Introduction: The AI-Hiring Conundrum
Artificial intelligence (AI) is no longer a buzzword—it’s a transformative force in the workplace. As organizations seek efficiency and scalability, one major area under scrutiny is human labor, especially in roles that can be automated. A recent World Economic Forum survey revealed that 40% of employers plan to reduce their workforce in areas where AI can take over.
This shift has sparked a vital question: Is AI making entry-level roles obsolete, and if so, what does this mean for new graduates entering the job market?
The Numbers: A Shift in Hiring Trends
SignalFire, a data-driven venture capital firm, has uncovered early signs of this shift by analyzing hiring behaviors across 600 million professionals and 80 million companies via LinkedIn data.
Their 2024 study showed that:
Big tech firms cut graduate hiring by 25% compared to 2023.
Startups reduced grad hiring by 11% over the same period.
Meanwhile, experienced hires (2–5 years of experience) saw a 27% increase at big tech companies and a 14% rise at startups.
These numbers highlight a clear pivot: companies are prioritizing experienced professionals over fresh graduates—a trend that may be partially driven by AI integration.
Why Entry-Level Roles Are at Risk
Entry-level jobs typically involve repetitive and low-risk tasks—ideal candidates for automation. Whether it’s data entry, basic research, or routine coding, generative AI tools are proving capable of handling them efficiently and at scale.
Asher Bantock, Head of Research at SignalFire, explained that while AI might not be the sole reason for reduced graduate hiring, there’s “convincing evidence” of its significant influence.
AI’s Expanding Capabilities in the Workplace
From debugging software to conducting financial analysis and installing complex tools, AI systems have matured beyond basic automation. Tools like ChatGPT, GitHub Copilot, and AutoGPT are already being integrated into tech workflows—doing in minutes what junior employees once did in hours.
This trend has implications not just for hiring, but also for salary structures and career progression within organizations.
Case Study: Rogo and the Financial Analysis Revolution
Gabe Stengel, founder of Rogo, a startup leveraging AI for financial analysis, exemplifies this shift. At the recent Newcomer fintech summit, he shared how Rogo’s platform replicates much of the work he did as a junior analyst at Lazard.
“We can put together the materials, diligence the company, look through their financials,” Stengel said. “It does almost everything I used to do.”
Even large investment banks like Goldman Sachs and Morgan Stanley have explored cutting junior hiring and reducing salaries in light of AI-driven productivity gains, as reported by the New York Times.
What This Means for New Graduates
This creates a challenging paradox for new graduates:
You need experience to get a job, but you need a job to gain experience.
While this issue isn’t new, AI is intensifying the problem. Many roles that once served as stepping stones into the industry are vanishing or evolving rapidly.
The Upside: Demand for Experienced Talent
It’s not all doom and gloom. As AI handles more grunt work, there’s increased demand for strategic thinking and creative problem-solving—skills more often found in experienced professionals.
Big tech companies are still actively hiring talent with 2–5 years of experience, signaling that while entry points may be shifting, growth opportunities remain strong for those who adapt.
Actionable Advice: How to Future-Proof Your Career
Heather Doshay, People & Talent Partner at SignalFire, offers this advice:
“AI won’t take your job if you’re the one who’s best at using it.”
Here are steps new grads can take today:
Master AI tools like ChatGPT, Midjourney, and Copilot.
Develop hybrid skills—combine technical knowledge with creativity or strategic thinking.
Pursue micro-experiences through internships, freelance gigs, or AI-driven side projects.
Stay informed via trusted platforms like Trenzest, which offers ongoing insights into automation, business trends, and digital skills.
Conclusion: Adaptation Over Obsolescence
The job market is evolving. While AI may close some doors, it opens new ones for those willing to learn, adapt, and innovate. Employers are looking not just for degrees, but for individuals who can work with AI, not be replaced by it.
At Trenzest, we’re here to help you navigate this transformation. Whether you’re a recent graduate, hiring manager, or entrepreneur, our content and tools are designed to equip you for the future of work.
