Concerns have emerged about the impact of AI adoption on young workers, particularly those seeking their first job in high-skilled occupations.
As global labour markets enter 2026, two reports have issued a dual warning: Rapid artificial intelligence (AI) adoption is not just threatening routine roles, but it is complicating the entry-level path for the world's highly educated youth.
AI challenges employment opportunities for the youth, the International Labour Organization (ILO) has said.
'Concerns have recently emerged about the impact of AI adoption on young workers, particularly those seeking their first job in high-skilled occupations, said the UN agency in its Employment and Social Trend Report 2026.
'Preliminary evidence for high-income countries suggests that youth with advanced education entering the labour market may face greater difficulties because of AI adoption,' the ILO added.
"An analysis by risk of exposure to AI shows that younger individuals (aged 15 to 24) with an advanced education level face a greater risk of automation than their less-educated counterparts.
'While the full impact of AI on youth employment remains uncertain, its potential magnitude warrants close monitoring,' said the report.
Monitoring will be important as the Global Risk Perception report by the World Economic Forum (WEF) has flagged talent shortage as a key challenge.
A WEF poll on global economic outlook emphasised the impact of AI on labour market.
'The employment picture in relation to AI is expected to evolve over time: Two-thirds [of respondents] expect modest job losses over the next two years, but views diverge sharply over the longer term: 57 per cent anticipate net losses over 10 years, while 32 per cent foresee gains as new occupations emerge,' the poll said.
Companies are addressing the risk of talent mismatch by deepening their engagement with academia.
Take Wipro, for instance.
The information technology company saw the gap between academic instruction and industry demands as a critical challenge, prompting it to adopt a new strategy to improve workforce readiness.
Wipro collaborated with engineering and technology colleges that topped the National Institutional Ranking Framework to establish centres of excellence at 60 campuses in India.
These centres co-develop specialised curricula in AI, data science, cybersecurity, Cloud technologies, 5G connectivity, and embedded systems.
Several of these tailored programmes offer academic credits and create a structured pathway for internships and potential full time-roles, strengthening the industry-academia link.
Wipro collaborates with Indian Institute of Technology Delhi, the Indian Institute of Science and BITS Pilani to enable company employees to pursue advanced courses through work-integrated learning programmes.
By partnering with various national skill development initiatives, including Nasscom's Future Skills Prime, the company says it has contributed to the upskilling of tens of thousands of students and professionals in advanced digital disciplines.
Wipro says its efforts also extend to faculty development, with thousands of academics receiving training in AI and digital technologies.
Wipro launched a programme called 'Train to Hire' in mid-2024 to ensure that new and existing employees are equipped with the skills needed for an AI-driven future.
By identifying high potential students during their academic programmes and offering targeted skilling aligned with real project environments, Wipro increases the likelihood that new hires understand contemporary enterprise demands.
This early alignment not only accelerates productivity but also reduces the time typically required for onboarding and training.
"Our goal with centres of excellence was to bridge the gap between academic learning and industry need," said Sanjeev Jain, chief operating officer, Wipro.
"These centres have transformed how students enter the workforce by equipping them with industry-relevant skills," Jain added.
"Students trained at these centres are better prepared, significantly reducing post-joining training and accelerating deployment on projects, improving employability and helping fulfill business requirements faster."
Industry leaders across various sectors will have to adopt a proactive strategy to address the talent gap.
Without new strategies, the risk of talent shortages will grow steadily.
Key Points
Feature Presentation: Ashish Narsale/Rediff