Is artificial intelligence (AI) starting to edge out human workers? That question has sparked countless debates—and now we may be seeing early signs of real change in the job market.
A recent survey from the World Economic Forum revealed that 40% of employers are planning to reduce staff where AI can take over repetitive tasks. It’s not just speculation anymore. SignalFire, a data-driven venture capital firm, believes AI’s impact on hiring is already showing up—especially for those just starting their careers.
Entry-Level Jobs Are Disappearing and AI Is Likely to Blame
SignalFire tracks job movements across 600 million professionals and 80 million companies on LinkedIn. Their latest data paints a worrying picture for fresh graduates entering the tech world.
In 2024, Big Tech companies hired 25% fewer recent grads compared to 2023. Startups also pulled back, with graduate recruitment dropping by 11%. While SignalFire didn’t disclose the exact number of hires lost, a company spokesperson confirmed it was in the thousands.
Why the sharp drop? The likely culprit: AI. Asher Bantock, SignalFire’s head of research, said there’s “convincing evidence” that generative AI is driving this shift. It’s not hard to see why. Entry-level roles tend to focus on predictable, low-risk tasks—things AI now handles quite well.
From writing code and debugging to conducting financial research and installing software, AI tools are automating what used to be standard junior responsibilities. With AI picking up the slack, there’s simply less need for companies to bring on a large wave of recent graduates.
Take Gabe Stengel, founder of the AI-driven financial analyst startup Rogo. Speaking at a fintech summit last week, he explained that Rogo’s platform now does nearly everything he once did as a junior analyst at Lazard. It can gather data, evaluate companies, and prepare diligence reports—all without a human analyst in the loop.
Even large investment banks, while not making official cuts yet, have reportedly explored reducing entry-level hires or slashing pay for junior staff. According to The New York Times, executives at firms like Goldman Sachs and Morgan Stanley considered trimming analyst hiring by up to two-thirds—because AI is making those roles far less demanding.
Experience Is the New Currency and AI Isn’t Taking That Away
While AI may be squeezing out entry-level roles, it’s also fueling a surge in demand for experienced talent. SignalFire found that in 2024, Big Tech firms increased hiring by 27% for professionals with two to five years of experience. Startups followed suit, growing mid-level hiring by 14%.
This trend creates a painful paradox for new grads: They need experience to get hired—but can’t gain experience without a job.
It’s not a new challenge, but AI is making it worse. Heather Doshay, SignalFire’s people and talent partner, believes the key is learning to work with AI. Her advice to early-career professionals is simple yet powerful: “AI won’t take your job if you’re the one who’s best at using it.”
As companies embrace automation, the most valuable candidates will be those who can master the tools—not compete against them.
