If and when will the replacement of labor begin, this is the subject of many debates.

While it is still difficult to determine if AI begins to take over the role humans have played before, a recent World Economic Forum survey found that 40% of employers intend to lay off workers whose AI can automate tasks.

Researchers at data-driven venture capital firm SignalFire tracked job transfers from more than 600 million employees and 80 million companies on LinkedIn, and they think they might see first signs of AI’s impact on recruitment.

While analyzing the recruitment trends, SignalFire noted that technology companies recruited fewer college graduates in 2024 than in 2023. However, technology companies, especially the top 15 large tech businesses, have increased recruitment of experienced professionals.

Specifically, SignalFire found that large tech companies cut new graduate hiring by 25% in 2024 compared to 2023. Meanwhile, hiring for start-ups has decreased 11% compared to the previous year. While SignalFire won't reveal exactly how many graduates they've hired based on their data, a spokesperson told us that it's thousands.

Indeed, adopting new AI tools may not fully explain the decline in recent graduate recruitment, but SignalFire's research lead Asher Bantock said there is "convincing evidence" that AI is an important factor.

Entry-level jobs are easy to automate because they often involve regular low-risk tasks, and the generation of AI can handle it well.

New coding, debugging, financial research and software installation capabilities for AI may mean that companies need fewer people to do such work. The ability of AI to handle certain entry-level tasks means that some jobs for new graduates will soon be outdated.

Gabe Stengel, founder of AI finance analyst Rogo, started his career at Lazard Investment Bank, helping big pharmaceutical companies buy biotech startups. Rogo's Tools “"We can put materials, diligent companies carefully study their financial aggregation," Stangel said on the stage last week at the Newcomer's Financial Technology Summit.

While most large investment banks have not explicitly reduced their recruitment due to AI analysts, executives at companies such as Goldman Sachs and Morgan Stanley have previously considered hiring junior employees as much as two-thirds and lowered the salaries of the people they hire because jobs with AI are not required as they used to be, and the New York Times are not required as they did the previous year.

While AI’s threat to low-skilled jobs is real, the demand for experienced professionals in tech companies is still rising. According to a report by SignalFire, recruitment for large tech companies increased by 27% to professionals with two to five years of experience, while startups hired 14% of individuals within the same qualifications.

Recent graduates have had a frustrating paradox: they cannot be hired without experience, but they cannot be hired without it. While this dilemma is nothing new, Signafire's talent and talent partner Heather Doshay said AI has greatly exacerbated it.

Dashay's advice for new graduates: Master AI tools. “If you are the best person to use it, AI won’t take your job,” she said.