AI may already be replacing some entry-level tech jobs, new research suggests. According to the study, while it’s difficult to say conclusively whether or not the technology is outright replacing job roles, tech firms recruited fewer college graduates in 2024 than they did in 2023, while the hiring of experienced professionals went up.
The researchers analyzed trends across 80 million companies and 600 million employees on LinkedIn. Their observations come off the back of similar World Economic Forum findings, in which 40% of employers intend to downsize to accommodate AI automation.
It’s unlikely that the study will come as much of a shock to figures in the tech space. With several leading companies replacing their staff with AI in recent months, it has long been felt that the writing is on the wall for those who work jobs that can be automated. Nonetheless, this growing body of evidence is unlikely to be met with enthusiasm in some quarters.
AI Already Replacing Job Roles, Study Finds
AI may already be taking over roles that were previously occupied by humans, according to new research from SignalFire. According to the State of Talent Report – 2025, big tech companies reduced the hiring of college graduates by a massive 25% compared with the previous year. Startups, meanwhile, decreased their graduate hiring by 11%.
At the same time, the hiring of seasoned professionals went up. Big tech companies increased hiring for employees with two to five years of experience by 27%, while startups increased it by 14%.
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SignalFire is a data-driven VC firm that tracks the job movements of more than 80 million companies and 600 million employees. The report is informed by some of those findings. Head of Research Asher Bantock argues that there’s “convincing evidence” that AI is a key driver for the changes.
Evidence Piling Up That AI Preferred to Unskilled Hires
The SignalFire report is part of a growing body of evidence that companies are looking to AI at the expense of making new hires. In April, World Economic Forum published a survey that found that 40% of employers intend to cut staff to make room for automation. At the same time, it was reported in the New York Times last year that executives at Goldman Sachs and Morgan Stanley were considering cutting junior hires in favor of AI.
Elsewhere, tech giant Microsoft announced that about 6,000 employees were let go in a huge round of layoffs in May, with programmers among the worst affected. While it did not explicitly state that AI was the reason, the layoffs followed comments by CEO Satya Nadella in which he confirmed that around 30% of the company’s code was now written by AI.
And not long before that, Duolingo confirmed that it would stop using contractors as part of a shift towards being an “AI-first” company.
Other Research Suggests AI Is Not Silver Bullet
While there’s no disputing that, increasingly, firms are looking to AI to solve their business headaches, don’t despair yet. Evidence is also stacking up that it is not yet the silver bullet solution that many had hoped. In April, researchers at Carnegie Mellon staffed a fake company entirely with AI agents – which were only able to accomplish 24% of the tasks they were assigned.
It’s notable that Duolingo – as well as a number of other companies – have walked back their aggressive pivots to AI in recent weeks, with the likes of Klarna and Starbucks both citing the “customer experience” as the reason for their respective backtracks.
Across the business sector, companies are itching to integrate AI into their everyday operations – sometimes at the expense of properly planning out their strategies. With 58% of businesses using AI motivated by “pressure from competitors,” it’s clear that we’re seeing a lot of knee-jerk decision-making.
Businesses and employees everywhere may benefit from taking a beat before taking the plunge.
