The rapid rise of artificial intelligence is leaving young workers struggling to adapt in today’s workplace

As artificial intelligence reshapes the modern workplace, many young workers say they are struggling to keep up with progress and are therefore having difficulty finding jobs.

Recently, the labor market has been slow to add workers, especially recent college graduates. As of June 2025, 4.8% of recent college graduates were unemployed, compared to about 4% of all workers, according to the latest report from the Federal Reserve Bank of New York.

Many economists say tariffs are partly to blame, but an important factor, which has been brewing for several years, is the increasing use of artificial intelligence in the workforce. These tools have increasingly influenced early-career administrative employees, such as software developers and accountants.

As technology and artificial intelligence advance in offices, seven in 10 employees feel unprepared for today’s workforce, according to a recent study by Instructure, maker of Canvas, an online learning management system. As for younger workers, the situation is even worse, with 87% of Generation Z, born between 1997 and 2012, reporting that they feel unprepared.

Investopedia spoke with Ryan Lufkin, Vice President of Global Academic Strategy at Instructure, about the future of the workforce incorporating AI and how young workers can differentiate themselves in the evolving job market. This interview has been edited for brevity and clarity.

INVESTOPEDIA: Many workers in the Instructure survey said they feel unprepared for today’s workforce. What factors make them feel this way?

Ryan Lufkin: Part of this is because the acceleration of artificial intelligence and other emerging technologies has grown so rapidly over the past three years, and universities are trying to evolve to support that. What we’re seeing is this disconnect between employers and educational institutions in terms of the skills they need.

We’re kind of moving beyond just a basic set of skills, and now we’re focusing more on developing a growth mindset for these students to be lifelong learners, because we know they’re going to stay in their jobs for less time.

Our survey found that most of them tend to change careers every two or three years…so they need to reskill and upskill as they change careers. We need to make sure they have a growth mindset. Failure is part of learning, and being open to change – these are the things that will make them more successful in today’s job market.

Investopedia: Although Gen Z workers and students grew up with cutting-edge technology, this generation was most likely to say they feel woefully unprepared for the workforce and are overwhelmed by technological changes. What creates this gap between their education and entering the labor market?

Lufkin: This rapid change [in technology] It has created some contradictions in how we deal with technologies. Many of them probably went to high school and college at a time when they were told not to use AI. They are told that AI cheats, yet they move into the workspace, receiving mixed messages from employers about how and how much AI is being used.

We have to figure that out, and a lot of that is us bringing educators and employers together to make sure that we have more consistent messaging for these students, making sure that they’re prepared with the skills that they need, with the growth mindset to actually be effective, and then bringing that knowledge into the organization so they can be even more effective.

Investopedia: Reports have shown that recent college graduates are having difficulty finding work after graduation. What factors are present in today’s workforce that cause this problem?

Lufkin: Traditionally, college programs, because of the accreditation process related to degree programs, are a bit slow to develop, because it takes a long time to get accredited for these programs. So what we’ve seen is institutions offering a lot more non-degree programs, more degree-type programs, and those ideas that students can use.

We talk a lot about the ROI crisis that universities experienced previously. Is it worth the cost of getting a degree? The data shows that this is exactly the case. You’ll make more money over the course of your life, but when those programs don’t necessarily align with jobs, it’s a challenge.

The other thing is that some of the jobs that were entry-level jobs for students are now automated, not fully automated, but enhanced by artificial intelligence. So, instead of hiring six interns, maybe they just hire one intern who runs those tasks using AI. This creates a new gap that we did not expect.

Investopedia: What can recent college grads and young workers do to stand out and become indispensable as AI changes the workplace?

Lufkin: One of the most important things is getting a preliminary degree, which opens a lot of doors and provides additional paths. But that desire to be a lifelong learner and have that growth mindset is so important. By realizing that throughout your career, you can guide your way through those non-degree programs or credential programs.

If you started your career in marketing…but want to do more of the analytical side, you can get a degree [to get into] Data-driven marketing, things like that. The idea that you don’t have to know exactly where you want to go after graduation, but having a basic idea builds that foundation.

Then, when you approach it with a lifelong learning mindset, you’ll actually be able to scale up and rescale throughout your journey. There has never been more opportunity for educational reorientation than we have now. We’ve seen tremendous growth in non-university programs post-coronavirus, and these are universities that are really trying to meet companies where they are and shift that ability for students to build the skills they need for different programs.

Investopedia: What advice do you have for workers who fear that artificial intelligence or other technological advances will put them out of work?

Lufkin: There have been a lot of stories about AI replacing humans, and even some prominent technology leaders are claiming that AI is replacing humans.

But I think, fundamentally, they’re overestimating the power of AI. AI is a great tool to scale and support creativity. But what we’re seeing across the board is that the human skills of communication, connection, and creativity are actually the new focus for us as humans, and we’re using AI to automate some of the most tedious tasks.

I really encourage people to look at these tools as tools that support us and help us a lot in collaboration. Human-AI collaboration is actually what the future looks like.