INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025  
Beyond Automation: How AI is Reshaping the Job Market and  
Redefining What it Means to be Career Ready  
Maham Mughal1 ,Henna A. Qureshi2  
National University of Sciences & Technology, Pakistan  
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000722  
Received: 06 November 2025; Accepted: 12 November 2025; Published: 22 November 2025  
ABSTRACT  
In an era defined by digital transformation, Artificial Intelligence (AI) is fundamentally reshaping the world of  
work and redefining the notion of career readiness. As industries integrate intelligent systems into their  
operations, higher education must evolve to equip students with the competencies required to navigate the AI-  
driven landscape. This qualitative study examines undergraduates’ perceptions of AI’s impact on  
employability, skill development, and future career preparation within the context of Pakistan’s higher  
education system. Using purposive and snowball sampling, twenty-one semi-structured interviews were  
conducted with final-year students across STEAM disciplines. The data were analyzed through Reflexive  
Thematic Analysis (RTA) to identify patterns in how learners interpret AI’s role in shaping future career  
pathways. Findings indicate that students perceive AI as both an opportunity and a challenge, enhancing  
efficiency, innovation, and access to knowledge, while also raising concerns about its ethical, technical, and  
adaptability implications. Participants emphasized the growing need for hybrid skill sets that blend  
technological fluency with human capabilities such as creativity, communication, and critical thinking. The  
study provides a framework, illustrating what is currently happening in the labour market and what needs to be  
done to learn to foster sustainable employability in an evolving job market.  
Keywords: Artificial Intelligence, Career Readiness, Employability, Soft skills, AI-related skills, Thematic  
Analysis  
INTRODUCTION  
The accelerating integration of Artificial Intelligence (AI) into the world of work is reshaping the very  
foundation of the global labour market. Once confined to automation and efficiency, AI now influences  
decision-making, recruitment, skill development, and the overall nature of employment. AI is not only  
influencing how we work but also redefining the skills needed to navigate this new professional ecosystem  
(Acemoglu & Restrepo, 2019; Brynjolfsson & McAfee, 2017; Zouheir, 2025). As intelligent systems continue  
to evolve, industries across sectors are undergoing significant transformations, creating new opportunities  
while simultaneously displacing traditional roles. This paradigm shift necessitates a re-evaluation of what it  
means for students to be “career-ready” in an AI-driven job market (Wong, 2024). This study holds significant  
importance for understanding how undergraduate students perceive the growing role of Artificial Intelligence  
(AI) in shaping their career readiness. As universities worldwide transition toward technology-enhanced  
learning and AI-integrated systems, undergraduates represent a critical group navigating this evolving  
academic and professional landscape. Their perceptions provide valuable insight into how future graduates  
interpret, accept, and prepare for AI-driven transformations in the labour market.  
LITERATURE REVIEW  
In today’s dynamic job landscape, employability is no longer determined solely by technical expertise or  
academic credentials. Instead, adaptability, emotional intelligence, and the capacity for lifelong learning have  
emerged as essential attributes for sustained success. The human ability to interpret, empathize, and innovate  
remains a crucial differentiator in an age where machines can replicate many cognitive and operational tasks.  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025  
Consequently, understanding how individuals, particularly students as future professionals, perceive and  
prepare for these changes offers valuable insight into the evolving relationship between humans and  
technology in the labour market (Ojan et al., 2025; Poláková et al., 2023; Zeineb Mezghani & Turki, 2025).  
While AI offers immense potential to support human development, its rapid advancement also presents  
complex challenges. Concerns related to job displacement, ethical decision-making, digital inequality, and  
overreliance on technology have intensified debates surrounding the future of work. At the same time, AI holds  
the potential to enhance employability by acting as a tool for personalized learning, career exploration, and  
skill acquisition (Mughal & Qureshi, 2025). Navigating the duality of AI as both a disruptor and an enabler  
requires a nuanced understanding of how students approaching the job market adapt to technological change  
(Khogali & Mekid, 2023; Paić & Serkin, 2025; Sharps, 2024).  
Artificial Intelligence (AI) is no longer a distant innovation confined to advanced economies or techdriven  
industries; it is a transformative force that is reshaping economic landscapes globally. The past decade has  
witnessed a dramatic acceleration in the development of AI technologies. This momentum has been driven  
largely by breakthroughs in machine learning and the exponential growth of available data, which fuel  
increasingly sophisticated AI systems capable of performing complex tasks (Acemoglu & Restrepo, 2020).  
