Artificial intelligence (AI) is rapidly reshaping the workplace, streamlining tasks and boosting productivity – but it’s also creating new challenges, especially for people just beginning their careers, according to Deloitte’s 2025 Global Human Capital Trends report.

Entry-level roles, long seen as important stepping stones for gaining experience and developing professional judgement, are being hollowed out by AI. This shift raises important questions about how we prepare and support people in a labour market where a more traditional path to experience is no longer guaranteed.

Nearly 13,000 business and human resources leaders across multiple industries and sectors globally were surveyed for this year’s Global Human Capital Trends report.

Two-thirds (66%) of managers and executives said that most recent hires were not fully prepared for work, with a lack of experience cited as their most common failing.

AI is shrinking traditional entry-level roles, making it harder for workers to gain necessary hands-on experience. To close this experience gap, businesses need to shift from rigid experience requirements to skills- and potential-based hiring.

The report found 73% of executives and 72% of workers also felt organisations should do more to give existing workers more opportunities to gain experience. Nearly three-quarters (74%) of surveyed workers, managers and executives said it is very, or of critical importance to prioritise human capabilities.

Leaders need to rethink how they develop talent - not just source it - and re-evaluate how AI, automation, and restructured roles accelerate skill-building, not replace human judgment.

An employee value proposition in the AI era

Meanwhile, as workers increasingly use AI, it’s changing their experience at work in other unexpected and subtle ways.

Human/AI collaboration is an increasingly important part of the modern “employee value proposition” (EVP) - the reasons people choose to work for and stay at a company. An updated EVP can help organisations better support their employees and adapt to these changes. Additionally, leaders who communicate AI’s role in job transformation, career growth, and work-life balance can help create workforce trust.

The Human Capital Trends Report found more than half (52%) of leaders view the potential value of deeper human and machine collaboration as very or critically important. Over 70% of managers and workers are also more likely to join and stay with an organisation if its employee value proposition helps them thrive in an AI-driven world.

The role of middle managers through the AI future

This year’s report also highlighted the evolving role of middle managers as workers navigate rapid change and increasing AI adoption.

Organisations benefit from having people dedicated to developing their teams, however many managers find themselves having to focus more on administrative tasks. AI can help managers better balance those activities so they can become more people-focused and agile.

Organisations that do successfully reimagine the role of the manager will likely be better positioned to navigate an increasingly AI-powered future.

To view the full report, visit Deloitte's 2025 Global Human Capital Trends page.

Members of Deloitte New Zealand’s Human Capital team will be diving into these issues at two events during Techweek 2025:

• Deloitte presents: Rewiring work – Insights from Deloitte’s 2025 Human Capital Trends for a tech-driven future. Through practical discussion and expert commentary Deloitte’s team will explore the structures, leadership mindsets, and practices that can unlock potential in an era of rapid change. Featuring perspectives from Deloitte leaders, this session is ideal for anyone navigating workforce transformation.
• Deloitte presents: Own your path; intentional career planning. This interactive session introduces practical tools and frameworks to support more intentional career development planning.

Learn more about Techweek here and Deloitte New Zealand’s Human Capital practice here.