1 in 6 organisations in the UK, or 432,000 companies, have started using at least one artificial intelligence tool for work, according to the government. The number of people working in AI-related roles has now passed 360,000.
This change is having an effect on graduate employment. Indeed reports that entry-level job postings have gone down by 33% in the past two and a half years, which would make this the toughest job market for graduates since 2018. Even the pandemic’s numbers were better. The use of AI for tasks such as data entry is a huge reason why.
David Morel, chief executive of Tiger Recruitment, says that AI does not remove all jobs but changes the type of skills needed. He says graduates could succeed if they adapt by learning AI-related skills, developing abilities that machines cannot replace and of course, understanding AI ethics.
What Skills Do Graduates Need Now?
David Morel suggests students should learn about coding languages, AI ethics and frameworks. He says new roles have appeared in areas such as AI product management, finance analysis and recruitment for AI-specialist tools. Many of these roles need knowledge that can be built through online courses or independent study.
He also referred to opportunities in small businesses, which make up 60% of the UK workforce. Many of these employers have not invested heavily in AI systems and still hire entry-level staff for work that machines might do elsewhere.
Human abilities such as empathy, creativity and critical thinking are still important and valuable. A lot of recent research shows that people who use AI heavily may perform worse in critical thinking tests than those who use it rarely. Morel advises graduates to keep practising these skills to stay competitive.
Getting the ethics when it comes to AI is also important, as employers want staff to be aware of privacy risks and bias in AI systems in order to also use these tools responsibly.
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How Are Graduates Reacting To AI In The Workplace?
Prospects Luminate’s Early Careers Survey 2025, run by Jisc, questioned over 4,000 students and graduates. It found that 11% had already changed career plans because of AI. 14% said automation made them feel pessimistic about their prospects, while 43% wanted to leave their current job.
Many respondents were worried that roles in creative sectors such as film, design and translation might go away or really decrease.
The Prospects survey found that 1/5 of respondents had used tools such as ChatGPT or Microsoft Copilot for careers advice, and 84% of these found it useful.
AI is being used to save time in applications, helping graduates apply for more roles. A quarter said they were applying to as many jobs as possible, with 27% sending over 50 applications. The Institute of Student Employers says the average graduate role now gets 140 applications, which is 59% more than last year.
Among graduates, 43% have used AI to edit a CV or cover letter, 35% have used it to write them from scratch, 29% to prepare for interviews and 26% to answer application form questions. Not as many have used AI for online tests or during interviews.
Can AI Really Help In Securing Interviews?
Some graduates report better results after using AI in job applications. Jodie Fodden, who has degrees in environmental management and studies from The Open University, said they were initially reluctant to use AI but began doing so after a year without interview offers.
Since then, Jodie has applied for 50 jobs in 2025 and secured three interviews. They feed their information, the job details, and company data into AI to draft statements, then edit for accuracy and personal style. They also use AI to prepare answers for interview questions and to design presentations.
Jodie’s most recent interview feedback was positive, with the role going to a candidate with more experience. They say AI helped them structure answers and present themselves more effectively.