In the rapidly evolving job market of 2025, artificial intelligence is not just a disruptor—it’s a potential equalizer for young workers. Garrett Lord, CEO of Handshake, a leading platform connecting college students with employers, argues that AI could empower Generation Z like an “Iron Man suit,” amplifying their natural tech fluency into a competitive superpower. In a recent interview with Business Insider, Lord highlighted how Gen Z’s intuitive grasp of AI tools positions them to thrive amid job transformations, even as automation reshapes entry-level roles.

This optimism contrasts with broader anxieties. Recent college graduates are facing one of the toughest hiring environments in years, with unemployment rates for this group climbing as companies deploy AI for tasks once handled by junior staff. Data from the Federal Reserve Bank of New York shows the underemployment rate for recent grads hovering at around 40%, underscoring a mismatch between traditional education and AI-driven demands.

AI as a Catalyst for Skill Evolution

Lord’s perspective draws from Handshake’s vast data, tracking millions of student-employer interactions. He points out that while AI might eliminate rote tasks, it creates opportunities for young workers to focus on higher-value activities, such as creative problem-solving and strategic oversight. “Gen Z is already fluent in AI,” Lord told Business Insider, suggesting their comfort with tools like ChatGPT gives them an edge over older generations still adapting.

Supporting this view, a New York Times report from May detailed how AI is automating entry-level jobs in fields like finance and marketing, yet it’s also spawning new roles in AI training and oversight. College grads like Jackson Spellman, profiled in a Bloomberg article, have pivoted to gigs training AI models, blending their domain expertise with tech savvy to earn competitive wages.

Challenges in the Entry-Level Arena

However, not all indicators are positive. A Bloomberg analysis from July revealed a plunge in job postings for young professionals, with AI handling tasks like data entry and basic analysis, making the hunt harder. PBS News, in an August segment, quoted Handshake’s chief education strategy officer Christine Cruzvergara, who advised grads to emphasize AI literacy in resumes to stand out.

Sentiment on social platforms echoes this tension. Posts on X, formerly Twitter, from users like Wes Roth in April, highlight how nearly half of 2025 grads view traditional degrees as outdated in an AI era, pushing for skills like prompt engineering. Another X post by Haider in May warned of AI risking entry-level jobs in tech and consulting, aligning with Dario Amodei’s predictions from Anthropic about accelerated job shifts.

Emerging Opportunities and Strategic Shifts

Despite these hurdles, innovative pathways are emerging. Handshake itself is adapting, launching programs that match students with AI-related gigs, as noted in a July Business Insider piece on evolving AI training from generalists to STEM experts earning over $125 hourly. Lord’s vision extends to redefining job searches: in a conversation shared on X by The Information in August, he described a “radical evolution” where platforms like Handshake become hubs for skill monetization beyond traditional employment.

This shift could democratize access. A Breitbart summary of a Wall Street Journal report emphasized AI’s threat to career ladders, but also its potential to expand fields like renewable energy and healthcare through AI-assisted innovation.

The Road Ahead for Gen Z Workers

For industry insiders, the key takeaway is preparation. Employers, per a January X post by Mario Nawfal citing surveys, increasingly favor AI-savvy candidates over unprepared grads, with 37% preferring AI tools for certain tasks. To counter this, educators and platforms must integrate AI training early, as suggested in a July WhatJobs news piece on AI-powered career tools for 2025 grads.

Ultimately, Lord’s “Iron Man suit” metaphor encapsulates a dual reality: AI amplifies potential but demands adaptation. As 2025 unfolds, young workers who harness it may not just survive—they could redefine professional success, turning disruption into dominance.