AI is taking entry-level jobs from Gen Z, stunting business growth

• Key Insight: Learn how AI is eliminating traditional entry-level tasks and forcing talent model redesigns.  
• What's at Stake: A shrinking junior talent pool threatens long-term leadership succession and innovation capacity.  
• Supporting Data: Entry-level U.S. job postings fell 35% year-over-year, Revelio Labs survey.  
  Source: Bullets generated by AI with editorial review

For years tech experts have stressed that AI couldn't take peoples' jobs, but according to new data, artificial intelligence is responsible for young people struggling to kick start their careers.

Postings for entry-level jobs in the U.S. have fallen 35% over the past year, according to a recent survey from workforce intelligence firm Revelio Labs, with AI playing a major role in the decline. While the shift in job availability has signaled a rapid and successful technological adoption, it also risks worsening an already challenging job market for young people. Companies ramping up their AI use might also be unintentionally undermining their innovation goals by weakening their long-term talent pipeline.  

"We know that AI can realistically do much of what entry-level talent used to do and much faster and cheaper than any human," said Annie Rosencrans, director of people operations at HR software company HiBob. "The challenge all businesses are facing is that if we don't hire entry-level talent, what will that lead to in the future? How do we develop new and existing employees with this changing landscape?"

Read more: Why Gen Z's AI skillset isn't translating to the workplace

Traditionally, entry-level jobs were a role designated to give junior employees space to build skills, judgment, and hone and develop their professional instincts through simpler, more administrative tasks, Rosencrans said. But as automation and AI reduce the need for those same entry-level responsibilities, organizations have begun rethinking where junior talent fits, and young talent has taken note. In fact, according to a survey from online marketplace Fiverr, 56% think traditional employment will become obsolete in the future with only 14% now expressing the desire to work for a well-known corporation.

The immediate repercussions of young people's disinterest may not seem concerning to leaders now because the workforce is still robust enough to support the loss. However, according to Rosencrans, the long-term effects of a dwindling early-career talent pool could have long-term consequences that won't be evident until it's too late. 

"Senior people today are going to retire and the mid-level employees of today may grow into those roles, but who's going to fill that mid level gap when they do? No one can take on leadership if we haven't developed people from a young age," she said. "If companies really want to be around for the long haul, they need to find a way to make a home for junior people." 

Young talent still valuable

One of the biggest differentiators and strengths incoming talent has is that younger generations such as Gen Z and Gen Alpha are already considered "AI native." Innovative tech tools are part of their daily routines, meaning they bring a level of creativity and fluency that more experienced workers may not have. Tapping into that technological instinct can be a powerful advantage for companies, Rosencrans said. For example, at HiBob, the company piloted a 90-day juniors program where it rotated early-career hires across functions as a trial period. The initiative resulted in about 80% of participants being hired full time, and demonstrates the importance and ROI of continuing to invest in young talent and support their careers.  

Read more: 4 tips for recruiting entry-level talent

"We are continuing to invest in junior talent because we want our company to be around 10 to 20 years down the line," Rosencrans said. "[To do that] we knew we had to go through some short-term loss for long-term gain." 

In order to recruit and retain young talent, Rosencrans urges leaders to create or expand mentorship programs and opportunities, invest in professional development and education benefits, as well as make AI skilling and upskilling a core part of business operations. 

"We still need final decision makers and people to look at the full picture in a way that unless you're living and breathing every day in an organization you wouldn't know," Rosencrans said. "I believe that no matter how effective and skilled AI tools become, the human element cannot be fully replaced by technology."