Whether artificial intelligence has already begun replacing human labor has been a topic of contentious debate. While definitive conclusions remain elusive, recent data suggests AI may indeed be starting to influence hiring patterns, particularly for entry-level tech roles.
A recent report from the World Economic Forum revealed that 40% of employers intend to reduce their workforce in positions where artificial intelligence can automate tasks. Complementing this finding, researchers from the venture capital firm SignalFire have identified emerging signs that AI is reshaping hiring trends among technology companies.
Examining employment data collected from LinkedIn on over 600 million individuals and 80 million companies, SignalFire’s analysis discovered a notable decline in the recruitment of recent college graduates by tech firms. Specifically, in 2024, large technology companies hired approximately 25% fewer entry-level graduates compared to 2023. Similarly, startup companies recorded an 11% reduction in graduate hires during the same timeframe. Although exact numbers weren’t disclosed, SignalFire’s spokesperson characterized the decline as involving “thousands” fewer hires.
While numerous factors can influence hiring fluctuations, SignalFire’s head of research, Asher Bantock, emphasized that AI adoption is convincingly linked to this decline. Entry-level positions frequently involve routine, repetitive tasks — the very functions increasingly handled effectively by generative AI technologies.
In sectors such as financial services, the capabilities of AI platforms have already become quite advanced. Gabe Stengel, founder of the AI-driven financial analysis startup Rogo, highlighted at a recent industry event how artificial intelligence can now perform many of the analytical functions that early-career finance professionals traditionally handle, including diligence reviews, financial analysis, and preparing investment materials.
Despite these developments, major financial institutions, including investment banks such as Goldman Sachs and Morgan Stanley, have not publicly attributed significant reductions in junior analyst hiring to AI yet. Nevertheless, executives at these firms have previously acknowledged considering substantial cutbacks—potentially reducing their entry-level workforce by as much as two-thirds and lowering compensation packages, citing the decreased human effort required due to AI advancements.
Yet, the employment picture is nuanced. Even as demand for junior hires declines, SignalFire observed an increase in hiring of more experienced professionals. In 2024, big tech firms boosted recruitment of candidates having two to five years of experience by 27%, and startups raised their intake by 14% for the same experience range. As a consequence, new graduates face a deepening paradox: companies may be reluctant to hire them due to limited experience, yet young professionals require initial positions to gain that very experience. Heather Doshay, SignalFire’s partner focused on human resources and talent strategy, notes that while this dilemma is not entirely new, artificial intelligence has significantly amplified it.
Doshay advises young graduates to embrace AI technologies rather than fear them, stating, “AI won’t take your job if you’re the one who’s best at using it.”
