Artificial intelligence is beginning to reshape the job market, and entry-level roles in the technology sector appear to be among the most affected. Many companies are increasingly relying on AI tools such as Claude, GitHub Copilot, and OpenAI Codex to automate routine tasks that were once handled by junior engineers and fresh graduates. As a result, businesses are hiring fewer entry-level employees and redirecting resources toward more experienced talent.
A growing concern about this shift was highlighted by Ethan Choi, partner at Khosla Ventures, who recently discussed the changing hiring landscape on social media. According to Choi, even graduates from top institutions such as Stanford University are finding it difficult to secure jobs. He described the situation as a major structural change in the labor market, where the traditional pathway of “study in college and get a job” is starting to weaken.
Entry-level positions historically served as the training ground where graduates gained practical experience, built judgement, and developed industry skills. However, with AI tools now capable of performing tasks such as coding, documentation, analysis, and technical support, companies are questioning whether they still need to hire large numbers of junior employees.
Choi pointed out that society may be heading toward a mismatch between the number of graduates entering the workforce and the number of available roles. In his view, universities might be producing more graduates than the market currently demands, particularly in technology fields.
Sharp Drop in Fresher Hiring
Recent data suggests that the decline in entry-level hiring is significant. According to a report cited by Forbes, the share of fresh graduates among new hires at large technology firms has fallen dramatically. In 2023, roughly 25% of new hires were fresh graduates. Today, that figure has dropped to around 7%, compared with more than 50% before the pandemic.
This decline is largely attributed to the growing use of AI tools that allow companies to maintain productivity with smaller teams. Instead of hiring large numbers of junior engineers, firms are focusing on experienced professionals who can work alongside AI systems to deliver complex solutions.
Some Companies Reconsidering the Shift
Despite the trend, some organizations are beginning to reconsider whether reducing entry-level hiring was the right decision. IBM, for example, recently announced plans to increase entry-level hiring in the United States by 2026, even after previously predicting that AI would replace many back-office roles.
Researchers at Gartner warn that eliminating entry-level positions can lead to what they call “experience starvation.” If companies stop hiring junior employees, they may struggle in the future to develop experienced professionals and leaders who gain their expertise through years of on-the-job learning.
Even Elite Graduates Feeling the Impact
The hiring slowdown has also been observed by Xiaoyin Qu, a former executive at Meta. She noted that even students from top universities such as Massachusetts Institute of Technology and Stanford are struggling to find internships or entry-level roles.
According to her, companies are now focusing less on academic pedigree and more on demonstrable results, real-world skills, and measurable impact. In addition, many companies are cutting back on internships and junior engineering roles while raising the bar for specialised positions.
She contrasted the current situation with the past, when tech companies aggressively competed for computer science graduates by offering signing bonuses and fast job offers. Today, that environment has changed dramatically.
AI Leaders Acknowledge the Disruption
The growing influence of AI on employment has been acknowledged by industry leaders as well. Sam Altman, CEO of OpenAI, has said that AI will inevitably replace some jobs. However, he believes humans who adapt—especially those with creativity, judgement and problem-solving ability—will continue to play an essential role.
Similarly, Satya Nadella, CEO of Microsoft, has emphasized that qualities such as emotional intelligence, adaptability and collaboration will become increasingly important in the AI era.
A Job Market in Transition
Overall, the technology job market appears to be undergoing a significant adjustment. As AI tools become more powerful and widely adopted, companies are reassessing how they build teams and what kinds of skills they value most.
While this shift is creating challenges for new graduates today, many experts believe it also signals the emergence of new kinds of roles and skills that will define the future workforce in an AI-driven world
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