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Guest blog: Chris Rea, Prospects at Jisc, discusses their new report showing a disconnect between young people's perceptions and AI's real impact on work and jobs.

AI is already having a significant impact on how young people approach their careers. But while fears about AI-driven job losses are influencing decision-making, the reality inside UK workplaces is far more nuanced.

Our latest report combines student and graduate insight from Prospects at Jisc with views from employer members of the Institute of Student Employers (ISE) to reveal a growing disconnect between how young people perceive AI is impacting jobs and work and the reality of how employers are adopting it.

Perception gap

AI and Early Careers found that more than one in ten (13%) of students and early career professionals have already changed their career plans because of AI concerns (up from 10% last year), with a further third considering doing so. Among those who altered their direction, nearly three quarters cited fears that their chosen role could eventually be replaced.

However, employers tell a very different story. While organisations are increasingly embedding AI into their operations, most are not reducing entry-level recruitment because of automation. At the moment, hiring decisions are mainly driven by external market uncertainty, strategic restructuring and budget pressures.

In fact, more than half of employers surveyed expect entry-level hiring to remain stable over the next three years, while over a quarter anticipate growth. Notably, none predicted large-scale reductions in hiring driven directly by AI.

This perception gap matters and industry and educators have a critical role to play.

If left unchecked, it risks discouraging talented young people from entering sectors where the UK urgently needs digital capability, innovation and productivity growth. It is also deepening existing challenges around career confidence, motivation and preparedness.

The reality of roles reshaped rather than replaced

Our AI and Early Careers research points to a more evolutionary than revolutionary shift in the labour market.

AI is increasingly taking on routine and repetitive tasks, such as administrative work, basic research and first-draft content generation, freeing-up entry-level workers to focus on areas where human skills remain critical: judgement, communication, creativity and collaboration.

The future of work is unlikely to be defined by humans versus AI, but by humans working effectively alongside AI. Employers increasingly value adaptability, critical thinking and digital fluency as core employability skills.

This is especially true for entry-level roles, where AI is reshaping responsibilities but not removing the need for human potential, learning capacity and interpersonal capability.

AI confidence and capability

One of our report’s most interesting findings is that perceptions of the impact of AI vary significantly depending on access to relevant skills development, experience and support.

Respondents who felt equipped with AI knowledge or practical exposure through education or work were more likely to feel optimistic and curious about emerging opportunities. Those without that confidence reported far greater anxiety and uncertainty.

The divide was particularly pronounced among younger respondents and disabled participants, highlighting the risk that uneven access to AI literacy could widen existing inequalities in the labour market.

This points to a need for broader, inclusive AI capability and confidence building across education and employment pathways.

Technical skills alone will not be enough. Young people also need clear guidance about how AI is affecting specific industries, what new opportunities are emerging, and which human skills will become even more valuable in an AI-enabled economy.

Critical leadership role

Public narratives around AI often oscillate between hype and fear. Yet the evidence suggests that workplace transformation is currently more gradual, collaborative and human-centred than many young people assume. In fact, more than half of employers indicated that AI was changing roles slower than they expected

AI and Early Careers reinforces the continued importance of transparency, clear guidance and support around early career opportunities and skills development. For employers this means communicating responsibly about AI’s impact on jobs and careers.

Student respondents highlighted their need for up-to-date information on labour market impact as well as practical skills training and guidance on ethical use. Graduates already highlighted similar needs alongside job security reassurance.

Done well, this can help convert anxiety into ambition.

The UK has an opportunity to position itself as a leader not only in AI innovation, but in AI workforce transition, ensuring technology adoption strengthens opportunity rather than undermines confidence.

Closing the perception gap between fear and reality will be essential to achieving that goal.

Guest blog by Chris Rea, graduate careers expert for Prospects at Jisc.