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43% of Companies Plan to Replace Jobs With AI (Guess Which Ones Are First)

December 16, 2025
5 min read
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Here's a stat that should make every talent leader pause: according to a Korn Ferry report, 43% of companies plan to replace roles with AI, with operation/back-office staff (58%) and entry-level positions (37%) being the top targets.

Read that again. More than one in three entry-level jobs that exist today might not exist in two years.

For recruiters, this isn't just a trend to monitor—it's a fundamental shift in what hiring will look like. And we're not talking about some distant future. This is happening right now.

Which Jobs Are Getting Replaced

Let's be specific about what's on the chopping block:

Back-Office Operations (58% replacement target):

  • Data entry clerks
  • Invoice processing specialists
  • Basic accounting roles
  • Administrative coordinators
  • Document processing positions

Entry-Level Positions (37% replacement target):

  • Junior analysts (the ones doing Excel grunt work)
  • Customer service representatives (replaced by chatbots and AI agents)
  • Entry-level marketing coordinators (AI can schedule social posts and draft emails)
  • Research assistants (AI can synthesize information and generate reports)
  • Basic QA testers (automated testing is getting really good)

The pattern is clear: if the job is repetitive, rules-based, and doesn't require complex human judgment, it's vulnerable to automation.

Why This Matters for Recruiting

This isn't just an operations or finance problem—it's fundamentally changing what recruiters will be hiring for.

The Entry-Level Pipeline Is Breaking: Traditionally, companies hired entry-level workers who learned the business, developed skills, and progressed into mid-level and senior roles. If you eliminate entry-level positions, where do future senior employees come from?

Mid-Level Hiring Gets Harder: Companies will increasingly need to hire people who can perform at mid-level from day one, because there's no internal pipeline developing junior talent anymore. That makes recruiting more competitive and expensive.

Skills Requirements Change: The jobs that remain will require different skills—more critical thinking, creativity, problem-solving, and complex communication. Less "can you process this form" and more "can you make strategic decisions with ambiguous information."

College Recruiting Becomes Complicated: What do you do with campus recruiting when you're not hiring entry-level roles anymore? Some companies are pivoting to internship-to-hire models where interns work alongside AI tools, but that only works for a fraction of graduates.

The Immediate Impact: 2026 and Beyond

We're already seeing early signals of this shift:

Job postings for entry-level administrative and coordinator roles are down 18% year-over-year in Q4 2025. Meanwhile, postings for "AI-augmented" roles (positions where humans work alongside AI tools) are up 34%.

Companies are investing heavily in AI tools that can automate tasks previously handled by entry-level employees:

  • Customer service AI agents that can handle routine inquiries, escalating only complex cases to humans
  • Document processing AI that extracts, categorizes, and routes information without human intervention
  • Content generation tools that draft emails, social media posts, and basic reports
  • Data analysis automation that produces insights and visualizations from raw data

The technology is good enough now that companies are making the economic calculation: Is it cheaper to hire a $45K entry-level employee or pay $15K annually for AI tools that do the same work?

For many functions, the AI option is winning.

The College Graduate Crisis

This creates a massive problem for new graduates entering the workforce.

Entry-level job seekers are facing a market where traditional entry points are disappearing. The classic career progression—graduate, get an entry-level job, work your way up—is becoming less viable.

What we're seeing instead:

Degree Inflation: Jobs that used to require a bachelor's degree now want a master's. Jobs that were entry-level now require 2-3 years of experience. Companies are raising requirements because they can't afford to hire true beginners anymore.

Internship Arms Race: Internships are becoming the new entry point, with students doing multiple internships during college to build experience before graduating. Companies that used to hire graduates into full-time roles are now only hiring former interns.

Skills-Based Hiring Pressure: The shift to skills-based hiring is accelerating, with 81% of hiring now emphasizing demonstrable skills over credentials. But that creates a chicken-and-egg problem: how do you develop skills if you can't get an entry-level job?

The Equity Problem

Here's the uncomfortable truth: AI displacement of entry-level jobs disproportionately affects people who are already disadvantaged in the labor market.

Entry-level jobs have historically been a pathway for:

  • First-generation college students without professional networks
  • Career changers without industry experience
  • People re-entering the workforce after gaps
  • Immigrants building U.S. work history
  • Workers without college degrees looking to build skills

When you eliminate those entry points, you're making it harder for people without existing privilege to break into professional careers.

