May 28, 2011 - Although it's difficult to pinpoint AI Has it begun to replace the humanJob Positions, but a new survey by the World Economic Forum shows that the40% employers plan to lay off workers in areas where AI can automate tasks.
SignalFire, a data-driven venture capital firm that specializes in tracking the career dynamics of more than 600 million employees and 80 million companies around the world, believes they may have observed the initial impact AI is having on the hiring market. By analyzing hiring trends, SignalFire found thatIn 2024, tech companies are hiring fewer recent college graduates than in 2023At the same time, large tech firms, especially those in the top 15, have stepped up their hiring of seasoned professionals.
Specifically, SignalFire's data shows that large tech companies are hiring 251 TP3T fewer new graduates in 2024 than they did in 2023.Meanwhile, graduate hiring by startups is down 111 TP3T from the previous year.While SignalFire didn't disclose the exact number of graduates it's hiring fewer of, a spokesperson for the company said the number amounted to thousands.
While the adoption of new AI tools may not be the only reason for the decline in freshman hiring, Asher Bantock, research director at SignalFire, says there's "compelling evidence" that AI is a major influence on this trend. Entry-level positions are more vulnerable to automation because they typically involve routine, low-risk tasks that generative AI excels at, and AI's emerging capabilities in areas such as programming, debugging, financial research, and software installation mean that companies may no longer need as many people to do these tasks. positions to be phased out in the future.
While most large investment banks have yet to explicitly cut back on analyst hiring due to AI, the New York Times reported last year that executives at firms such as Goldman Sachs and Morgan Stanley had considered slashing entry-level hiring by as much as two-thirds and lowering the pay of new hires because, with AI, the need for manpower isn't as great as it once was.
1AI notes that while the threat of AI to low-skilled jobs is real.But the demand for experienced professionals at tech companies is still on the rise. According to SignalFire's report, large tech companies saw a 271 TP3T increase in hiring for professionals with two to five years of experience, while startups saw a 141 TP3T increase in hiring in the same experience level range.
A frustrating paradox has emerged for recent graduates: they can't get a job without experience, but they can't gain experience without a job. While this dilemma is not new, Heather Doshay, Talent & People Partner at SignalFire, says the advent of AI has dramatically exacerbated the dilemma.
Doshay's advice to new grads: become proficient with AI tools. "If you're a master at using AI tools, AI won't replace your job." She said.