AI Impact on Entry-Level Jobs

Generative AI is changing the job market, especially for entry-level positions. Some executives believe AI could eliminate jobs typically obtained after graduation.

The CEO of Anthropic, Dario Amodei, told Axios that AI could cut half of all entry-level white-collar jobs, potentially raising overall unemployment to 20% within five years. One reason for this prediction might be to promote the capabilities of his company’s AI model, Claude, suggesting that its power could eliminate an entire level of corporate jobs, thus encouraging people to buy it.

Amodei’s remarks coincided with his company’s unveiling of a new version of Claude, which he claimed could code unassisted for hours. OpenAI’s CEO, Sam Altman, has used a similar approach. Others, including Steve Bannon, echoed Amodei’s warning, stating that automated jobs would be a significant issue in the 2028 US presidential election.

The Washington Post reported in March that over a quarter of US computer programming jobs disappeared in the past two years, linking this downturn to the release of ChatGPT in late 2022. Shortly before Amodei’s comments, a LinkedIn executive shared similar concerns in a New York Times essay, noting growing signs that AI threatens many entry-level jobs for young workers, according to LinkedIn’s chief economic opportunity officer, Aneesh Raman.

The US Federal Reserve's observations on the job market for recent college graduates in the first quarter of 2025 were not encouraging. Their report indicated a noticeable deterioration, with the unemployment rate jumping to 5.8%—the highest since 2021—and the underemployment rate rising sharply to 41.2%. The Fed did not specify a cause.

The most likely outcome is that companies will redefine entry-level jobs, finding a middle ground between extreme AI impact and pre-ChatGPT conditions. AI familiarity will likely be necessary, similar to Microsoft Office, and employers will expect higher productivity. For example, junior software engineers might be expected to produce significantly more code if AI handles most of the coding tasks.

Microsoft CEO Satya Nadella claimed in late April that AI writes 30% of Microsoft’s code. While this might be the future of software development, it’s also possible that Nadella is exaggerating to promote his company's AI gains. Meta’s Mark Zuckerberg has stated that his company will no longer need mid-level coders by the end of 2025. Meta subsequently announced a 5% staff reduction.

The immediate adjustment is the challenge. Recent graduates lack AI experience, and employers are unsure what they need from AI. Companies are not replacing departing workers, hoping AI will eventually perform those functions.

Journalism could be an early indicator. Entry-level journalism often involves aggregating news, a task well-suited for AI. Business Insider laid off 20% of its staff, with CEO Barbara Peng stating the newsroom would become “AI-first”. Axios requires managers to justify why AI cannot perform a job before approving it, with a disclosure that Axios stories are written and edited by humans, suggesting that Axios editors are aware that AI's involvement in writing could be bad for the brand. The executives at Axios may also be waiting to fill positions until AI is able to assume those responsibilities.