These innovations are rapidly reshaping business operations across industries, from manufacturing and  
logistics to finance, healthcare, and education. Compounding this transformation is a structural shift in  
workplace models following the COVID-19 pandemic. During the peak of the pandemic, the vast majority of  
employees, nearly 90% worked on-site. However, by 2022, this number had decreased to approximately 60%,  
stabilizing as hybrid and remote work models became embedded in organizational culture (Acemoglu &  
Restrepo, 2020; Battisti et al., 2022). Due to this, the global labour market is undergoing profound  
transformations, with particularly critical shifts observed in developing economies. Labour shortages are  
intensifying as unemployment rates reach historic lows and the gap between job vacancies and available talent  
continues to widen. This growing tension is largely fueled by demographic changes, most notably the ageing of  
populations and a gradual decline in average working hours per employee, especially within European nations  
(OECD, 2024; World Economic Forum, 2025).  
In addition, companies face increasing difficulty finding skilled workers, heightening recruitment and  
retention competition (Selenko et al., 2022).AI is both disruptive and an opportunity, creating new work types  
by reconfiguring roles, eliminating some tasks, and generating demand for others needing oversight or  
interpretation. AI's workplace role is not just subtractive; it enables new job categories. By automating tasks,  
optimizing workflows, and offering real-time insights, AI streamlines processes and boosts productivity, with  
gains spreading across industries like research, cybersecurity, and data science. This growth supports job  
creation and skills development, helping counteract labor shortages with meaningful, well-paying work. AI is  
transforming work structure, location, and valued skills. While job displacement concerns exist, AI also offers  
broader benefits such as employment growth and economic resilience. Policymakers, educators, and employers  
must focus on reskilling, digital literacy, and inclusive policies to ensure sustainable growth in an AI-driven  
economy (Selenko et al., 2022). While developed countries are leading in AI implementation, many  
developing nations are still struggling to catch up. Pakistan's education sector faces multiple systemic barriers  
that prevent the development of a skilled, future-ready workforce. Key issues include underfunding, poor  
policy implementation, outdated curricula, a lack of qualified teachers, and weak school governance. The  
education budget remains among the lowest in South Asia, at approximately 2% of the country's GDP,  
significantly hindering quality improvements. A major concern is the country’s high out-of-school population.  
Nearly 22.8 million children aged 5 to 16 are not enrolled in school, with girls and marginalized communities  
disproportionately affected. Regions like Sindh and Balochistan exhibit severe gender disparities, where up to  
78% of girls are out of school. While over 10 million boys and 8.6 million girls attend primary school,  
enrollment drops drastically at the secondary level. Pakistan’s labour market is increasingly demonstrating an  
inability to sustain the previous pattern of employment absorption (Sain, 2023; Qasim, 2025).  
Although AI has the potential to create new jobs, particularly in areas like AI system maintenance, data  
analytics, and digital services, it also poses a significant risk of displacing traditional roles, especially in  
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agriculture, manufacturing, and clerical work. As AI could generate more jobs than it eliminates by spawning  
entirely new industries. However, these new roles typically require high technical skills, leaving behind  
workers who lack the training to transition. This growing mismatch between labour supply and demand has  
resulted in a dual burden: both unemployment and underemployment (Ali et al., 2025; PIDE, 2021). Although  
the overall unemployment rate remains around 5% and may not appear alarming at first glance, what is  
particularly troubling is its disproportionate impact on specific segments of the population. The highest  
incidence of joblessness is observed among young individuals, particularly those who are educated and possess  
vocational or professional training, indicating a significant disconnect between educational outcomes and  
labour market demands (Chan & Hu, 2023). Additionally, the World Economic Forum's Future of Jobs 2020  
report states that the COVID-19 pandemic-induced recession and the quick advancement of automation  
technology are altering the labour market far more quickly than anticipated. In terms of Jobs, such as data  
entry, accounting, and administrative services, are among the skilled jobs that are in high demand. AI, a key  
component of the fourth industrial revolution, unavoidably alters the labour force's composition and human  
social standing (Habets et al., 2020; Shen, 2024).  
