The rise of artificial intelligence (AI) is rapidly transforming the tech industry, and one of the most significant impacts is on tech hiring, particularly for entry-level positions. A growing body of evidence suggests that AI is not just changing workflows but actively replacing roles traditionally held by junior staff, leading to a potential reduction and displacement of entry-level tech jobs.

Several recent studies and reports highlight this trend. A report from SignalFire, a venture capital firm, found that big tech companies have reduced their hiring of recent graduates by a staggering 25% from 2023 to 2024. Startups have also decreased their graduate hiring by 11%. This decline coincides with an increase in the hiring of experienced professionals, with big tech companies increasing hiring for those with two to five years of experience by 27%, and startups by 14%. This data indicates a shift in hiring strategies, with companies prioritizing experienced talent over entry-level candidates.

The World Economic Forum's Future of Jobs Report 2025 reveals that 40% of employers expect to reduce their workforce where AI can automate tasks. This sentiment is echoed by executives across various industries, with 86% planning to replace entry-level roles with AI. Some experts predict that AI could eliminate over half of all entry-level, white-collar jobs within the next five years.

AI's ability to automate routine tasks is a primary driver of this shift. Entry-level positions often involve repetitive tasks such as basic coding, data entry, market research, and customer service. AI-powered tools can now perform these tasks more efficiently and cost-effectively, reducing the need for human employees. For example, AI can code, conduct financial research, and review legal documents, tasks previously assigned to junior employees.

The impact is already being felt across the tech industry. Duolingo, an "AI-first" company, plans to phase out contract workers whose jobs can now be done by AI. Shopify requires managers to prove that AI cannot perform a job before new hires are approved. Salesforce has acknowledged that its use of AI has contributed to a slowdown in hiring. One tech executive revealed that their company has stopped hiring programmers with 3–7 years of experience, as AI coding tools can now handle that work.

This trend has significant implications for recent graduates and those seeking to enter the tech industry. The traditional career ladder, where new hires start with routine tasks and gradually build expertise, is being redefined. As entry-level opportunities decline, new graduates may find it more challenging to gain the necessary experience to advance their careers. Some fear a rise in graduate unemployment as entry-level jobs are replaced by AI.

However, the rise of AI does not necessarily equate to fewer opportunities overall. Instead, it signals a transformation in how careers begin and develop. AI is also creating new jobs, such as AI trainers, AI content writers, data curators, and AI ethics specialists. These roles require a different skill set, with a focus on AI literacy, critical thinking, and strategic decision-making. The ability to work alongside AI, verify its outputs, and integrate it into workflows will become a core requirement for new professionals.

To adapt to this changing landscape, educational institutions and training programs must equip students with the skills needed to succeed in an AI-driven job market. This includes providing access to the latest AI tools and platforms, embedding AI literacy into curricula, and fostering partnerships with industry leaders. Individuals should focus on developing skills that AI cannot easily replicate, such as creativity, problem-solving, communication, and emotional intelligence.

While AI poses a significant challenge to entry-level tech positions, it also presents opportunities for those who are willing to adapt and acquire new skills. By embracing AI as a tool for growth and focusing on uniquely human skills, new professionals can navigate the changing job market and build successful careers in the age of AI.