The Future Workforce: Gen Z and HR Professionals Differ on Importance of AI Skills While 60% of Gen Z are taking charge of their futures through online courses, internships, and competitions as they believe outdated college curricula are the primary reason behind today's wide skill gap

The idea of machines working for humans once seemed like a distant reality. However, today, it no longer feels so far off. From creative tasks to labor-intensive work, Indian enterprises and government departments are racing to adopt artificial intelligence (AI), machine learning (ML) powered applications, tools, and robotics.

But amidst this transformation, a pressing question arises: are Indian students ready to embrace and thrive in this evolving tech work environment?

According to the Unstop Hiring Kart: Skills & AI Report 2024, a significant gap in job readiness among college graduates has been identified. This concern is echoed by both human resource (HR) professionals and Gen Z themselves. HR professionals report that 69 per cent of students are only somewhat prepared, while 23 per cent are not prepared at all, with eight per cent being considered well prepared. Gen Z's self-assessment aligns with these findings, as 53 per cent of them feel somewhat prepared, 22 per cent feel entirely unprepared, and only 25 per cent express confidence in their readiness for the workplace.

Are college curricula lagging behind?

Outdated college curricula have been cited as the primary reason behind this gap. These outdated programs leave fresh graduates scrambling to acquire the skills required in today's fast-paced, technology-driven workplace. Only 18 per cent of HR professionals believe that Gen Z's skillsets align with the industry's top requirements, such as technical or industry-specific skills, strategy and leadership, analytical skills, teamwork and collaboration, and expertise in data and AI.

Furthermore, 68 per cent of HR professionals highlight the lack of coordination between colleges and organizations as the main reason for this skill gap. This is compounded by a lack of mentorship, identified by 65 per cent of HR respondents, and the challenges posed by rapid technological advancements, as noted by 63 per cent.

The problem is particularly acute for graduates in Arts, Science, and Commerce, where 45 per cent report feeling unprepared for the workforce. Even among working professionals, 25 per cent feel inadequately prepared. The concern is widespread, with 93 per cent of HR professionals and 78 per cent of Gen Z believing that traditional degrees are becoming obsolete.

One respondent from Gen Z captured this frustration, "I need help with everything. I learned nothing about coding, even in B.Tech; the syllabus is more outdated than the iPhone 11. How will I clear the skill assessments?"

Future-ready skills

Despite these challenges, Gen Z recognizes the importance of acquiring future-ready skills. They emphasize the need for technical expertise, data and AI proficiency, and strong communication abilities as critical tools for career success. When asked about the skills necessary for their dream roles, the majority of Gen Z respondents highlighted technical or domain-specific skills as essential. A significant number also prioritized data and AI expertise, analytical skills, teamwork and collaboration, and leadership and strategy development.

Contrastingly, while 54 per cent of Gen Z considers data and AI among the most critical skills, only 16 per cent of HR professionals view it as a priority for the current job market.

This discrepancy underscores a potential gap between the evolving priorities of the younger workforce and the perceptions of HR professionals, emphasizing the need for better alignment to address future job demands.

Ankit Aggarwal, Founder and CEO of Unstop, reflects on this growing divide, stating, "The critical need for a paradigm shift in how we prepare for and evaluate the workplace of tomorrow is evident. Gen Z is pushing boundaries, embracing AI, and demanding meaningful skill development. For organizations, this is a wake-up call: adapt hiring strategies, foster continuous learning, and champion mentorship. Only by bridging the gap between skills and opportunities can we shape a workforce that thrives in an AI-driven world."

Un-schooling with independent learning

While 60 per cent of Gen Z are taking charge of their futures through online courses, internships, and competitions, they expect organizations to step up by providing role-specific training and continuous learning opportunities. Although 81 per cent of HR professionals report that their organizations are offering such resources, 19 per cent still lag in this critical area of investment.

As India transitions into a future dominated by AI and robotics, bridging this skill gap will require a collaborative effort between educational institutions, industry leaders, and the workforce.