Generative AI and the Future of Entry-Level Jobs

Generative AI is rapidly reshaping the workforce. According to a recent survey, 86% of executives plan to replace entry-level roles with AI, and nearly one in six have already done so. Another study revealed that AI could eliminate 56% of entry-level jobs within five years. 

Law firms using AI for contract review already report 40% fewer document analysis opportunities for first-year associates. Top executives at Goldman Sachs, Morgan Stanley and other banks are debating how deeply they can cut their incoming analyst classes. So, what does this mean for the future of entry-level jobs, and how can new graduates adapt?

The traditional career ladder, where new hires start with routine tasks and gradually build expertise, will be redefined. While AI adoption promises operational efficiency and reduced human error, it also disrupts traditional career pathways that rely on entry-level roles as foundational training grounds. However, this disruption doesn’t necessarily equate to fewer opportunities — rather, it signals a transformation in how careers begin and develop. AI-powered tools are automating many of these foundational tasks, raising the bar for what is expected of new employees.

The New Baseline: AI Literacy as a Core Competency

For decades, entry-level positions have focused on learning through repetition. Junior software engineers wrote simple code, paralegals reviewed documents, and financial analysts compiled reports. 

Now, understanding how to leverage AI tools effectively will become a core requirement. New professionals must know how to interact with AI-generated outputs, verify their accuracy, and integrate them into their workflow to enhance productivity. To prepare students for the AI-driven job market, educational institutions are partnering with industry leaders to provide students with access to the latest AI tools and platforms, ensuring their skills are relevant to the demands of the workplace. For example, in February, OpenAI partnered with the California State University system to bring ChatGPT Edu to their 23-campus community, and JP Morgan recently added prompt engineering training to its asset and wealth management department’s new hire training program.  

Accelerated Career Progression

According to a recent Capgemini report on genAI in management, 51% of leaders and managers believe genAI will accelerate the career progress of entry-level workers. 64% of leaders expect entry-level positions to evolve from creation to review and refinement of outputs within the next three years. Employees in these positions will focus more on quality control, critical analysis, and ensuring AI outputs meet business standards. 

A LinkedIn survey revealed 52% of millennials and 48% of Gen Z globally believe AI will help advance their careers by providing faster access to work-related knowledge and insights. A Managing Director at Accenture noted in an AlphaSense transcript that Accenture’s genAI copilot tool assists junior staff with tasks and provides subject matter expertise — i.e., “the copilot itself becomes your subject matter advisor.” By filling knowledge gaps that typically required senior oversight, this AI tool allows Accenture to rely more on junior staff for more complex work, reducing the need for as many senior employees on a deal.

Take software engineering as an example: Traditionally, a Software Engineer 1 is focused on writing and debugging small sections of code under supervision. With AI handling much of the routine coding and bug fixing, junior engineers will be expected to engage with higher-level problem-solving and even architectural decisions. It will be essential for new hires to have familiarity with AI-powered development environments and have the ability to guide AI-generated code effectively.

Similarly, a financial analyst’s early responsibilities often include data gathering, trend analysis, and report generation. AI-powered analytics platforms will perform many of these tasks. The role of the entry-level analyst will evolve into one that focuses on interpreting AI-driven insights, identifying strategic risks, and collaborating with senior decision-makers to apply these insights effectively. 

New Entry-Level Roles

At the same time, genAI is creating new entry-level jobs. According to the Capgemini report, 81% of leaders and managers expect new entry-level roles, such as data curators, AI ethics specialists and algorithm trainers, to become more wide-spread. 

Searching LinkedIn U.S. jobs in early March returned 295 jobs for “AI trainer” and 68 for “AI content writer.” And while AI ethics and compliance roles often require some experience, the surge in demand means new graduates with training in AI ethics or law could step into junior positions.

Beyond AI Literacy

Mastering AI tools alone won’t be enough. According to a KPMG survey, 79% of New York business leaders and 70% in Chicago say the integration of genAI has made them rethink the skills required for entry-level roles. 

