AI Threatens Entry-Level Jobs Essential for Gen Z Career Launches, LinkedIn Exec Warns

As millions of students prepare to graduate this spring, their chances of securing a first job to launch their careers are looking increasingly uncertain.

Along with a slowing economy marked by tariff-related uncertainty, artificial intelligence is threatening traditional entry-level roles that have historically helped young workers gain experience, warns LinkedIn’s chief economic opportunity officer, Aneesh Raman. He likened the shift to the decline of manufacturing jobs in the 1980s.

“Now, it’s office workers who are facing the same technological and economic disruptions,” Raman wrote in a recent op-ed for The New York Times. “The first rung of the career ladder is breaking.”

AI tools are already handling tasks like basic coding and debugging, roles that junior software developers once relied on to gain experience. AI is also taking over tasks traditionally performed by young employees in sectors such as law and retail. Additionally, reports suggest Wall Street firms are considering major cuts to entry-level hiring.

While the unemployment rate for college graduates has been rising faster than for other workers in recent years, Raman noted, there’s no definitive evidence yet that AI is directly causing the weak job market.

However, businesses are not eliminating entry-level roles entirely. Executives still value fresh ideas from young workers, and AI has even allowed some junior employees to take on more advanced tasks earlier in their careers.

Yet, the changes currently affecting certain sectors are expected to spread to others, with office jobs projected to feel the greatest impact, according to Raman.

“While the tech sector is experiencing the first waves of change, as AI becomes widely adopted in this field, the erosion of traditional entry-level jobs is expected to extend to industries like finance, travel, food, and professional services,” he said.

To address these challenges, Raman advocates for incorporating AI into college curricula and for companies to give junior roles more high-level responsibilities.

Some companies are already adjusting to the new AI landscape. Jasper.ai CEO Timothy Young told Fortune that “the commoditization of intelligence” means hiring top talent is less critical than developing staff with management skills.

“Young employees have a lot of potential, but they can’t be leveraged the same way they were in the past,” Young said, emphasizing the importance of curiosity and resilience in job candidates.

Indeed CEO Chris Hyams echoed similar sentiments at Fortune’s Workplace Innovation Summit, stating that while AI can’t fully replace jobs, it can handle 50% or more of the tasks in about two-thirds of all roles.

However, not all companies are fully committed to replacing humans with AI. Language-learning app Duolingo and fintech company Klarna have recently reconsidered their aggressive AI replacement strategies.

Additionally, some studies show AI’s impact may not be as transformative as anticipated. An IBM survey revealed that 75% of AI initiatives fail to deliver their promised ROI. A study from the National Bureau of Economic Research also found that AI had little to no effect on earnings or working hours in industries heavily impacted by the technology.