A growing number of companies are freezing entry-level hiring as artificial intelligence (AI) reshapes the workforce, according to new research.
A recent survey of nearly 1,000 US business leaders by Resume.org found that 21% of companies have already stopped hiring entry-level workers because of AI. The findings suggest the shift could accelerate rapidly over the next two years.
By the end of 2026, 36% of companies say they will have stopped hiring entry-level employees, while 47% expect entry-level hiring to disappear at their company by 2027. The results reflect a broader transformation in how businesses structure their workforce as AI tools automate routine tasks and increase productivity.
Workforce analysts say the trend aligns with broader predictions about technological disruption in the labor market. According to the World Economic Forum’s projections summarised by Fair Play Talks, millions of jobs are expected to be disrupted or reshaped by emerging technologies over the coming decade.
AI IMPACTING ENTRY-LEVEL HIRING
The survey suggests artificial intelligence is a major factor behind the shift in hiring strategies. Among companies reducing entry-level hiring:
- 21% say AI is the sole reason they are eliminating roles
- 19% say AI is the primary driver
- 26% say AI is one of several contributing factors
Together, the data indicates that automation and AI-driven efficiencies are influencing how companies design their workforce. Entry-level roles are particularly vulnerable because they often involve routine tasks such as data processing, administrative work, or basic research, functions that AI systems increasingly perform.
IMPACT OF AUTOMATION
Beyond hiring freezes, some organisations say AI has already replaced existing roles. The survey found:
- 12% of companies say AI has already eliminated entry-level jobs
- 21% expect those positions to disappear before the end of 2026
Combined, roughly one-third of companies anticipate eliminating entry-level roles by the end of the year. For many companies, AI is enabling teams to operate with fewer junior staff by automating repetitive work and redistributing tasks among existing employees.
AI RESTRUCTURING OF MID- & SENIOR LEVEL ROLES
While entry-level workers appear most immediately impacted, the survey suggests the effects could extend across the organisational hierarchy. Currently:
- 11% of companies say AI has already eliminated mid-level roles
- 10% report the same for senior-level positions
By the end of 2026, those numbers are expected to increase to:
- 24% for mid-level jobs
- 26% for senior-level positions
The findings indicate that AI-driven restructuring may gradually reshape multiple layers of the workforce as companies integrate automation into business processes.
AI-SKILLED WORKERS
Even as companies reduce hiring in some areas, many are expanding recruitment in others. According to the survey:
- 47% of companies say they are hiring more technical or AI-focused workers
- 48% say they are hiring employees who can effectively use AI tools
Demand for AI-related skills is already creating talent shortages. Separate research highlighted by Fair Play Talks recently, shows many organisations are still struggling to recruit workers with the expertise needed to implement AI technologies.
ESSENTIAL AI SKILLS
Career experts say the findings highlight the growing importance of AI literacy across industries.
“Employees without AI skills risk being sidelined as technologies augment or replace traditional functions,” said Kara Dennison, Head of Career Advising at Resume.org. “AI skills matter for two reasons: relevance and leverage.”
Workers who know how to use AI tools effectively may be able to increase their productivity and remain competitive in a changing job market.
LONG-TERM IMPLICATIONS
Experts say the decline in entry-level hiring could have long-term implications for both workers and companies. They include:
1. A shrinking pipeline of future talent
Entry-level jobs have historically served as the training ground for future managers and specialists. If these roles disappear, organisations may struggle to develop leadership pipelines internally and may rely more heavily on external hiring. Workforce experts say companies may need to rethink career pathways as AI reshapes job structures. Explore discussions about the future of jobs and the impact of technological disruption on the evolving global labour market here.
2. Fewer pathways into professional careers
For many graduates, entry-level roles provide the first step into professional industries such as finance, technology, marketing and consulting. If those positions become less common, early-career professionals could face higher barriers to entering the workforce. Companies may increasingly rely on internships, apprenticeships, and contract work as alternative entry routes.
3. Growing workforce skills gaps
As companies prioritise employees who can work with AI technologies, workers without digital or technical skills may face increasing challenges. Experts warn that this shift could widen skills gaps unless businesses and education systems invest more heavily in training programs focused on AI literacy and digital capabilities.
4. Operational risks for companies
Reducing junior roles may also create operational challenges. Entry-level employees often perform foundational work that supports larger teams. Without them, organisations may need to redesign workflows or redistribute responsibilities to more senior staff. Some analysts also warn that fewer entry-level positions could reduce mentorship opportunities and limit knowledge transfer within organisations.
GUIDE FOR NAVIGATING AI-DRIVEN HIRING CHANGES
As AI reshapes hiring patterns and workforce structures, both companies and workers are adapting to a rapidly changing labour market. The survey highlights a transition period in which organisations are redefining job roles while employees rethink career development strategies.
What Employers Can Do
Redesign entry-level roles rather than eliminate them: Instead of removing entry-level positions entirely, companies can redesign them to focus on responsibilities that require human judgment, creativity, and collaboration.Junior roles may increasingly involve tasks such as overseeing AI systems, interpreting outputs, and applying human expertise to automated workflows.
Invest in AI training for employees: Companies can increase productivity by helping employees learn how to use AI tools effectively. Training programmes focused on AI literacy, automation tools, and prompt-based systems can help employees integrate AI into everyday workflows.
Create hybrid human-AI roles: Many organisations are creating jobs where employees work alongside AI systems rather than being replaced by them. These roles often involve managing AI tools, validating outputs, and applying human decision-making to AI-assisted processes.
Maintain pathways for early-career talent: Entry-level hiring has traditionally been a key part of building leadership pipelines.Companies may need to develop alternative entry routes such as internships, apprenticeships and structured training programmes.
What Employees/Job Seekers Can Do
Build AI literacy: Workers do not necessarily need to become AI engineers, but understanding how to use AI tools effectively is becoming increasingly valuable. Learning how to interact with AI systems, write prompts and evaluate outputs can significantly improve productivity.
Develop complementary human skills: Skills that complement AI – such as creativity, communication, leadership and strategic thinking – are likely to remain in high demand. These capabilities are difficult for AI systems to replicate.
Commit to continuous learning: Technological change means workers will likely need to update their skills throughout their careers. Online courses, certifications and professional development programmes can help employees remain competitive.
Learn to work with AI rather than compete with it: Many jobs are shifting toward AI-assisted workflows. Workers who know how to integrate AI tools into their work – whether in research, writing, data analysis or project management – will gain a significant advantage.
PREPARING FOR THE AI WORKFORCE
Artificial intelligence is expected to reshape labour markets in complex ways. While some roles may decline, others will emerge that combine technological expertise with human insight. For employers, the challenge will be balancing automation with long-term talent development. For workers, the key may be learning how to collaborate with AI tools rather than compete with them.
As the workforce evolves, organisations that invest in both technology and people may be best positioned to succeed in an AI-driven economy.
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