Is AI Already Shrinking Entry-Level Tech Jobs?
The AI Daily Brief (Formerly The AI Breakdown): Artificial Intelligence News and Analysis

Is AI Already Shrinking Entry-Level Tech Jobs?

podcasts

4 highlights

AI Impact on Entry-Level Hiring

  • AI is starting to impact job market, specifically entry-level hiring.
  • SignalFire's State of Talent Report 2025, based on data from 650M+ professionals across 80M organizations, shows entry-level hiring is collapsing.
  • A generational hiring shift is leaving new graduates behind due to smaller funding rounds, shrinking teams, fewer new grad programs, and the rise of AI.

AI Impact on Entry-Level Hiring

  • Companies are hiring less overall due to tighter budgets and shorter runways (Series A tech startups are 20% smaller than in 2020).
  • AI is contributing to a hiring reset; AI tools are automating routine entry-level tasks.
  • Companies are prioritizing high-leverage technical roles in machine learning and data engineering.
  • Non-technical roles (recruiting, product, sales) are shrinking, making it harder for early-career talent to break in.

The Changing Nature of Tech Jobs

  • Even if AI doesn't eliminate jobs outright, it significantly alters job roles.
  • Increased coding efficiency with AI may lead to more coding needs, similar to adding lanes to a highway without resolving traffic.
  • AI adoption may cause companies to raise output goals and become less forgiving about deadlines, changing job roles.

AI's Impact on Employees

  • AI's impact on employees ranges from dehumanizing to rehumanizing, depending on leadership decisions.
  • Companies need to articulate these decisions and engage with employees to gain buy-in.
  • Without engagement, there will be more combativeness.