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Yves here. On one hand, Tom Murphy’s account of how AI has disrupted job markets and career paths in the UK serves as anecdotal evidence. On the other, his observations provide valuable insights. I encourage readers with personal experiences or knowledge from their networks to share their thoughts in the comments.
It’s frustrating to witness Richard Murphy, despite his critiques of AI, becoming an avid user and promoter of it. At the conclusion of his piece—which I have not included here, adhering to our strong opposition to AI due to its societal drawbacks, intellectual property theft, environmental damage, and the downgrading of user skill levels—he suggests readers contact their MPs using a ChatGPT tool, which he cautions can produce inaccuracies that need verification.
Does Murphy lack self-awareness? It’s no wonder the Left struggles, and Labour finds itself in its current state. His open endorsement of technologies that hinder workers is concerning, especially given that research from MIT indicates 95% of companies attempting AI integration have found it unproductive. The challenges posed by AI are not purely theoretical; they are well-documented and unavoidable. This disconnect in Murphy’s stance is troubling as it undermines his credibility in understanding the profound effects of promoting AI.
By Richard Murphy, Emeritus Professor of Accounting Practice at Sheffield University Management School and Director of Tax Research LLP. Originally published at Funding the Future
AI is changing the landscape of work at a pace faster than academia, corporations, or governments can respond.
In a recent intergenerational dialogue, I discussed with my son, Tom, how artificial intelligence has shattered the old adage: work hard, achieve good grades, and secure a solid job.
Our conversation explored the landscape of “ghost jobs,” algorithmic hiring, and the emergence of a two-tier workforce. This video highlights the profound shifts AI has introduced and how young people can navigate this new terrain.
This is the audio version:
This is the transcript:
In concluding this week’s Funding the Future podcast, I remarked:
We are in an era of transformation. Change will outpace what many of you will experience in your careers.
During my discussion with Tom, who has been behind the camera for our YouTube videos for 18 months, he stepped forward to share his insights on the impact of artificial intelligence (AI) on employment, particularly for the younger generation entering the job market.
Our dialogue traversed personal experiences, statistical insights, and the disillusionment many graduates face, revealing a concerning portrayal of a labor market that is evolving quicker than most can grasp — including employers.
The AI Revolution Without a Blueprint
I observed that numerous businesses are hastily adopting AI due to FOMO—fear of missing out—rather than following a clear strategy. Many lack an understanding of the purpose and consequences of its use. Nonetheless, the effects on people, especially youth, are already significant.
Tom was candid, describing the predicament students and graduates face; they are unsure about which skills to develop or what jobs will be available. When he began university in 2020, AI was merely an emerging concept. Now, four years later, it has infiltrated every aspect of the work environment he encounters, akin to how smartphones rapidly became ubiquitous.
The consequence is a generation being encouraged to pursue further education without clarity regarding potential outcomes. This uncertainty is spreading quickly.
Graduates Facing Elimination
According to Tom, the graduate employment landscape has turned impersonal and alienating. Job applications are now processed through AI algorithms that strip away individuality, compelling candidates to repeatedly input their information—“the most tedious task imaginable,” he remarked. After enduring hours of assessments and algorithmic scrutiny, many applicants receive automated rejections, often without any constructive feedback.
The scope of the mismatch is alarming. A survey from Hult International Business School revealed that while 98% of employers struggle to fill vacancies, 89% are hesitant to hire graduates. In essence, employers bemoan skill shortages while dismissing the very candidates they demand from educational institutions.
The absurdity compounds when considering that in 2024, only 17,000 graduate-level positions were posted in the UK, attracting 1.2 million applications, averaging about 70 applicants per job. Though many candidates applied to multiple positions, universities continue to expand enrollment, generating an additional 465,000 graduates annually. Whatever metrics are used, the arithmetic does not add up.
It’s no wonder Tom concluded: “The once-reliable path—achieve good grades, attend a reputable university, and find a solid job—is dead.”
The Emergence of “Ghost Jobs”
As if the situation weren’t disheartening enough, a significant number of advertised roles turn out to be non-existent. These “ghost jobs” are positions that companies post without any intention of hiring, whether to gather CV data, demonstrate “growth” to investors, or simply gauge the market.
