Gen Z meets GPT: Are you ready for the AI-augmented graduate?

At last week’s NZAGE Summit, Seren Wilson (Director, Talent Solutions) and Helen Mason (Head of Talent, KPMG) led a session exploring how AI is reshaping the early talent landscape and why organisations need to adapt if they want to stay ahead. The discussion focused on how AI is changing the way we recruit emerging talent and what this means for graduates and early talent programmes.

AI: Threat or Opportunity?

The session opened with a look at how the media often frames AI as both a threat and an opportunity. We are used to seeing headlines warning that AI could replace jobs, along with warnings that someone who knows how to use AI might replace you. Seren and Helen acknowledged that AI brings a real mix of anxiety and excitement, and many people are still working through those feelings.

The Evolution of Work

A quick look back through history showed how jobs have continually shifted and been reinvented through major technological changes. Every wave of innovation has meant some roles disappear while new ones emerge. The same pattern is playing out now with AI. It is less about replacement and more about learning to work differently. The key message: get ahead of the curve by focusing on what is within your control.

Why Capability Frameworks Matter

As AI reshapes tasks, technical skills that feel essential today might not be as important in a few years’ time. That is why a clear capability framework is so important when selecting early talent. It helps organisations zero in on durable human skills such as critical thinking, collaboration, learning agility, creativity, and responsible judgement.

AI-Augmented Candidates: New Challenges

More and more candidates are using AI to support their applications, from generating CVs and automating bulk applications to using real-time AI prompts during interviews. This creates new challenges for selection processes, including fairness and assessing how well someone can actually use AI.

The room explored a number of key questions:

• Which parts of your current selection process are most vulnerable to AI-assisted candidates?

• What is your tolerance for candidates using AI in their applications (for example are you screening them out)?

• How do you keep things fair if some candidates are using AI and others are not?

• If AI capability is increasingly important in your organisation, are you assessing a candidate’s ability to use it well?

• How will you recruit for the changing capabilities needed to succeed in an AI-enabled workplace?

• Do your hiring leaders need more support to understand how candidates are using AI?

Key Takeaways

Organisations are sitting at very different points in their AI maturity, which naturally shapes how they think about AI in early talent selection. Most participants agreed that many current selection stages are now vulnerable to AI-assisted candidates, which shifts the conversation from detection to how we respond.

Tolerance for AI use has definitely grown. Whereas a year ago some organisations were actively screening out AI-generated cover letters or long-form responses, many now see smart AI use as a sign of capability. Others remain more cautious, especially around fairness when candidates use AI to different extents.

There was strong agreement on the need for clear guardrails. Organisations can better set expectations by signposting what is considered acceptable AI use during applications. Some employers are also beginning to assess AI capability directly, recognising it as a core skill and signalling the importance of candidates being open to building their AI literacy.

The group also highlighted the crucial role of hiring managers. Their understanding and involvement are essential if organisations want consistent evaluation of early talent in an AI-enabled environment.

Action Steps for 2026

The session wrapped up with a simple call to action: pick one small, practical step to help prepare for AI-augmented candidates in 2026. Building a community of practice, sharing what is working, and supporting hiring leaders to understand AI’s impact on recruitment will all help organisations stay ahead of the curve.