In 2015, entering the world of work was vastly different: remote work was for a select few and the digital landscape was an enabler. However, there were signs of change. Social media was gaining traction; Instagram had just introduced ads; and smartphones were becoming more accessible. Still, digital careers were often dismissed as unserious.

Fast-forward to 2025, and we’re immersed in a digital-first reality. Social platforms have become global stages for entrepreneurship, activism and learning; influencers earn more than movie stars; AI tools assist with job applications, automate business operations and even offer guidance for starting a business. World Youth Skills Day, observed annually on 15 July, is an opportunity to reflect on the role that artificial intelligence (AI) and digital skills play in readying young people for employment and entrepreneurship.

For today’s youth, the digital world is not a supplement – it is a key arena of work and opportunity. It presents a generational opportunity for young people in South Africa, especially those with limited access to formal pathways, who can leapfrog traditional barriers through digital skills and AI fluency. With the right support, they could go from surviving disruption to shaping it.

How do AI skills affect youth employability?

By 2027, 43% of work-related tasks could be performed by machines, with data-driven decision-making, automation and smart systems becoming standard practice. AI and digital literacy are core enablers that will change employability due to the demand for technology-integrated roles. This is not to say that vocational roles are redundant, rather that they can be enhanced with technology.

In South Africa, the unemployment rate for those aged between 15 and 24 is above 50%, with a significant contributor being the persistent mismatch between the supply of entry-level labour and the demand for AI-augmented skills. Employers are increasingly seeking skills such as creativity, data literacy and critical thinking, the demand for which has surged by more than 70% since 2018.

Without digital literacy and AI enablement, young people are at risk of exclusion from emerging sectors such as fintech, digital marketing, green technologies and cloud-based services. To improve employability, AI must be integrated into general education, vocational training and informal learning platforms. Addressing rural connectivity gaps, digital infrastructure deficits and teacher capacity is also critical.

Can AI empower youth in a career or entrepreneurial context?

AI is rapidly emerging as both a skills amplifier and a business accelerator, and could enable new career paths, improve entrepreneurial success rates and lower the barriers to entry for innovation-driven ventures. Digitally enabled youth are using AI tools to launch businesses in areas such as e-commerce, logistics, agri-tech and freelance creative services. Chatbots, marketing automation platforms and AI-based financial tools allow for lean business models and reduced operating costs.

In South Africa, community-linked youth enterprises have begun incorporating customer relationship management systems and cloud-based inventory tools to scale operations and improve customer engagement. Across the globe, surveys show that around 54% of Gen Z respondents aspire to be entrepreneurs, with 82% using AI tools regularly and 98% expecting AI to influence their future work. The entrepreneurial promise of AI lies in its democratising force. Those who don’t have access to training, devices or mentorship will remain excluded from its benefits.

Do youth with strong AI/digital skills have better employability and entrepreneurial abilities than those without?

Young people with digital and AI proficiencies are more likely to access formal employment, secure higher incomes and navigate dynamic job environments. In entrepreneurship, AI-equipped youth can automate business functions, manage customer relationships or navigate the basics. Those without such skills are often confined to informal or subsistence livelihoods. This is particularly evident in rural and underserved communities.

Reporting by Forbes magazine shows that many next generation workers use generative AI for content creation, idea testing and business modelling, giving them an edge in both employment and entrepreneurship. Therefore, the difference is not only in technical capacity but also in confidence and adaptability. AI-literate youth are more resilient to change and better able to monetise their capabilities.

Can and should AI and digital skills replace essential human traits in the workplace?

AI should never replace core human traits like critical thinking, ethical judgement and problem-solving. These skills are critical for interpreting, questioning and ethically applying AI outputs. Studies suggest that excessive reliance on AI can impair deep thinking. A Microsoft-Carnegie Mellon study found that as AI support increases, human critical thinking often declines, prompting concerns over “cognitive atrophy”.

To this end, we emphasise the importance of metacognition (thinking about one’s thinking) as a future-facing skill. To build workplace resilience, young professionals must learn to work with AI, not be displaced by it. Training must focus on hybrid capacity: using AI tools while exercising ethical oversight and critical interpretation. This includes understanding how algorithms work, detecting bias and making context-sensitive decisions.

Who makes the better employee: tech-savvy or socially skilled individuals?

In the modern workplace, strong interpersonal competence outweighs isolated technical mastery. While digital and AI skills are vital, they are teachable. Interpersonal skills like emotional intelligence, collaboration, listening and adaptability are foundational to team performance and leadership effectiveness.

Our research shows that creativity, communication and collaboration are among the top skills that South African employers seek. A technically capable employee who cannot function well with others may stall projects, create friction or disengage clients. Conversely, those with strong interpersonal skills often enhance team dynamics, retain institutional knowledge and contribute to culture and morale.

For youth, the lesson is clear: soft skills are hard currency in the workplace. Developing empathy, feedback literacy and inclusive communication styles is as important as mastering code or data dashboards.

A phased approach to developing AI skills

Acquiring digital skills requires structured, stage-based learning. Stage 1, digital literacy, involves the basic use of digital tools, safe browsing, and foundational knowledge of devices and platforms; stage 2, digital fluency, enables content creation, platform integration and collaboration across digital systems; and stage 3, AI readiness, requires critical data interpretation, ethical judgement, algorithmic awareness and the ability to work with AI tools strategically.

Most young people, especially in marginalised communities, do not progress past stage one. Without sustained support, infrastructure access and mentoring, they remain digitally excluded. To this end, AI must be embedded within values-based learning, promoting critical reasoning, bias detection and responsible innovation. Gen Z wants to work with organisations that align with their values. Ethics, not just efficiency, matters.

Policymakers, educators and employers must co-create an ecosystem that supports every step of the digital skills journey. The future of work will be human-tech integrated. Empowering youth means preparing them to lead – not follow – in this new paradigm.

To this end, as technologies accelerate, we don’t need to beat AI. We need to work with it; to reclaim what makes us human.

Disclaimer: The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of the University of Pretoria.

   By Dr Sean Kruger, a senior lecturer at the Centre for the Future of Work, University of Pretoria