The long-debated question of whether artificial intelligence will replace human labor is inching closer to reality, as new data suggests AI is already reshaping hiring patterns—particularly for new college graduates.
A recent survey by the World Economic Forum revealed that 40% of employers expect to reduce headcount in areas where AI can automate tasks. Now, researchers at venture capital firm SignalFire say they’re observing early signs of that shift, especially in the tech industry.
SignalFire, which tracks job activity across 600 million professionals and 80 million companies via LinkedIn, found that Big Tech companies reduced their hiring of recent graduates by 25% in 2024 compared to the previous year. Startup hiring of new grads also declined, though less sharply, by 11%. While SignalFire did not disclose precise hiring figures, a spokesperson confirmed the decline amounts to several thousand fewer jobs for recent grads.
At the same time, hiring of more experienced professionals is trending upward. Big Tech firms increased hiring by 27% for candidates with two to five years of experience, while startups boosted recruitment in that bracket by 14%.
The shift in hiring priorities underscores the growing impact of AI, which is increasingly capable of handling tasks traditionally assigned to junior staff. “There’s convincing evidence that AI is a significant contributing factor,” said Asher Bantock, head of research at SignalFire. Entry-level positions often involve routine work—coding, debugging, financial research, document prep—that generative AI now performs efficiently.
Gabe Stengel, founder of AI financial analyst startup Rogo, highlighted the point at a recent fintech summit, saying his product can now handle most of the work he used to do as an investment banking analyst. “We can put together the materials, diligence the company, look through their financials,” he said.
Although major investment banks have yet to publicly announce large-scale reductions in junior staff, internal discussions suggest some, including Goldman Sachs and Morgan Stanley, have contemplated significant cuts and pay adjustments, the New York Times reported last year.
This AI-driven shift has created a familiar but now more intense dilemma for new grads: without experience, they can’t get hired, and without a job, they can’t gain experience. Heather Doshay, people and talent partner at SignalFire, says the challenge is real—but not insurmountable. Her advice to graduates is to become proficient with AI tools. “AI won’t take your job if you’re the one who’s best at using it,” she said.
As AI continues to evolve, its growing role in the workplace is no longer a distant concern—it’s a present and disruptive force, especially for those just starting their careers.