The demands of the labour market have drastically changed in recent decades, especially with the advent of  
new 21st-century work organisation methods. Increased competition, work intensity, faster work pace, shorter  
lead times, the expansion of various flexible work contracts (including part-time work), and the greater  
decentralisation of decision-making authority and responsibilities are all indicators of these new work  
arrangements (Borg et al., 2025). As a result of these shifts, a sustainable entry into the labour market has  
become essential. Interest in graduates' so-called "work-readiness" has skyrocketed due to several factors,  
including concerns that educational systems may inadequately prepare students with the employment skills  
required today. Individual career paths have become less stable, career prospects more uncertain, and the fit  
between education and future labour market needs increasingly fragile. Graduates must now be better equipped  
to face this evolving environment (Frey & Osborne, 2017; Kim & Kim, 2024).  
METHODOLOGY  
Artificial Intelligence (AI) is transforming the landscape of professional life, with impacts that are expected to  
be far-reaching and enduring. As AI continues to influence industries and redefine employability and the world  
of work, it becomes crucial to explore its implications for career readiness. In alignment with Sustainable  
Development Goal 4 (Quality Education), this study seeks to understand how students perceive AI’s role in  
shaping their preparedness for the future workforce within Pakistan’s evolving job market. The study is guided  
by one overarching research question and three supporting sub-questions:  
Central Research Question:  
1. How do undergraduate students perceive the role of AI in enhancing career readiness?  
Sub-Questions:  
1. What are students’ perceptions of AI and its growing influence on the world of work?  
2. How do undergraduate students view the impact of AI on future employment opportunities and skill  
requirements?  
3. What are students’ perceptions on developing AI-related competencies to remain career-ready in an  
AIdriven job market?  
Data for this qualitative inquiry were gathered through semi-structured interviews, reflexive journals, and  
secondary sources, including reports from the World Economic Forum (2023–2025) and the National Artificial  
Intelligence Policy (2025) and a draft (2023). A total of 21 undergraduate participants from STEAM  
disciplines (11 male, 10 female) were involved, which was deemed sufficient for depth and diversity in  
insights (Qureshi, 2018a). Each interview lasted at least forty minutes and adhered to ethical research  
standards (NCDA, 2024).  
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Table 1 Demographics of the Participants  
Gender  
Female  
Male  
No. of Participants  
Age Range  
22-24  
Educational Background  
STEAM/STEM  
10  
11  
22-23  
STEAM/STEM  
The data were collected using purposive sampling and snowball sampling techniques in a nested sampling  
scheme (Qureshi, 2018 b). Purposive sampling was employed to gather data from students who met the  
inclusion criteria: they were enrolled in STEAM fields as final-year students of HEIs in Pakistan, had used AI  
in their student life, and resided in urban cities in Pakistan. To uphold rigor and credibility, a dual strategy was  
̈
̈
implemented: first, the Instrument for Theoretical Saturation Evaluation Tool was used (Unlu & Qureshi,  
2023). Second, to maintain trustworthiness, procedures such as member checking, peer debriefing, and expert  
validation were adopted and recorded in a systematically maintained audit trail (Linkon & Guba, 1985).  
Analysis  
The collected data were analyzed to identify patterns and themes within the data using Reflexive Thematic  
Analysis as per Braun and Clark (RTA) (Braun & Clarke, 2022). The analysis involved six steps:  
Familiarization with the data, Coding, Generating Initial Themes, reviewing and Developing Themes,  
Refining, Defining, and Naming Themes, and writing up. In the familiarization stage, interviews were  
repeatedly read, listened to, and transcripts were reviewed multiple times. During this stage, the initial coding  
process started as per qualitative tradition. In the Coding stage, the data were coded. As RTA is a reflexive  
process, codes were constantly refined, deleted, renamed, and grouped into subthemes. These codes were then  
grouped into broader themes that capture meaningful patterns. Next, the themes were reviewed to ensure  
coherence and alignment with the data. The final step involves writing up the findings and synthesizing the  
themes into a coherent, detailed narrative. A thematic map (see Figure 1 below) was constructed to visualize  
the underlying patterns within the data.  
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Figure 1 Thematic Map  
Findings of the study  
Finding #1: AI is the catalyst for emerging careers due to the transformative impact of AI on the labour market  
and the future of work. Instead of viewing AI purely as a threat to job security, students generally recognized  
its dual nature: as a replacement for outdated roles and repetitive tasks. In terms of automation of tasks,  
students stated that “Task efficiency due to AI, it is very important that you use AI, because ultimately, if there  
is something, there is a presentation that you have to make, and you take, like, 1 day to complete it. And there  
is someone else who knows a certain AI tool they just they just give an AI prompt to it and it generates that  
presentation in like 10 minutes” (Interview#4, lines 161-63). Moreover, in terms of replacement of jobs due to  
AI as stated “so it will obviously replace jobs in a lot of ways but it will replace some jobs like some jobs that  
are repetitive or routine like data entry or processing, or is it that maybe will be much more efficient more  
cheaper without like, yeah, not getting fatigued obviously you would choose that, and now customer services  
too where AI chatbots are doing more customer services too” (Interview#19, lines 277-280).  
