As artificial intelligence reshapes the job market, nonprofit organizations like Goodwill Industries are bracing for a surge in demand for their services. Steve Preston, CEO of Goodwill Industries International, recently highlighted this looming challenge in an interview with Fortune, warning that AI could exacerbate youth unemployment, particularly among Generation Z. With over 2 million job seekers utilizing Goodwill’s employment services last year, Preston anticipates an even greater influx as automation eliminates entry-level positions traditionally held by young workers.

Preston’s concerns stem from broader economic trends where AI tools are automating routine tasks in sectors like retail, customer service, and data entry. He points to a “youth unemployment crisis” already underway, noting that many Gen Zers lack the skills or experience to pivot into higher-level roles. Goodwill, known for its thrift stores and donation centers, has evolved into a major provider of career counseling, skills training, and job placement, serving as a safety net for those displaced by technological shifts.

The AI Disruption in Entry-Level Jobs

Delving deeper, experts echo Preston’s sentiments. A report from the Goodwill Industries International website underscores how the organization helped over 300 people find jobs daily through its programs. But with AI’s rapid advancement, Preston predicts a spike in unemployed youth seeking assistance. He referenced data showing that AI could automate up to 300 million jobs globally, with young workers bearing the brunt, as detailed in analyses from consulting firms like McKinsey.

In a parallel discussion on Yahoo News, Preston elaborated on Goodwill’s preparations, including expanding digital skills training to equip Gen Z with competencies in areas like data analytics and cybersecurity. This proactive stance comes amid rising youth unemployment rates, which have climbed in recent quarters, fueled by post-pandemic economic adjustments and now accelerated by AI adoption.

Goodwill’s Strategic Response

Goodwill’s strategy involves scaling up its Digital Career Accelerator, a program bolstered by a $12 million investment in 2022, partly funded by Google.org, as noted on the organization’s newsroom page. This initiative aims to reach over 2 million people by enhancing digital literacy, crucial for navigating an AI-driven economy. Preston, who was recently named chair of the NRF Foundation Board according to a January 2025 press release, is leveraging his position to advocate for workforce development in retail, a sector heavily impacted by automation.

Beyond training, Goodwill is adapting its operations to handle increased demand. Posts on X (formerly Twitter) reflect public sentiment, with users discussing the organization’s role in addressing unemployment, though some criticize executive salaries. For instance, recent X posts highlight concerns over CEO compensation, but Preston defends the model, emphasizing that revenues from thrift stores fund employment services, not lavish paychecks.

Broader Implications for Nonprofits and Policy

The challenge extends to policy levels. Goodwill’s lobbying efforts, totaling $270,000 in 2024 as per OpenSecrets, focus on advocating for federal support in workforce training. Preston warns that without intervention, the influx of jobless youth could strain social services, leading to higher rates of underemployment and economic inequality.

Industry insiders note that Goodwill’s approach could serve as a model for other nonprofits. By integrating AI awareness into its curriculum, the organization is not just reacting but anticipating shifts. A 2021 LebTown article on donation influxes creating jobs at Goodwill illustrates how the group turns community support into employment opportunities, a tactic now being amplified for the AI era.

Looking Ahead: Challenges and Opportunities

As we approach the end of 2025, with the current date marking September 22, Preston’s warnings gain urgency. Recent news from Yahoo Finance videos capture his message: AI isn’t just a tech trend; it’s a workforce disruptor. Goodwill is ramping up partnerships, like its consortium for new ventures mentioned in Wikipedia’s Goodwill Industries entry, to innovate solutions.

Yet, success hinges on broader collaboration. Economists suggest tax incentives for companies investing in human-AI hybrid roles, while educators push for AI-inclusive curricula. For Gen Z, the message is clear: adaptability is key. Goodwill’s efforts, if scaled effectively, could mitigate the crisis, turning potential unemployment waves into opportunities for reskilling and growth in an evolving job market.