AI use is shrinking some entry-level job paths for new graduates

In short: As companies use AI more, some of the starter tasks that used to train junior workers are being automated, which can make it harder for new graduates to get a first step on the career ladder.

What's going on

Research highlighted by the Financial Times says AI is increasingly handling repetitive work and basic analysis that often went to junior employees. That matters because these tasks were often the “on-ramp” into fields like accounting, finance, administrative support, customer service, and marketing.

A Harvard study looking at 62 million workers across 285,000 US firms found that companies adopting AI have reduced junior positions since 2023. Separate Stanford analysis found a 13% relative decline in employment for ages 22 to 25 in AI-exposed fields, while older workers gained.

At the same time, AI use is spreading quickly. Stanford’s 2025 AI Index reported that 78% of organizations use AI, up from 55% the year before. Some student surveys show anxiety about job prospects, even as some hiring managers say they expect new jobs to appear.

What to watch

The research suggests students may need to change how they prepare. One recommendation is to be careful about what you share online, since some recruiters use AI screening tools as a first filter (like an automated bouncer checking IDs). Another is to focus less on solo competition and more on collaboration, since employers value people who can adapt and work with AI tools.

A third idea is collective bargaining, which means workers negotiating as a group. Policy groups have argued this could help protect wages and fund training if entry-level work continues to shrink.

Source: Financial Times