Beyond AI literacy skills, professionals will need to cultivate a broad set of cognitive and interpersonal skills to thrive in an AI-enhanced workplace. According to a LinkedIn report, 69% of U.S. executives say they plan to prioritize hiring candidates with soft skills. Employers are increasingly valuing individuals who can complement AI’s computational power with human creativity, strategic thinking, and adaptability. 

Critical Thinking and Problem-Solving

With AI handling routine tasks, the ability to evaluate AI outputs and make higher-order decisions is crucial. Entry-level employees will need to develop strong analytical skills to assess the relevance and reliability of AI-generated information. 

This is especially important given new research from Microsoft and Carnegie Mellon University that found that “higher confidence in genAI is associated with less critical thinking, while higher self-confidence is associated with more critical thinking.” 

The study also highlighted key barriers to critical thinking in AI-assisted work. Lack of time for critical thinking emerged as a significant barrier. For example, a sales development representative noted that meeting quotas often forced them to prioritize speed over verification. The researchers recommend designing AI tools that actively encourage critical engagement rather than passive acceptance of AI outputs. 

Another barrier noted in the study: not possessing enough domain knowledge. 

Domain-Specific Expertise

While AI can generate content, professionals will need to verify, refine, and apply it correctly within their specific industries. A deep understanding of industry-specific knowledge will ensure AI outputs are accurate and actionable. 

In addition, someone coming in with strong domain knowledge could identify new opportunities for genAI to effectively solve real-world problems within the industry.

Communication and Collaboration

As AI generates insights and automates reports, professionals must present and interpret this information effectively. Strong interpersonal skills will be essential to bridge the gap between AI outputs and strategic decision-making within teams. 

In addition, some entry-level roles may include earlier exposure to clients. As AI takes over routine tasks, early-career professionals — such as those in financial analysis, consulting, or marketing roles — may shift from back-end work to more client-facing responsibilities.

The Future of Entry-Level Careers

With AI reshaping the professional landscape, entry-level workers will need to adapt by acquiring advanced skills earlier. Education and training programs must evolve to prepare students for these heightened expectations. 

Interestingly, there is also a resurgence in hands-on, vocational education as a response to the changing workforce demands. High schools are reviving shop classes and trade-focused education to equip students with practical, career-ready skills that AI cannot easily replicate. As AI automates knowledge-based work, skilled trades — such as welding, electrical work, and carpentry — are becoming more attractive career paths, offering stability and predictable advancement. In addition, some parents in the tech industry are encouraging their children to pursue careers in the arts rather than in STEM fields, as those jobs appear to be less vulnerable to AI.

AI is redefining early-career roles, shifting expectations toward higher-value tasks that require a blend of AI fluency, human oversight, and strategic decision-making. Instead of spending years on routine tasks, new hires will engage in strategic thinking and AI-powered decision-making from day one. While this raises the stakes for entry-level jobs, it also accelerates career growth, allowing employees to develop expertise and advance faster than ever before. 

Regardless of the industry, adaptability and the ability to work alongside AI will be key to long-term career success.

ABOUT THE AUTHOR
Sarah Hoffman
Sarah Hoffman
Director of Research, AI

Sarah Hoffman is Director of Research, AI at AlphaSense, where she explores artificial intelligence trends that will matter most to AlphaSense’s customers. Previously, Sarah was Vice President of AI and ML Research for Fidelity Investments, led FactSet’s ML and Language Technology team and worked as an Information Technology Analyst at Lehman Brothers. With a career spanning two decades in AI, ML, natural language processing, and other technologies, Sarah’s expertise has been featured in The Wall Street Journal, CNBC, VentureBeat, and on Bloomberg TV. Sarah holds a master’s degree from Columbia University in computer science with a focus on natural language processing, and a B.B.A. from Baruch College in computer information systems. Sarah is based in New York.

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