The corporate ladder is becoming increasingly difficult for new graduates to climb as entry-level job postings continue to decline and internships convert to fewer permanent roles. Artificial intelligence (AI) is accelerating this trend by automating junior-level tasks, forcing companies to prioritize skilled candidates over those with traditional training.
According to data from SignalFire, hiring for new graduates in the 15 largest tech companies fell by over 50% since 2019. This shift has left many graduates struggling to find employment, with some having been on the job hunt for two years.
Experts warn that while AI may bring short-term cost savings, it could weaken the leadership pipeline in the long run. “If a lot of firms are cutting entry-level jobs, they might miss out on talent that will create their pipeline going forward,” says Tristan L. Botelho, associate professor of organizational behavior at Yale School of Management.
The rise of AI is also changing the way we learn and develop skills. A study from MIT found that large language model (LLM) use can reduce neural engagement and harm learning in students. As a result, educational systems and the job market are being forced to adapt to a generation of AI-boosted talent.
Young graduates are taking matters into their own hands by starting their own projects and gaining experience outside of traditional employment. For example, computer science graduate Kenneth Kang founded a startup while on the job hunt to build his skills and résumé.
Ultimately, the future of leadership depends on companies’ ability to adapt to AI-driven changes in the workforce. As Nick South, managing director at Boston Consulting Group, notes, “At the point in time for an individual, this is incredibly disruptive… We need to help people with reskilling.”
Source: https://fortune.com/2025/08/15/ai-gutting-next-generation-of-talent