Employers concerned AI-use misrepresents student skills

Students are falling short in work readiness, a report from the Institute of Student Employers (ISE) has shown, with additional concerns raised by employers over AI misrepresenting student abilities.
 
ISE’s annual Student Development survey found around half of employers are concerned that graduates (48%) and school and college leavers (52%) who use AI in the selection process misrepresent their abilities.
 
While candidates using AI to apply for jobs led to record job applications, most of those starting out on their careers in 2025 will have studied under lockdown conditions and had less access to work experience opportunities.
 
ISE’s survey found many employers are concerned that their student hires are less prepared for work than previous intakes.  In particular, concerns over essential communication and interpersonal skills have significantly increased.
 
In 2025, 54% of employers reported that graduates did not meet expectations in self-awareness (up from 43% in 2024 and 35% in 2023), while 46% reported concerns about resilience (up from 37% in 2024 and 30% in 2023). Work-appropriate verbal communication was a concern for 22% (up from 17% in 2024 and 7% in 2023).
 
For school and college leavers, more employers reported unmet expectations in key areas. In 2025, 48% of employers highlighted concerns about resilience (up from 35% in 2024 and 25% in 2023), while 43% cited self-awareness (up from 31% in 2024 and 33% in 2023).
 
Additionally, concerns about work-appropriate verbal communication rose to 42% in 2025 (up from 29% in 2024 and 22% in 2023), and concerns about written communication rose to 46% (up from 28% in 2024 and 2023).
 
For other technical and analytical skills such as problem solving, the performance of graduates and school and college leavers broadly met the expectations of the majority of employers.
 
A lack of work experience is likely to adversely impact the performance of students when they embark on their careers. The survey found that most employers (77%) agreed that graduates who completed an internship or placement arrived with better skills and attitudes than those who hadn’t had this kind of opportunity.
 
Stephen Isherwood, joint CEO of ISE, commented: “When employers take on new hires whose skills are not fully aligned with their performance during recruitment it creates a no-win situation for everyone. At best, the training process is disrupted, at worst, the candidate finds themselves in the wrong job.
 
“It’s important that students are genuine about their capabilities, but we need to do more to boost confidence in their abilities. Undoubtably work experience makes better hires. It is the single most valuable step a student can take to improve their employability. It will help develop the essential skills businesses want and employers like to hire former interns, so students may just find themselves with a job at the end of it.”