Over 40% of companies plan to fill junior roles with AI
A new report from the British Standards Institution (BSI) suggests artificial intelligence (AI) will continue to cut entry-level jobs.
The BSI surveyed more than 850 business leaders across eight countries, including Australia, the United Kingdom, and the United States.
Nearly half (43%) of bosses expect to replace junior roles or entry-level jobs with AI, either by cutting jobs or reducing recruitment for new starters.
The report reveals the major impact AI already has on entry-level positions. Business leaders say that one in four (39%) junior roles in their organizations have been reduced or cut due to AI, which can now perform admin and briefing tasks or conduct research.
The findings come days after a report from Senator Bernie Sanders predicted that AI could erase nearly 100 million low-wage and entry-level jobs over the next 10 years.
A report that Signal Fire published in May suggests that even the tech industry, well-known for attracting young talent, is slowing down hiring straight out of college.
New grads now account for just 7% of hires in big tech, down 25% from 2023. They also make up under 6% of hires in startups.
Even if AI replaces workers, it doesn't mean it will perform as efficiently as humans.
Swedish tech giant Klarna made headlines for plans to lay off about 40% of its staff to replace human employees with AI. The company later reversed the decision, citing declining customer service quality after AI agents didn't deliver.
Bosses think they are replaceable
Business leaders seem well aware of the implications that the technology's application will have on younger generations.
As many as 56% of bosses say they are lucky to have started their career before AI transformed their role or industry.
Four in ten (43%) acknowledge they would not have developed the skills they have today if AI tools had been around when they started.
They aren't overly optimistic about their future either. One in four (28%) do not expect their current job or role to exist by 2030, as AI could replace them.
