As artificial intelligence continues to disrupt the workforce, its influence on career decision-making is becoming increasingly apparent, particularly among younger generations entering the job market.

According to the 2025 Early Careers Survey by Prospects Luminate, 10 per cent of UK students and graduates have already changed their career plans in response to AI developments, highlighting the growing impact of automation on career trajectories.

The annual survey, based on responses from over 4,000 users of Prospects.ac.uk, reveals a marked shift in how students and early-career professionals perceive their employment prospects, with AI emerging as a major driver of uncertainty, but also opportunity.

While the cost of living remains a persistent issue, this year it slipped to third place among the biggest challenges faced by respondents. Topping the list was “keeping motivated”, followed closely by “balancing commitments”. Motivation had last taken the lead in 2022, during the COVID-19 pandemic, suggesting a return of widespread uncertainty as students navigate a volatile job market.

Women were more likely than men to report difficulties with motivation and mental health, and 54 per cent of undergraduates specifically cited financial difficulties as a pressing concern.

Interestingly, 53 per cent of those planning to enter the workforce cited money as a major challenge, compared to 41 per cent of those planning further study. Job-seekers were also significantly more likely to report feeling pessimistic about their career prospects.

AI as a tool and a threat

The survey uncovered widespread use of generative AI tools such as ChatGPT and Microsoft Copilot during the job application process. Some 39 per cent of applicants used AI to edit CVs and cover letters, while 30 per cent generated these documents from scratch using the technology. Others used AI to practise interview questions (29 per cent) or to answer application form questions (23 per cent).

Despite the prevalence of AI, traditional sources of career guidance remain more valued. Industry professionals, teachers, and careers advisers were still regarded as the most helpful sources of information, though AI tools were deemed “very” or “fairly” helpful by 84 per cent of users.

Notably, the use of AI also correlated with job search intensity. Respondents who submitted a higher number of applications were more likely to use AI tools, highlighting their role in streamlining the application process.

Career uncertainty on the rise

Only 58 per cent of respondents said they felt certain about their career plans, a dip from previous years. Among career changers, this figure dropped to just 39 per cent. Meanwhile, 21 per cent of all respondents expressed negative views about their career prospects.

The availability of jobs, the cost-of-living crisis, and job automation were the top factors influencing pessimism. Those who changed career plans due to AI were significantly more likely to feel uncertain or negative about their future.

Fields like graphic design, translation, and creative arts were frequently cited as areas where automation is raising concerns. However, some respondents also found new pathways through AI, citing access to better career information and emerging roles in cybersecurity, digital forensics, and multilingual legal services.

Graduate retention

A significant proportion of recent graduates are reconsidering their current roles. This year, 43 per cent said they plan to leave their employer, up from 39 per cent in 2024. The majority cited the desire to pursue a different career path, achieve career progression, or earn a higher salary.

Flexible work arrangements appear to influence loyalty. Those in hybrid roles were less likely to leave compared to those working fully on-site. Entry-level staff – who often lack access to remote work – were the most likely to plan a move.

SMEs attract the most interest

When asked about their preferred employer size, 75 per cent of respondents said they favoured small or medium-sized enterprises (SMEs). Medium-sized companies were viewed as large enough to offer progression but small enough to maintain a personal work culture.

Large organisations appealed to those seeking structured training and benefits, while smaller firms were appreciated for their close-knit environments.

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