robust talent pipeline when their competitors are scrambling to catch up.

Cutting entry-level jobs isn’t a sustainable workforce strategy. It’s a short-term decision with long-term consequences, because investing in young people is the only approach that wins over time. That’s why I'm spending more time on college campuses, looking for young people who will propel my businesses into the future.

About the Author

Donald Thompson is Managing Director of the Workplace Options Center for Organizational Effectiveness, host of the High Octane Leadership podcast, and author of The Employee Engagement Handbook.