Where AI has seemed to be a threat to many jobs and careers, it is also creating numerous new opportunities  
for students to enter, which in turn provides them with a variety of different career paths options, as stated, “a  
lot of new types of jobs will be created. For example, if you look back 5 to 6 years, or even 10 years ago, you  
wouldn't really find roles like AI engineers or machine learning engineers. But now, those roles have become  
very common. And even within those fields, people are now hiring for very specific and niche areas; Take  
prompt engineering, for instance. What is prompt engineering? It's basically about designing and structuring  
inputs for a chatbot how you frame a prompt so that the AI gives you the desired response. In other words, it’s  
a specialized skill where you train the AI through carefully crafted prompts to produce effective and accurate  
outputs” (Pilot Interview, lines 238-244). Furthermore, one of the most prevalent things noticed due to the  
evolution of AI is the intense job market competition, as stated “So if I talk about the job market and tech now  
the competition is really high like you cannot even think about it, like if I have one skill and that is at a  
beginner level or if I am mediocre, I can’t assume that I will find a good job” (Interview#1, lines 46-47).  
Finding 2#: While AI excels in efficiency, data analysis, and repetitive task automation, it falls short in areas  
requiring emotional depth, social understanding, and moral judgment. Therefore, human-AI collaboration,  
rather than replacement, is the most effective approach for the future of work and learning. For instance, a  
student stated that, “Because AI is the kind of technology that doesn’t have empathy — it cannot actually feel  
emotions” (Interview#6, lines 44-47). Another student stated that “So when emotions are absent, it’s obvious  
that humans are the ones who will take action. For example, if we look at another case, AI cannot identify  
symptoms by itself, and when it can’t identify symptoms, you’ll naturally go to a doctor. However, AI can still  
assist if you tell it your symptoms; it can suggest possible medicines or treatments. Similarly, from an  
academic or professional perspective, AI can never convince someone in person for example, it cannot go and  
persuade a client or build a business partnership. Such abilities require critical human skills like  
communication, persuasion, and reasoning. AI can generate ideas, but critical thinking, analyzing, interpreting,  
and making judgments ultimately comes from the human mind” (Interview# 64-70). This indicates that  
upcoming educational and training initiatives should emphasize the integration of AI literacy with specialized  
domain knowledge. Learners must be equipped to leverage AI as a supportive resource instead of viewing it as  
a replacement for human decision-making.  
Finding 3# AI adoption in the labour market requires soft skills and upskilling in technical skills. Students are  
aware of the evolving skill sets essential in a labor market shaped by AI. For instance, a student stated, “The  
skills that are required to work in the AI influenced industry can be divided into two parts, first is the technical  
skills that a person requires and the other one is the soft skills, the technical skills I think a person working in  
this field has to be good in data analysis, machine learning, programming and you should be good at problem  
solving as well, other than that you should be adaptable, so that you can easily be accommodated in the newly  
introduced technologies. Often more in soft skills, one should be good at explaining the problem that he's  
facing” (Interview# 3, lines 34-39). Another student added, “your communication, the way you present  
yourself, leadership skills, planning skills, these are those skills which are innate and you develop them  
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yourselves, so I think to work on these things is important along with your hard skills” (Interview# 1, lines 64-  
67)). Another student stated that “So emotional intelligence is a very skillset that humans can only possess and  
to understand your emotions and the emotions of others and to work around that is a very strong skillset”  
(Interview#13, lines 214-216). The findings also center on how students compare their human capabilities with  
the abilities of AI. While they acknowledge AI’s efficiency and speed in performing academic or technical  
tasks, they also emphasize the value of human skills that AI cannot replicate, especially in areas involving  
emotional intelligence, communication, and creativity. Skills like emotional intelligence, effective  
communication in diverse social settings, cultural understanding, and creative problemsolving are seen as  
distinctly human qualities that AI cannot replicate. The findings also center on how students compare their  
human capabilities with the abilities of AI. While they acknowledge AI’s efficiency and speed in performing  
academic or technical tasks, they also emphasize the value of human skills that AI cannot replicate, especially  
in areas involving emotional intelligence, communication, and creativity. Skills like emotional intelligence,  
effective communication in diverse social settings, cultural understanding, and creative problem-solving are  
seen as distinctly human qualities that AI cannot replicate.  
