AI's impact on early careers: new report from Prospects and ISE

Last year, our Early Careers Survey highlighted something important: AI isn’t just changing the recruitment process, it’s also impacting the career decisions of students and graduates. At that point, 1 in 10 respondents said they had already changed their career plans because of AI

Diving into this topic further, Prospects has partnered with the Institute of Student Employers (ISE) to produce a new report. This report brings together insights from more than 700 students and graduates, alongside input from 30 ISE employer members.

We’ll highlight some of the key findings and takeaways employers can apply to their recruitment strategy. If you need any support with your recruitment, get in touch.

The student and graduate perspective

AI is already influencing how students and graduates think about their futures:

• 13% of respondents have changed their career plans because of AI.
• A further 34% are considering changing their career path.
• 69% of those who changed plans said concerns about AI replacing their job was the top reason.
• Other respondents viewed it differently: 36% say learning new AI skills has reshaped their plans and 29% say it has opened up new opportunities.
• Curiosity (34%) and anxiety (27%) were the two most commonly expressed feelings in response to AI in their future career.
• Students identified practical skills and training and up-to-date information on AI trends and capabilities as the two key areas of support they need.
• Those in employment, highlighted training and upskilling, alongside job security and reassurance, as their main support needs.

The employer view

When we compare the student and graduate view with the employer insight, there are some clear differences between expectations and reality.

• 50% of employers expect only a few roles (1-10%) would be replaced over the next 3 years.
• A further 32% say they don't expect any roles to be replaced, but 23% were unsure – not providing a prediction.
• 50% describe AI's impact so far as small adjustments to tasks rather than formal job redesign.
• 43% report no changes to entry-level roles at all.
• 60% expect to review or potentially reshape entry-level roles in the next 1-2 years.

Additionally, the employer insights highlighted that:

• Generally entry level tasks will remain human-led, but employers did anticipate increasing collaboration between workers and AI tools.
• Human skills, such as critical thinking and judgement, communication and interpersonal skills are becoming more important.
• AI is more likely to augment roles rather than fully replace.

What can recruiters do about this?

A clear theme of the report is the disconnect between perception and reality. Many students and graduates are making career decisions based on fear of job loss, media narratives and limited visibility of how AI is actually used in organisations.

Meanwhile, employers are adopting AI cautiously, focusing on augmentation rather than replacing jobs and are still working out how roles will evolve.

Here's where to focus:

Close the perception gap with clear messaging

Candidates are filling in the gaps themselves, with a large percentage worried about the impact of AI. Employers have the opportunity to take control of the narrative by:

• Explaining how AI is used in their organisation and in specific roles.
• Being clear that most entry-level roles are being augmented, not replaced.
• Including examples of how roles and tasks are evolving.
• Providing a clearer picture of day-to-day work and workplace culture, including how teams actually interact with AI.

This is particularly important around creative roles and translation, where candidates may be actively reconsidering their career paths (see pages 12-14 for full analysis).

Make AI expectations visible early during your hiring approach

Many students and graduates are unsure how AI actually fits into the roles they’re considering. Without that clarity, it’s difficult for them to know what skills to build or whether a career path still feels viable.

Employers can help by making expectations more explicit:

• Reference how AI is used in job descriptions and on careers content.
• Frame key responsibilities to reflect where human judgement and oversight are required.
• Include AI literacy as a desirable or expected skill.
• Highlight how candidates might be expected to work alongside AI in practice.

Focus on other skills employers want as well

As some work tasks diminish due to AI becoming more embedded, employers are placing greater importance on skills like critical thinking, judgement, communication and interpersonal skills. Reflect this by:

• Highlighting these skills clearly in job descriptions.
• Designing tasks or questions that assess these skills during hiring.
• Reinforcing how these skills are used alongside AI in the role.
• Providing training opportunities to help students and graduates build confidence in these areas.

Balance reassurance with opportunity

Candidates are not all responding to AI in the same way, with some respondents finding that AI created new opportunities and the chance to develop new skills. Effective messaging should reflect both angles:

• Acknowledge concerns around job security.
• But at the same time, highlight where AI is creating new opportunities – this could be done in the hiring process, through to content that’s produced on careers pages and social media channels.

Signal how you support ongoing development

Feeling unprepared is a key driver of anxiety in the report. Additionally, those in employment highlighted training and upskilling as key. Employers can:

• Include learning opportunities in the job description (e.g. access to tools, internal training, mentorship, etc.).
• Offer support during the onboarding process.
• Make sure training and development opportunities are visible for employees.
• Set clear expectations around AI use through internal comms.

Work with universities and colleges to improve clarity and preparedness

The report highlights how students and graduates feel about how well their current education is preparing them for a future with AI. This creates an opportunity to work closely with education providers, helping students to better understand how roles are evolving and how their skills apply in an AI-augmented workplace. Employers can:

• Provide insights of how AI is used in specific roles or sectors.
• Contribute to career talks, content and skills workshops.
• Share up-to-date insights with career services.
• Overall, help students understand how their skills translate to the workplace.

For further insights, you can read the full report on Luminate. If you need any support applying these insights to your recruitment strategy, get in touch with the team today.

Thanks for reading the latest newsletter. If you have any thoughts or feedback on future topics we should cover, please get in touch. You can find out more about what we do and advertising your opportunities on the Prospects website.

Written by

Matthew West

Marketing communications executive

Prospects at Jisc