- Recent survey by Intelligent.com reveals 8 in 10 companies anticipate laying off college graduates due to AI.
- Entry-level roles susceptible to replacement by AI include research, data entry, customer service, and office assistance.
- Since ChatGPT’s launch in 2022, 84% of companies report an increase in internship opportunities.
- 70% of respondents note a rise in job openings post-November 2022.
- Hiring managers believe AI can effectively perform intern and recent graduate tasks, with higher trust in AI’s capabilities.
Main AI News:
In a recent report by Intelligent.com, a platform dedicated to steering young professionals through the complexities of the evolving job market, findings suggest a looming challenge for recent graduates. The report, based on a comprehensive survey involving 804 hiring managers across the United States, delves into the repercussions of AI integration on the prospects of young professionals.
According to the survey, a staggering 78 percent of hiring managers foresee the integration of AI resulting in layoffs among recent college graduates within the coming year. Among this cohort, 23 percent project a minimal impact, with less than 3 percent facing termination. However, a significant portion, 27 percent, anticipate layoffs ranging from 5 to 10 percent, while 11 percent envisage more substantial cuts, between 15 and 30 percent. Shockingly, 11 percent foresee a drastic scenario where 30 to 60 percent of recent graduates could lose their jobs, with an additional 6 percent predicting an even more severe outcome, where 70 percent or more could face unemployment.
Huy Nguyen, Chief Education and Career Development Advisor, reflects on the findings, highlighting the vulnerable position of entry-level roles typically occupied by recent graduates. “Many recent graduates are hired to fill entry-level roles that involve information-related tasks such as research, data entry, customer service, and general office assistance,” Nguyen notes. “While these roles are invaluable for newcomers to gain essential experience, they are also the most susceptible to replacement by artificial intelligence.“
Furthermore, the survey reveals a shifting landscape in internship and job opportunities since the emergence of ChatGPT in November 2022. An overwhelming 84 percent of companies acknowledge an uptick in internship offerings, signaling a growing trend. However, 11 percent report no significant change, while 4 percent admit to a reduction in internships. Similarly, 70 percent of respondents cite an increase in job opportunities post-November 2022, albeit with 22 percent reporting stagnation and 7 percent indicating a decline in job openings for recent graduates.
Commenting on this trend, Nguyen emphasizes the transformative impact of technological advancements, particularly AI and automation, on the job market. “While the overall number of opportunities is on the rise, we’re witnessing a notable shift in the nature of entry-level roles,” Nguyen observes.
The survey findings also shed light on the perception of AI’s capabilities compared to those of interns and recent graduates. A significant 70 percent of hiring managers either “fully” or “somewhat agree” that AI can effectively perform an intern’s job. Tasks such as email correspondence, data entry, research, customer support, and task list generation are deemed within AI’s reach by hiring managers. Moreover, 57 percent express a higher level of trust in AI compared to interns. Similarly, 69 percent believe AI can handle recent graduates’ roles competently, with 56 percent expressing greater trust in AI’s capabilities over those of recent graduates.
Conclusion:
The findings suggest a significant paradigm shift in the entry-level job market driven by AI integration. Companies are increasingly turning to automation, leading to potential layoffs for recent college graduates. As the demand for AI-capable roles grows, job seekers must adapt to evolving job requirements, emphasizing the importance of acquiring skills that complement AI technologies. Additionally, businesses need to invest in upskilling their workforce to remain competitive in a rapidly changing landscape.