Finding 4 #: AI usage requires caution due to its limitations and potential risks, which primarily include ethics,  
misinformation, data privacy, and hindering critical thinking as stated by a student “You're basically like  
skipping your critical thinking part and just making AI to the work and again like it shows that this is  
something that AI did” (Pilot Interview, lines 427-429). Another student stated, “Okay, if we talk about AI  
ethics, I feel that this shouldn’t be brought into academics. A person has their own capabilities, their own  
critical thinking and these ideas and thoughts they’re ours. So, if the idea is yours and the critical thinking is  
yours, then you should have the ability to express that idea yourself, rather than relying on any tool... That’s  
why I believe it shouldn’t be introduced in academics, because it’s leading students toward distractions, the  
mind, and the brain are being affected” (Interview# 8, lines 191-198). Another student stated that, “So I think  
another important skill, or rather, an important area of knowledge, that everyone should have been the  
understanding of AI ethics. Before stepping into any job, especially if your work is related to AI, you should at  
least have a basic understanding of what’s right and wrong when it comes to using AI. For example, you  
should know that if you use AI in a certain way, it’s considered ethical, and if you use it another way, it could  
be unethical. Take deepfake videos, for instance, these days, AI is being used to create fake or misleading  
videos, which is clearly unethical. Similarly, when it comes to issues like plagiarism or cheating using AI tools,  
those are also ethical concerns that need to be addressed. So, having this awareness is crucial in today’s  
AIdriven world” (Pilot interview, lines 415-428). The findings imply that for policymakers, this requires the  
development of clear, consistent, and contextually relevant guidelines that govern the ethical use of AI in  
academic settings. Moreover, public and private educational bodies should collaborate to ensure equitable  
access to AI tools while preventing misuse.  
Findings 5#: AI integration in Pakistan requires addressing multiple contextual challenges, primarily the  
absence of a coherent government policy on AI in education and workforce development. Many participants  
also criticized the absence of a coherent government policy on AI in education and workforce development.  
These barriers suggest that without state-led intervention, AI integration will not exist. The Government must  
therefore prioritize AI literacy for students and work on improving infrastructure, teacher training, and public  
awareness initiatives. Additionally, formulating an AI policy is significant to align AI strategies with  
Pakistan’s broader development goals. Addressing these challenges requires strategic investment, policy  
reform, and inclusive digital literacy initiatives. For instance, a student stated regarding the lack of awareness  
of AI, “Students here have absolutely no idea what they’re doing. They only know that when they get a  
question or a problem, they have to pop it into AI, take whatever solution or answer AI gives them, pop it into  
the assignment section, and submit it. That’s it. That’s the only thing I can say about Pakistan” (Interview#15,  
lines 170-73). Another student, while describing the lack of practicality among students, stated that, “In  
Pakistan, there isn’t that much awareness about AI. Even though we are studying AI, we still don’t know  
enough about what’s actually happening these days. For example, if you ask a student to create a chatbot, they  
don’t really understand how to do it” (Interview#17, lines 78-81). The findings also suggest some actionable  
strategies for the Government to invest in resources and funds to inculcate AI. In addition, universities should  
form partnerships with tech industries, which can help to provide exposure to real-life AI applications. A  
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student stated that “Someone recently said to me that when you graduate, especially in the current era, they  
used the term 'warp speed', they said you’ll have to move at that pace, because AI is advancing so rapidly that  
you’ll have to keep up with it at the same speed. If you don’t, then after some time, it will take over you. And  
where a company used to need 100 developers, soon they’ll only need 2 developers who can do the work that  
10 people used to do” (Interview# 5, lines 179-84).  
Figure 2 Framework for Understanding AI’s Transformative Role in the Labour Market  
The Framework for Understanding AI’s Transformative Role in the Labour Market provides an integrative  
understanding of how artificial intelligence (AI) is reshaping the employment landscape and redefining what it  
means to be career-ready in an AI-driven job market. Drawing on Savickas’ Career Construction Theory and  
the Technology Acceptance Model (TAM), the framework captures the dynamic relationship between  
technological advancement, labour market evolution, and the competencies required for future employability.  
