Artificial Intelligence (AI) is increasingly taking over professions, particularly in software engineering and customer service. A recent Stanford study found that entry-level employment in these fields has plummeted by 13% since 2022. The decline is more pronounced for tech graduates, with software developer jobs falling by almost 20% since ChatGPT’s public release.
AI experts warn that the situation will worsen over the next five years, potentially wiping out half of entry-level white-collar jobs. Software engineers are at risk due to AI tools developed by their peers and competitors. According to Stanford’s AI Index Report, top-performing AI systems can now solve 4.4% of software engineering problems measured, a rate that is expected to increase.
The job market shift has left many computer science graduates with uncertain futures. While AI may offer lucrative opportunities in fields like machine learning, the trend shows that even college degrees are no longer guarantees of employment. In fact, professions with high percentages of college graduates have seen declining employment rates.
Tech firms, including startups, are scaling back their hiring of new graduates. Only 7% of hires at Big Tech companies now consist of recent graduates, down from 15% pre-pandemic. Meanwhile, seed-stage companies have reduced staff by 21% since 2020. However, some industries appear less vulnerable to AI disruption, such as healthcare and production operations.
While the outlook may seem bleak, experts caution that companies must maintain entry-level positions to ensure a stable workforce for mid-career professionals. “You cannot get a mid-career workforce unless you also have an early-career workforce,” said Emily Schaffer, an executive at YUPRO Placement.
Source: https://sfstandard.com/2025/08/27/ai-entry-level-jobs-decline