Entry-level roles decline as employers face AI pressure

Entry-level job vacancies have faced a steep decline since the launch of ChatGPT, but replacing human talent could hinder long-term growth and innovation.

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You might have seen those “stop hiring humans” ads on the London underground that look like something out of the new Black Mirror series. No, it’s not a sign for businesses to fully replace their staff with robots. But it does seem like we’re at the start of an AI “jobpocalypse”.

Research from Adzuna has revealed a significant drop in graduate roles, internships and apprenticeships since the launch of the generative AI chatbot, ChatGPT, in November 2022. The research suggests that businesses are using AI tech to replace junior workers.

But while firms continue to face pressure to adopt new technologies and try to cut back on costs, swapping out people entirely could backfire for businesses trying to scale.

The rise of ChatGPT, and the fall of entry-level jobs

Even before ChatGPT was born in 2022, the job market for graduates hadn’t been a friendly place. But with the rise of generative AI in the last three years, gaining employment as a newcomer almost feels like an impossible task.

According to research by Adzuna, the number of job vacancies has declined by 32% since 2022. It was also reported that entry-level jobs now only account for 25% of the market in the UK — down from 28.9% three years ago.

And it’s only predicted to get worse. Dario Amodei, CEO of AI company Anthropic, warns that the technology could wipe out half of entry-level jobs in the next five years.

“We, as the producers of this technology, have a duty and an obligation to be honest about what’s coming,” Amodei said. “I don’t think this is on people’s radar.”

Businesses are relying on AI too quickly

There are obvious benefits to adopting AI tech in business, particularly around improving efficiency and reducing costs. Even workers have admitted that AI is now outperforming them in certain areas, such as routine tasks (48%) and attention to detail (45%).

However, the pressure to adopt new technology can lead to businesses being pushed into implementing something they’re not ready for. 

Our 2025 Workforce Report found that 82% of companies are experiencing pressure to adopt emerging technologies, such as AI. But it hasn’t always gone to plan. Data shows that  36% of AI projects have failed in the last year.

For sole traders and solopreneurs, who may not be ready to hire staff just yet, tools like ChatGPT can be useful to plug gaps in the workforce or act as a virtual assistant. They are now commonly used for tasks like content creation, customer service and strategic planning. But as your business grows, over-relying on AI without hiring human employees isn’t viable.

Using AI to make complex decisions brings ethical dilemmas. In HR, for instance, using a robot to select candidates for a promotion could lead to accusations of discrimination. System outages, such as ChatGPT’s crash last month, can also delay business operations.

AI can also get it wrong. For example, research by LiveChatAI found that ChatGPT only scored between 47%-62% for accuracy on real-world, factual questions. 

AI lacks emotional intelligence, says expert

Despite its rapid evolution, the idea of AI replacing the workforce is ludicrous to many. Wouter Durville, CEO and co-founder of TestGorilla argues that AI “can’t replicate the emotional intelligence, critical thinking, and human judgement that real people bring to entry-level roles”.

There’s also a need for AI-skilled individuals. After all, 52% of tech leaders say they’re facing an AI skills gap in the past year, compared to 20% the year before. 

Ironically, entry-level workers could be the perfect people to train on implementing and managing crucial AI systems. Their relatively lower experience levels can be an advantage, allowing them to approach AI systems with a fresh perspective and a willingness to learn.

“Investing in early-career talent is key to long-term innovation, fresh thinking, and sustainable growth,” Durville adds. “Rather than replace them, businesses should focus on developing their potential with the right tools and support.”

Written by:
Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.

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