The first dimension, Current Labour Market Dynamics, examines how AI, automation, and digitalisation are  
restructuring work patterns, modifying job demands. These changes necessitate career adaptability, a core  
concept in Savickas’ theory, as individuals must continuously reconstruct their career paths in response to  
technological shifts.  
The second dimension, Emerging Job Roles and Transformation, highlights how AI not only disrupts existing  
occupations but also generates new hybrid roles that merge human creativity, analytical reasoning, and  
technological proficiency. Acceptance and effective utilisation of these technologies, as proposed in TAM,  
depend on individuals’ perceptions of AI’s usefulness and ease of integration within professional settings. The  
third dimension, Evolving Skill Sets for the AI-Driven Economy, underscores the growing importance of  
combining technical knowledge, such as data analytics and computational literacy, with distinctly human  
abilities, including critical thinking, creativity, adaptability, and emotional intelligence. Finally, the Strategic  
Planning for Career Readiness dimension emphasizes the deliberate actions needed by policymakers,  
educators, and individuals to prepare for AI’s ongoing influence. This includes reforming curricula, promoting  
digital inclusion, designing upskilling programs, and fostering lifelong learning mindsets that support positive  
technology adoption. Together, these four dimensions reflect a continuous, adaptive cycle where AI drives  
market transformation, redefines career identities, and necessitates both psychological readiness and  
technological acceptance to ensure sustainable employability in an AI-enabled future.  
DISCUSSION  
In an era where Artificial Intelligence (AI) is reshaping the nature of work, understanding how students  
prepare for future careers requires both psychological and technological perspectives. Savickas’ Career  
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Construction Theory (2005) explains how individuals adapt to change through career adaptability, which  
includes concern, control, curiosity, and confidence, key traits for navigating uncertainty and continuous  
reskilling in an AI-driven world. However, adaptability alone cannot explain how students engage with  
technology. The Technology Acceptance Model (1989) complements this by examining individuals’  
willingness to adopt digital tools through Perceived Usefulness (PU) and Perceived Ease of Use (PEOU).  
These beliefs shape attitudes toward AI-based platforms that support their career development. Together, CCT  
and TAM provide a comprehensive lens to understand how adaptability and technology acceptance influence  
students’ readiness for careers in an AI-transformed job market.  
The rapid integration of Artificial Intelligence (AI) into the modern workforce is fundamentally transforming  
the structure of the global labour market. Once primarily associated with automation and productivity  
enhancement, AI now plays a pivotal role in areas such as decision-making, recruitment, talent development,  
and workplace operations. Its influence extends beyond routine tasks, reshaping the competencies required to  
thrive in an increasingly technology-driven environment (Acemoglu & Restrepo, 2019; Brynjolfsson &  
McAfee, 2017; Johanna et al., 2024; Zouheir, 2025). As intelligent systems advance, industries across various  
sectors are experiencing profound changes, introducing new career opportunities while rendering some  
traditional roles obsolete (Wong, 2024). In Pakistan, where AI integration in education is still in its early stages  
and disparities in digital access persist, this dual focus is crucial. For instance, the HEC National AI Policy  
draft (2023) emphasizes the importance of integrating AI into higher education curricula, raising awareness,  
and also focusing on upskilling and reskilling, but without focusing on students' career readiness and equipping  
them with the knowledge, attitude, and skills regarding AI, such policies may fall short. Most importantly, one  
of the drawbacks is that this policy has yet to be implemented, which itself raises concerns, as students are not  
being prepared for the world of work. As AI adoption accelerates globally, there is a significant increase in  
both demand for AI literacy and appreciation of human-centric skills. Professionals and organizations are now  
realizing that while AI can enhance productivity, it cannot fully replace human judgment, empathy, and ethical  
decision-making (Akinnagbe, 2024).  
Furthermore, a study underscores how students viewed AI as not only an assistant in task completion but also  
as a facilitator of deeper, career-relevant insights. One major point that emerged was the potential of AI to  
deliver personalized academic and career advising where data-driven technologies are employed to match  
students’ current skillsets with evolving labour market demands (Yang & Chang, 2022). In addition, it also  
highlights that AI-based platforms can analyze students’ academic profiles, compare them with industry  
requirements, and offer tailored guidance for future educational or professional pathways (Heinisch et al.,  
2019; Mason et al., 2023; Vo et al., 2022). These tools not only enhance student self-awareness regarding their  
competencies but also contribute to more informed decision-making around academic and vocational planning  
(Bankins et al., 2024).  