Tom referenced data suggesting that 30% of listings are ghost jobs, with figures soaring to almost 60% in certain sectors. A friend of his applied for seven such positions, which lingered online long after rejection notifications were sent. One company maintained the same opening for a year, continuously re-advertising it without ever seeming to intend to fill it.
This creates an environment in which hope is systematically squandered. Job seekers invest weeks in applications for non-existent opportunities. Corporations exploit this façade of possibility to harvest data or enhance their appearance. It’s a form of corporate dishonesty—a distortion of employment—and it leaves young individuals feeling drained and disillusioned.
AI and the Vanishing of Entry-Level Roles
Tom’s area of study was accounting and finance, but he discovered that firms that once employed thousands of trainees are now scaling back significantly. Notably, the Big Four accounting firms have reduced their graduate recruitment by between 6% and 29% within a single year.
The reason? AI can perform much of the routine data entry once handled by human accountants. Employers are replacing entry-level opportunities with algorithms instead of apprenticeships.
This trend is evident in marketing, coding, and customer service—professions increasingly being “AI-washed.” As one local business owner stated, his marketing agency has effectively transitioned into a tech entity, focusing on crafting AI prompts rather than traditional campaigns. The concern he voiced was: “If there are no juniors now, who will step in when I retire?”
This paradox of automation presents a troubling reality: short-term gains in efficiency come at the expense of long-term sustainability. If companies dismantle the foundational level of employment, the ladder to advancement will vanish.
Learning to Master AI
However, not all news is grim. Tom and I frequently utilize AI in our work—whether for research, structuring videos, or enhancing creative tasks. When used judiciously, it can save time and inspire ideas.
Yet, as we reached consensus, the objective should be to master AI rather than be subservient to it. The true risk isn’t machines taking our jobs, but rather individuals forgetting how to think critically. Creating effective AI prompts requires skill, clarity, and discernment—the very abilities that educational institutions should cultivate.
Regrettably, universities, fearing issues such as cheating and plagiarism, have largely retreated from AI education. They are preparing students for a reality that is increasingly outdated. The Hult survey revealed that 94% of graduates who learned AI skills reported improved career prospects, yet many are not being afforded the opportunity for formal training.
We have an educational system hesitant to engage with the tools that define the current workplace. This status quo cannot persist.
AI: Job Eliminator or Job Creator?
According to Tom, AI serves as both: while it eliminates repetitive tasks, it also generates new prospects for proactive individuals. It can execute in seconds what once required hours—ranging from citation writing to data analysis—allowing humans to concentrate on creativity, design, and strategy.
Yet, he cautioned about the emergence of a bifurcated workforce:
- AI operators—lower-waged, task-oriented, and easily replaceable;
- AI developers and strategists—fewer in number, but wielding significantly more influence.
This divide, as he indicated, will characterize his generation’s inequality, not only between the affluent and the impoverished but between those who can collaborate with AI and those who become subservient to it.
Perpetual Learning vs. Perpetual Precarity
Our discussion concluded on a more promising note. Over the past 18 months, Tom has transformed himself into a videographer, editor, and digital learner, largely through self-directed online courses and collaborative learning. He has acquired diverse skills, from lighting and sound management to AI-driven editing, none of which were included in his original academic program.
This might be the core lesson: in a world of rapid change, education cannot end at graduation; it must be a continuous, self-initiated, and creative endeavor. Those who adapt will uncover opportunities, while those who cling to the fading job market will remain stagnant.
A New Social Contract between Education and Work
The more profound issue, I believe, is systemic. We are demanding young individuals invest time, money, and hope into an educational framework that no longer assures them a sustainable future.
Employers lament talent shortages while excluding freshly graduated candidates. Universities offer courses without teaching the urgently required skills. Governments celebrate “innovation” while neglecting the escalating despair of those left behind.
If we desire AI to benefit society rather than enslave it, we must forge a new social contract linking education, employment, and technology—one that recognizes human potential as our greatest asset.
As I concluded on the podcast:
AI is transforming our world, whether we welcome it or not. The remaining question is whether we will guide this transformation or allow it to dictate the terms for us.
AI may not signify the end of work, but it undeniably marks the demise of the illusion that traditional educational and employment norms still hold true.
