AI may already be reducing technology entry-level work, new research suggests

If getting AI to replace human labor has become the subject of much debate.

It’s still hard to say for certain if AI begins to take over previously human roles. World Economic Forum It turns out that 40% of employers are planning to cut down on staff where AI can automate tasks.

Signalfire researcher, a Data-driven VC companies This is tracking the employment movements of over 600 million employees and 80 million companies on LinkedIn, and we believe it could see the first signs of AI’s impact on employment.

Analyzing employment trends, SignalFire noticed that tech companies are hiring more recent university graduates than 2023 or 2024.

Specifically, SignalFire Found The large tech company reduced employment for new graduates by 25% in 2024 compared to 2023. Meanwhile, recruitment of graduates at startups fell by 11% compared to the previous year. SignalFire doesn’t exactly reveal the number of graduates recruited according to the data, but the spokesman said it was thousands.

Certainly, the adoption of new AI tools may not fully explain the dip in recent graduate recruitment, but Signalfire’s research director Asher Bantock says there is “convincing evidence” that AI is a key contributor.

Entry-level jobs are often susceptible to automation as they involve routine, low-risk tasks that are handled properly by the generated AI.

AI is new Coding, debugging, Financial researchand Installing the software Capacity can mean that a company needs fewer people to do such work. The AI’s ability to handle certain entry-level tasks means that some new graduates’ jobs can quickly become obsolete.

Gabe Stengel, founder of AI Financial Analyst startup Rogo, began his career at Lazard Investment Bank, helping large pharmaceutical companies buy biotech startups. Rogo’s Tools ““We can put together the materials, work hard on the company and look into their finances,” Stengel said last week at the Newcomer’s Financial Technology Summit.

While most large investment banks have not explicitly reduced analyst employment through AI, executives at companies like Goldman Sachs and Morgan Stanley previously thought to hire junior staff at up to two-thirds. New York Times It was reported last year.

The threat of AI to skilled work is real, but the need for tech companies for experienced professionals is still rising. According to a report by SignalFire, large tech companies have increased employment of professionals with 2 to 5 years of experience by 27%, while startups have hired over 14% of individuals in the same seniority range.

A frustrating paradox appears in recent alumni. They cannot be hired without experience, but they cannot gain experience without being hired. This dilemma is nothing new, but Signafire people and talent partner Heather Doshay says that AI has been exacerbated considerably.

Dashay’s advice for new graduates: Master AI tools. “If it’s best to use it, AI won’t take on your job,” she said.