Source: Fortune.com
Summary
ServiceNow CEO Bill McDermott predicts that Gen Z college graduates may face up to 30% unemployment in the next couple of years due to AI automation. McDermott believes that AI agents will replace routine tasks typically done by entry and mid-level employees, making it challenging for young people to differentiate themselves in a corporate environment. According to the Federal Reserve Bank of New York, around 5.6% of recent U.S. college graduates are already unemployed, compared to 4.2% of the general population. Tech leaders, including Geoffrey Hinton and Sam Altman, have also warned about the impact of AI on job markets.
Our Reading
The numbers tell one story.
ServiceNow CEO Bill McDermott’s warning about Gen Z unemployment is not just a prediction, but a reflection of the current job market. With AI agents taking over routine tasks, entry-level jobs are becoming increasingly endangered. The fact that hiring for new graduates in the tech sector has fallen by over 50% since 2019 is a clear indication of this trend. As McDermott noted, “What’s happening now, for the non-differentiating roles, [is] so much of the work is going to be done by agents.”
McDermott’s statement translates to a familiar phrase: “We’re automating jobs, not creating new ones.”
Author: Evan Null
