AI's Impact on Tech: Entry-Level Jobs Disappearing, New Study Reveals

A recent study highlighted by TechCrunch suggests that Artificial Intelligence (AI) is already reshaping the tech industry by reducing entry-level job opportunities. As companies increasingly adopt AI tools to automate routine tasks, new graduates and early-career professionals are finding it harder to secure positions that traditionally served as stepping stones into the sector.

The research, conducted by SignalFire, a data-driven venture capital firm, analyzed job movements across over 600 million employees and 80 million companies on LinkedIn. Their findings indicate a noticeable decline in hiring for junior roles, with Big Tech companies cutting graduate hires by 25% in 2024 compared to the previous year. Startups, too, have reduced entry-level hiring by 11%.

AI's ability to handle tasks such as coding, data analysis, and financial reporting—often assigned to new hires—has led companies to prioritize experienced professionals over fresh talent. This shift is raising concerns about how aspiring tech workers will gain the practical experience needed to advance their careers.

Moreover, a survey from the World Economic Forum cited in the report found that 40% of employers plan to reduce staff in areas where AI can automate processes. This trend could exacerbate the challenges faced by recent graduates, who are already navigating a competitive job market.

While AI may be closing doors for some, it is also creating new opportunities in fields like data science and AI development. However, these roles often require specialized skills or prior experience, further limiting access for those just starting out.

As the tech landscape continues to evolve, industry leaders and educators are urged to adapt by focusing on upskilling programs and fostering AI literacy among students. Without intervention, the gap between emerging talent and industry demands may widen, potentially reshaping the future of work in tech.