Will AI Wipe Out Young Workers First?

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From Day One Editors
September 19, 2025 • Estimated Reading Time: 20 minutes

As AI expands across business operations, will the jobs of young workers be among the first to go? And if that happens, how will the future leaders of tomorrow enter the talent pipeline? 

HR leaders are already worried. Headlines warn that AI will damage, or already has damaged, the first rung on the corporate ladder, where young workers start their careers and occupy an important and useful position in corporate hierarchy. Though the full effects of AI on the labor market remain to be seen, some employers are already rethinking their workforce strategies.

With AI revolutionizing the most fundamental parts of work, employers must decide whether to regard AI as a substitute for early-career workers or as a tool to accelerate their growth. “If you are a head of HR and you are not jumping up and down and saying, ‘Hey, this is going to impact our culture and our business and our people, and me and my team need to be a part of it,’ then you’re not doing your job,” Dan Kaplan, managing director of the chief HR officer practice at executive search firm ZRG, told Emily McCrary-Ruiz-Esparza, a From Day One contributing editor.

Kaplan, who has more than a decade of experience advising CHROs, believes most HR leaders do understand the moment. But he says not enough attention is being paid to the early-career stage, since managerial succession is built on solid entry-level talent.

How Much Is AI to Blame?

The working world in 2025 is looking grim to many early-career workers, especially for those with college degrees. It’s been a year of layoffs, hiring freezes, and ominous predictions about the obsolescence of entry-level roles under the weight of AI. Salesforce eliminated 4,000 customer-support roles this year, and CEO Mark Benioff says that with AI, he simply doesn’t need as many people. Anthropic’s CEO Dario Amodei told Axios in May that AI could wipe out half of entry-level jobs. 

Yet so far, there’s little hard evidence that AI is displacing young workers en masse. “A lot of this is just related to the fact that the labor market has shifted back to a low-hiring, low-firing labor market,” said Joseph Briggs, senior economist at Goldman Sachs, on the firm’s Exchanges podcast. While it’s true that, across many sectors, college graduates are having trouble finding work, “the relationship that the anecdotes have to AI is often a little bit overstated,” he added.

Briggs did note some evidence of impact in tech industries, where unemployment among young workers is slightly higher than in other sectors. A working paper from researchers at Stanford University also suggests that widespread adoption of generative AI contributed to a 13% decline in the relative employment of early-career workers in sectors like tech and customer support.

Whether AI alone will trigger widespread unemployment among young people remains unclear. Still, companies in key industries are bringing in fewer entry-level hires in 2025. And with large-scale retirements looming, the question becomes: How are they filling the leadership pipeline?

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