Facing AI and a tough job market, gen Z turns to entrepreneurship: ‘I have to prove myself’

2026-04-25 · Source: AI (artificial intelligence) | The Guardian · Field: Business & Management — Entrepreneurship & Start-ups, Human Resources & Workforce Development, Artificial Intelligence & Machine Learning · Depth: Fundamental Awareness, long

Summary

Gen Z graduates are increasingly turning to entrepreneurship and self-employment due to a challenging job market exacerbated by artificial intelligence. The unemployment rate for Americans aged 22-27 is at its highest since 2020, with entry-level positions particularly vulnerable to AI displacement. Many graduates, like Ashley Terrell (University of Hawaii, 2024), found limited traditional job offers and instead built their own marketing portfolios or started businesses. Suhit Agarwal (University of Southern California, 2025) and Shola West (25) similarly pivoted to founding companies or consultancies after facing difficulties in securing corporate roles or experiencing layoffs. This trend is supported by the rise of low-code AI tools, which enable individuals to build prototypes and companies with fewer traditional skills and resources, fostering a sense of control and ownership in an unstable economic landscape.

Key takeaway

For entrepreneurs or recent graduates navigating a challenging job market, consider leveraging AI tools to create your own opportunities rather than solely pursuing traditional entry-level roles. The "old promise" of job stability has shifted to a "new promise" of ownership, suggesting that building your own venture or side-hustle can offer greater control and career progression, even if it means initially forgoing a steady paycheck or benefits.

Key insights

Gen Z is embracing entrepreneurship, driven by a tough job market and AI's impact on entry-level roles.

Principles

• Entry-level jobs are most vulnerable to AI impacts.
• AI tools can enable individual business creation.
• Ownership offers control in an uncertain job market.

Method

Young professionals are creating their own opportunities by building portfolios, direct messaging companies, and using AI tools to develop products or services, often starting as side-hustles.

In practice

• Build a portfolio by creating content for brands.
• Utilize low-code AI tools for rapid prototyping.
• Seek mentors and experienced hires for startup growth.

Topics

• Gen Z Entrepreneurship
• AI Job Displacement
• Entry-Level Job Market
• Workforce Adaptation
• Low-Code AI Tools

Best for: Entrepreneur, HR Professional, Policy Maker

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI (artificial intelligence) | The Guardian.