Why Gen Z's AI skillset isn't translating to the workplace

• What's at Stake: Misaligned AI skills could slow innovation and waste AI investments.
• Supporting Data: 26% of employers report entry-level hires fall short on AI skills.
• Forward Look: Expect onboarding to shift toward continuous micro-learning and responsible AI governance.
  Source: Bullets generated by AI with editorial review

As the most tech-savvy generation, Gen Z is no stranger to AI — yet they're struggling to build the skills needed to grow and advance in their careers. A new approach to training and development from leaders can help.

Twenty-six percent of employers say entry-level hires aren't meeting their expectations when it comes to AI, according to a recent survey performed by Arkansas State University. Eighteen percent of employers even say they've rejected Gen Z candidates due to missing AI-related skills. 

"Artificial intelligence is no longer something extra," says Dr. Pankaj Nagpa, assistant professor of information systems and business analytics at Arkansas State University. "AI is becoming a mandatory skill for entry-level positions [and there is currently] a difference between what students do with AI and what organizations do with it." 

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Organizations expect familiarity with specific, embedded AI tools and systems that streamline defined business processes. Using AI in the workplace also raises questions of legality, privacy and decision-making that differ sharply from the experimental ways students encounter AI in educational settings. That's why companies spend so much time teaching employees how to exercise judgment, Nagpa says — when to trust AI and how to apply it appropriately.

In their daily life, Gen Z has become comfortable with widely accessible generative AI tools such as ChatGPT, Claude and Gemini, Nagpa says. But when it comes to career readiness, educational institutions have only recently begun building formal AI programs through new courses and majors. As a result, much of students' AI learning is informal and self-directed — a disconnect that can work against young talent during the job hunt.

"We are moving into an era when recruitment questions will be less like, 'Do you know about AI?' and more likely to be, 'How do you make effective use of AI?'" Nagpa says. "As recruiters begin to assess candidates, onboarding programs will become more rigorous and focused on responsible and efficient use of the technology."

Rethink AI upskilling and reskilling strategies

On top of the pre-existing skills gap in incoming talent, AI advancements are happening constantly. For leadership, this means that AI reskilling and upskilling efforts aren't just necessary as they recruit Gen Z, they need to be ongoing rather than one-off training sessions that may have worked with other skills gaps. Nagpa suggests firms integrate learning into their processes and implement strategies like micro-learning, which delivers educational content in short, focused bursts (typically under 10 minutes) that are designed for immediate application, high employee engagement and better retention. The companies that excel will be those that regard AI training as an everyday process, Nagpa says. 

Read more: What becoming 'AI Numb' means for workforce change

"Failure to bridge this gap might lead to a chasm between promising talent and what goes on when companies deploy AI in their operations," he says. "This can lead to misalignment in practice and limit the pace of innovation while increasing the need for additional training to realize the full benefits of the investment made in AI." 

Despite the need to rethink their training and development strategy, Gen Z remains the most promising talent asset when it comes to ensuring the overall success of progressive technology in the workplace.

"Gen Z sees artificial intelligence not as a threat but rather as an opportunity," Nagpa says. "The only things required to take Gen Z from mere users to experts are structure and proper training."