A global shift towards artificial intelligence is putting fresh pressure on the jobs market, with entry-level positions facing the sharpest declines. As firms chase greater productivity and cost-efficiency, junior roles are being automated at pace—raising concerns about the long-term impact on workforce development.
The latest findings come from a report by the British Standards Institution (BSI), which surveyed over 850 business leaders across seven countries. It paints a stark picture of how the early-career labour market is evolving as employers increasingly view AI not just as a tool, but as a substitute for new hires.
Entry-Level Roles Shrinking Under Ai-Driven Business Models
According to the BSI survey, 41% of business leaders said AI was already enabling them to reduce headcount. A further 43% expect AI to cause additional reductions in entry-level roles over the next year. These positions often include tasks such as research, administration and briefing, and are typically among the first to be replaced as companies turn to automation to improve efficiency.
Worryingly, 25% of respondents stated that they believed most or all responsibilities of a typical entry-level worker could already be performed by AI systems. The implications are broad, with one in three business leaders suggesting their own first jobs would no longer exist today due to the rise of AI.
The survey spanned businesses in the UK, US, China, Japan, Australia, France, and Germany, capturing a broad cross-section of industrialised economies. Although the sectors were not specified, the shift appears widespread. In the UK, telecoms giant BT has already announced plans to replace up to 10,000 roles with AI as part of its ongoing workforce reduction strategy.
Firms Prioritise AI Over Upskilling, Raising Long-Term Concerns
Perhaps most tellingly, the BSI study found that nearly one-third of companies now explore AI tools before considering a human hire. This trend underscores a fundamental shift in how businesses are choosing to address their skills gaps—with automation taking precedence over training and workforce development.
Susan Taylor Martin, CEO of BSI, warned that this tension may define the next era of employment policy:
“AI represents an enormous opportunity for businesses globally, but as they chase greater productivity and efficiency, we must not lose sight of the fact that it is ultimately people who power progress”
The concern is that a generation of graduates and early-career workers could be locked out of the labour market, unable to gain footholds in careers that historically offered entry points. While 55% of executives believe the benefits of AI outweigh workforce disruptions, the report calls for “long-term thinking and workforce investment” to ensure sustainable employment.