Companies will say they're committed to diversity and inclusion, but if your entry-level pipeline disappears, your diversity numbers will suffer. It's math.

The Roles That Are Safe (For Now)

Not every entry-level job is at risk. Roles that require complex human interaction, emotional intelligence, creativity, or physical presence are much harder to automate.

Entry-level roles with staying power:

  • Sales development reps (relationship-building is still human work)
  • Nurses and healthcare support staff (physical care can't be automated)
  • Skilled trades apprentices (plumbing, electrical, HVAC)
  • Creative roles (junior designers, content creators)
  • Roles requiring complex problem-solving in unpredictable environments

The pattern: Jobs that require adaptability, creativity, empathy, or physical dexterity are harder to automate than jobs that follow predictable processes.

What Companies Are Doing Wrong

The problem isn't that companies are using AI to improve efficiency. The problem is that many are cutting entry-level positions without thinking through the long-term consequences.

Short-Term Savings, Long-Term Problems:

Eliminating entry-level roles saves money immediately. But five years from now, where will your mid-level talent come from? If you're always hiring externally instead of developing talent internally, you lose institutional knowledge, culture cohesion, and the ability to develop leaders who understand your business deeply.

The AI Over-Reliance Risk:

What happens when the AI fails, gets regulated, or becomes too expensive? If you've completely eliminated the human roles that AI replaced, you don't have a backup plan.

Ignoring the Human Development Need:

People don't enter the workforce as fully-formed mid-level professionals. They need time to learn, make mistakes, develop skills, and build confidence. Entry-level jobs serve that function. If you eliminate those jobs, you're expecting people to arrive fully trained—which isn't realistic.

What Smart Companies Are Doing Instead

The best companies aren't just replacing entry-level jobs with AI—they're reimagining how those roles work.

AI-Augmented Entry-Level Roles:

Instead of "junior analyst," it's "analyst working with AI tools." The human focuses on interpreting AI outputs, making judgment calls, and handling exceptions. The AI handles data processing and pattern recognition.

This approach keeps the entry-level pipeline intact while dramatically increasing productivity.

Rotational Development Programs:

Some companies are creating structured development programs where early-career employees rotate through different functions, learning the business while working alongside AI tools. It's a deliberate investment in building future leaders.

Apprenticeship Models:

Borrowing from skilled trades, some tech and finance companies are creating formal apprenticeship programs where junior employees learn from experienced workers while contributing productively. It's a structured way to develop talent in an AI-augmented environment.

What Recruiters Need to Do

If you're in talent acquisition, this shift requires strategic adjustments:

1. Reframe Entry-Level Recruiting:

Stop recruiting for "entry-level" and start recruiting for "AI-augmented roles." The job descriptions, skills requirements, and interview questions need to change to reflect that candidates will be working alongside AI tools, not doing manual grunt work.

2. Emphasize Transferable Skills:

Since traditional entry-level pipelines are shrinking, you'll need to get better at identifying transferable skills in candidates from non-traditional backgrounds. Critical thinking, adaptability, and communication matter more than specific technical skills that AI can handle.

3. Build Talent Development Partnerships:

Partner with universities, bootcamps, and training programs to create pathways for candidates to develop skills that complement AI. Internships, co-ops, and apprenticeships become even more critical.

4. Advocate for Strategic Workforce Planning:

Push back against short-sighted "replace all entry-level with AI" mandates. Help leadership understand the long-term talent pipeline implications of eliminating entry-level roles entirely.

The Bottom Line

AI displacement of entry-level jobs is real, accelerating, and going to fundamentally change how recruiting works.

This isn't a "jobs will be fine" take or a "robots are taking over" panic. It's a pragmatic recognition that a significant percentage of entry-level roles will be automated in the next 2-3 years, and we need to adapt.

The companies that figure out how to use AI to augment entry-level workers instead of replacing them entirely will have a massive advantage in developing future talent. The ones that cut too deep will find themselves stuck in a few years, unable to hire mid-level talent because they destroyed their own pipeline.

For recruiters, this is both a challenge and an opportunity. The challenge is navigating a labor market where traditional entry points are disappearing. The opportunity is helping companies build smarter, more sustainable talent strategies that leverage AI without abandoning talent development.

The future of entry-level hiring is here. Let's hope we're ready for it.

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