AI reshapes entry level hiring in tech

AI tools speed up automation of junior tasks and shrink entry level openings for new graduates in the tech sector.

AI Upends Entry Level Hiring Halving New Grad Opportunities

Kenneth Kang, a computer science graduate in Portland, spent a year applying to more than 2,500 jobs and landed a role at Adidas after 10 months. His experience mirrors a broader squeeze as entry level roles become rarer, internships convert to fewer permanent positions, and employers expect more than the traditional on-the-job training. AI is accelerating this trend by taking on junior tasks and pushing firms to hire fewer beginners who need development.

Data from Handshake show traditional entry level postings fell about 15 percent last year. Internship conversion rates also slipped, with just 62 percent of interns receiving full-time offers in 2023–24, pushing overall conversion below 51 percent—the lowest in more than five years. Hybrid internships fared worse. Experts say the AI efficiency push is changing expectations, rewarding higher-level skills and possibly leaving new graduates with a tougher initial job search. Some scholars warn that a shrinking pipeline now could create a skills gap for the leaders of tomorrow.

The trend tests the old career ladder. If firms cut entry level hiring to save costs, they may suppress the very talent that drives growth and innovation in the long run. The pressure to meet short-term efficiency can erode the pipeline that produces managers, engineers, and specialists who later lead projects and companies.

Universities and employers will need to rethink training and pathways. Reskilling programs, integrated AI curricula, and new apprenticeship models could help, but they require investment and coordination. As work shifts toward specialized AI fluency, the debate moves from whether to use AI to how to prepare graduates to work with it effectively.

Highlights

The talent ladder is changing, and our approach to preparing workers must change with it.