EY will retain interns for a year prior to extending a job offer.
EY is introducing a paid Career Residency that allows assurance interns to remain employed part-time for an additional 8 to 12 months after their eight-week internship, working remotely on EY projects as they complete their final year of college. Those who finish the program and receive an offer will start as analysts instead of staff positions.
The firm has concluded that eight weeks is insufficient time. The new Career Residency will keep assurance interns engaged for an extra 8 to 12 months, part-time and remotely on real projects while they finish their university studies.
This change is in response to the impact of AI. Junior consultants previously handled what Errol Gardner, EY’s global head of consulting, refers to as “assembly” tasks, such as assembling presentations, drafting proposals, and synthesizing information.
What remains is more complex and difficult to teach within a short summer program. The residency emphasizes skills like judgment, professional skepticism, critical thinking, collaboration, and communication, which will be developed through simulations and real EY projects rather than a set curriculum.
There is a benefit at the end of the residency. Those who complete it and receive offers will join as analysts, a level above the current starting point for new consultants, along with a pay increase linked to performance assessments.
According to EY, this initiative was conceived before the advent of generative AI. The firm was already reassessing its internship model prior to the technology's emergence, as noted by Ginnie Carlier, EY Americas chief talent and culture officer, but AI has acted as a “catalyst” for this change.
A less favorable interpretation of this situation is that entry into the profession now requires an eight-week internship, followed by up to a year of part-time work before a permanent position is offered.
The demand for these roles is not a limiting factor. EY reports that it received over 24,000 applications from CPA-track students in the past year, made 2,400 internship offers, and saw a 33% year-on-year increase in applications.
What makes this situation noteworthy is the alternate approach being taken by other firms. PwC has been hiring fewer consultants as AI continues to transform similar tasks, representing another potential solution to this challenge.
Both firms are reacting to a measurable trend. AI has been narrowing the internship pipeline that traditionally transitioned students into employees, and research from Switzerland indicates a decline in job advertisements aimed at entry-level candidates.
EY has opted to extend the training period rather than reduce the number of interns, which is the more accommodating choice. The impact of this decision on the development of junior consultants, or whether it merely delays the decision on the quantity of junior talent that firms require, will be revealed over the next two years.
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EY will retain interns for a year prior to extending a job offer.
EY will retain assurance interns on a part-time basis for 8 to 12 months following their internship, as AI takes over the junior tasks that new employees once learned.