In terms of the required skills in the age of AI, a Research study states that 70% anticipate recruiting talent  
with new skill sets, 40% expect to reduce headcount as certain skills become outdated, and half of the surveyed  
employers aim to transition existing employees from declining roles into those experiencing growth (World  
Economic Forum, 2025). Furthermore, despite acknowledging AI’s potential benefits, several participants  
noted that while AI has created new job roles, it has already begun to phase out certain manual roles that were  
once the domain of human workers such as such as data entry jobs, customer service, and, as discussed before,  
repetitive tasks. This aligns with the global trends highlighted by the International Economic Development  
Council, which notes that while AI can create new fields such as prompt engineering, AI ethics, data analytics  
and machine learning, it also contributes to job displacement and skill polarization (IEDC, 2025; Soulami et  
al., 2024). As Artificial Intelligence (AI) continues to advance within labour market dynamics, it is reshaping  
the skill requirements necessary for employability. Participants in the study highlighted competencies, which  
include communication, emotional intelligence, decision-making, problem-solving, and critical thinking, that  
remain indispensable, as they represent areas where human judgment and empathy cannot be replicated by  
machines (Zirar et al., 2023). These findings align with recent global labour market analyses, including reports  
from the World Bank Group (World Bank, 2025), which emphasize that although AI can automate specific  
functions, the demand for distinctly human capabilities is simultaneously increasing.  
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Participants strongly believed that although AI excels at automating technical and repetitive tasks, it lacks  
human qualities vital for leadership, teamwork, communication and emotional intelligence. This perspective  
reflects an understanding that success in the future workplace will depend on collaboration between humans  
and machines, rather than a rivalry. As digital tools and AI platforms continue to evolve rapidly, students  
expressed a growing awareness of the need for adaptability. They viewed flexibility, willingness to learn, and  
openness to new tools as essential survival skills in an ever-changing job market. This aligns with global  
findings from the World Economic Forum, which stresses the importance of a balanced skillset combining  
technical proficiency and interpersonal abilities. Among the most critical competencies are critical thinking  
and creativity, which empower learners to analyze challenges from multiple perspectives and develop  
innovative solutions (Bernal, 2025). Equally important are collaboration and communication skills, essential  
for effective teamwork and the articulation of ideas, as well as ethical and global awareness, which help  
learners engage thoughtfully with global challenges and advocate for sustainable and equitable outcomes  
(World Bank, 2025). Although AI demonstrates potential to support learning, participants emphasized that it  
cannot substitute for the mentorship, empathy, and ethical guidance provided by educators (World Economic  
Forum, 2023). They also expressed caution regarding excessive dependence on AI, noting that over-reliance  
may weaken learners’ ability to think critically and solve problems independently. This concern aligns with  
showcasing potentially reducing their cognitive engagement (Borenstein & Howard, 2020; Kumar et al.,  
2025).  
Limitations and Recommendations  
This study represents an early effort to explore undergraduate students’ perceptions of the impact of AI in the  
job market. There were two limitations of the study. Firstly, the research was geographically restricted; hence,  
the experiences of students in underdeveloped regions with weaker digital infrastructure were not captured.  
Second, the scope was limited to students, excluding the perspectives of employers, employees, policymakers,  
and industry stakeholders. These factors limit the generalizability of the findings. To address these gaps, future  
research should adopt a mixed-methods approach that includes multiple stakeholders’ perspectives across  
diverse regions of Pakistan.  
CONCLUSION  
This study highlights that AI is not merely automating tasks but rather fundamentally transforming the concept  
of career readiness. Students recognize AI as both an opportunity and a challenge, one that demands  
adaptability, digital fluency, and ethical awareness. While AI enhances efficiency and access to knowledge, it  
cannot replace uniquely human attributes such as empathy, creativity, and complex decision-making. The  
findings highlight an urgent need for education systems to evolve, aligning learning outcomes with the  
dynamic demands of AI-driven workplaces. Ultimately, preparing future graduates requires a balanced  
approach that combines technological innovation with a focus on human-centered competencies. By fostering  
critical thinking, ethical responsibility, and continuous learning, higher education can equip students to  
navigate the complexities of the modern labour market and thrive in an era where human expertise and AI  
coexist.  
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