On Tuesday, WeWork and Upwork Inc. (NASDAQ:UPWK) CEO said artificial intelligence (AI) is putting pressure on entry-level hiring for Gen Z workers, while companies increasingly shift toward freelance and AI-skilled labor.

AI Disrupts Entry-Level Hiring For Gen Z

Speaking at Fortune's Workplace Innovation Summit, WeWork CEO John Santora said entry-level workers are facing growing challenges as AI reshapes hiring needs across industries.

"There's no question that the entry-level hire is under pressure," Santora said.

He added that business leaders have a responsibility to train younger talent for future leadership roles.

Santora continued, "AI is not going to provide empathy and leadership and mentoring and all those skills that you need to lead a company for a company to be successful."

Upwork CEO Hayden Brown also acknowledged growing anxiety among workers but argued that some companies are overstating AI's impact on jobs.

"The hype is real," Brown said.

He added, "The fear-mongering is a real challenge because it does create a lot of this, not just uncertainty, but I think employees are really wondering what their place is."

Brown said some firms are "AI-washing" workforce reductions during a weak economic environment rather than cutting jobs solely because of automation.

Both CEO’s said the labor market is increasingly shifting toward freelance and contract work.

Brown said freelancers are adapting faster to AI because they are motivated to continuously learn new skills, while businesses are paying premiums for workers with AI expertise.

Huang, O'Leary And Cuban Split Over AI Job Loss Fears

Earlier, Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang said workers were more likely to lose jobs to people using AI than to AI itself, arguing that adoption of the technology was becoming essential for career success.

He said AI was already improving workflows and productivity without eliminating entire roles.

Investor Kevin O'Leary said AI had increased productivity and profits, adding that companies were seeing major efficiency gains despite job losses.

Billionaire entrepreneur Mark Cuban pushed back on fears of mass unemployment, saying Gen Z workers, as "AI natives," were well-positioned to adapt.

He urged young professionals to learn AI skills as the labor market continues to shift.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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