EY will retain interns for a year prior to extending a job offer to them.

      EY is introducing a paid Career Residency program that allows assurance interns to continue working part-time for 8 to 12 months after their eight-week internship. During their final year of college, they will work remotely on EY projects. Those who successfully complete the program and receive an offer will start as analysts instead of staff.

      The firm has determined that an eight-week period is insufficient. The new Career Residency will enable assurance interns to engage in part-time work remotely on actual projects while they complete their final year at university.

      The change is influenced by the role of AI in the workplace. Junior consultants previously focused on tasks that Errol Gardner, EY’s global head of consulting, refers to as “assembly” work, such as creating presentations, drafting proposals, and compiling information.

      The skills that remain are more complex to transmit in a short summer program. The residency aims to develop judgment, professional skepticism, critical thinking, collaboration, and communication through simulations and real EY projects instead of a set curriculum.

      There is an incentive upon completion. Residents who finish the program and receive an offer will advance to analyst positions, which is a step above the current starting point for new consultants, along with a salary increase linked to their performance and evaluation.

      According to EY, this initiative was in the works before the advent of new technology. The firm was reevaluating its internship model even before generative AI became prevalent, as noted by Ginnie Carlier, EY Americas chief talent and culture officer, but the technology has acted as a "catalyst" for these changes.

      However, this can also be interpreted less favorably. Entering the profession now requires eight weeks of internship followed by up to a year of part-time work before a permanent job offer is made.

      The demand for these positions is not a limiting factor. EY has reported receiving over 24,000 applications from students pursuing their CPA in the last year, extending 2,400 internship offers, and experiencing a 33% increase in applications year over year.

      What makes this situation intriguing is the contrasting approach taken by other firms. PwC has been hiring fewer consultants as AI alters similar job functions, presenting an alternative solution to the same issue.

      Both responses are indicative of a broader trend. AI is constricting the internship pipeline that previously transitioned students into employment, and research from Switzerland has identified a decrease in job advertisements aimed at entry-level candidates.

      EY has opted to extend the duration of its internship process rather than reduce the number of available spots, which is the more generous approach. Whether this will result in more capable juniors or merely delay the decision of how many employees are still needed remains to be seen in the upcoming two years.