However, a new report from the Graduate Management Admission Council is throwing a wrench into that optimism.

One-third of employers say they are replacing entry-level jobs with AI, according to GMAC’s latest Corporate Recruiters survey, which polled more than 600 recruiters worldwide. More than half of the respondents recruit for Fortune 100 or Fortune 500 companies.

It’s an indication that Gen Z’s fears are becoming reality: the first ring of the career ladder is genuinely getting harder to reach.

Technology roles are most exposed, with 40% of employers in the industry saying AI is replacing entry-level positions, closely followed by manufacturing.

Yet Sabrina White, senior vice president of school & industry engagement at GMAC, said Gen Z shouldn’t interpret the findings as a reason to avoid AI. Instead, she argued, the report underscores the importance of learning to use the technology to create business value.