1 in 3 employers admit they’re replacing entry-level roles with AI—and tech and manufacturing jobs are most at risk
The job market for Gen Z appeared to be more resilient than many feared. unemployment rate did not increaseand some of the bleakest predictions that AI will eliminate entry-level jobs, including warnings from Anthropic’s CEO Dario Amodei and CEO of OpenAI Sam Altman-dead tempered by a surviving labor market better than expected.
But a new report A proposal from the Graduate Management Admission Council throws a wrench into that optimism.
According to GMAC’s latest Corporate Recruiters survey of more than 600 recruiters worldwide, one-third of employers say they are replacing entry-level jobs with AI. More than half of survey respondents are Fortune 100 or luck 500 companies.
This is an indication that the fears of Generation Z are coming true: It is becoming really difficult to reach the first ring of the career ladder.
40 percent of employers in the sector say that artificial intelligence is replacing entry-level positions, followed by production.
But Sabrina White, GMAC’s senior vice president of school and industry engagement, said Gen Z shouldn’t interpret the findings as a fallacy. Reason to avoid AI. Instead, he argued that the report underscores the importance of learning to use technology to create business value.
“Employers are increasingly using AI to automate routine tasks in areas like coding, data processing and customer service, but they continue to invest in talent that can apply judgment, solve problems and help organizations drive change,” White said. Luck in an email.
“Historically, changes in technology have transformed jobs rather than eliminated them, and employers are signaling that this transition will be no different.”
MBA may still work, but it’s no longer a guaranteed shortcut for Gen Z
Historically, when the labor market deteriorates, workers often return to school to improve their skills, and this trend is reemerging. Applications Graduation rates from business programs increased by 13% in 2024 and 2% in 2025 as professionals seek to gain an advantage in an increasingly competitive recruitment market.
But an MBA is not the guaranteed career accelerator it once seemed; especially at a time when there are many senior executives. The cost of the programs can reach up to six figures.
Only 13% of employers surveyed said they are hiring more MBA graduates In 2025, it is higher than the previous year. Hiring also fell below employers’ own expectations across a range of business grades. For example, while 74% of employers expected to hire graduates with a master’s degree in finance, only 68% did so.
