Is your job under threat from AI? Here’s what we know now
USA TODAY’s money reporter Rachel Barber looks at how AI is impacting the U.S. job market.
Just a few years ago, junior finance employees were expected to master Excel, learn about the company, and analyze data for specific requests.
Today, AI can handle much of that work, and new employees are increasingly asked to review AI-generated output, make decisions, and manage risk, responsibilities that traditionally required years of direct experience, said Peter Watkins, CFA Institute senior director of university programs.
“When you were an apprentice doing something 200 years ago, you had to work with other people for about two or three years,” Watkins said. “We seem to forget that it takes a period of time for people to really be effective at the next stage of their career.”
While some companies are just beginning to embrace AI, early adopters are more aggressive. According to NVDIA’s State of AI in Financial Services: 2026 Trends report, 73% of respondents in leadership roles say AI is important to their company’s future success, and 89% of those surveyed say the technology has increased revenue and reduced annual costs.
“There’s often a lot of pressure on CEOs to follow the crowd, for example when it comes to downsizing, but unfortunately the stock market tends to reward that on average because Wall Street interprets that, whether that’s true or not, as being able to do more with less,” said Eric Stettler, chief economist at talent market Toptal. “If your competitors are doing it, you need to show Wall Street and the board that yes, you’re doing it too.”
But Stettler, the management consultant, cautions these business leaders to remember to plan for the future and train the next generation of leaders.
“While cutting back on entry-level hiring and talent development during this transition period may look better on paper or in an Excel sheet, this is a transition period,” Stettler said. “You have a responsibility to develop your organization’s talent of tomorrow. AI is no excuse for putting it off. You need to play the long game.”
Will AI take away entry-level jobs?
Young job seekers are having a hard time getting their foot in the door. According to research from Cengage Group, 76% of employers report hiring fewer or the same number of entry-level positions in 2025, up from 69% in 2024. A study by the Federal Reserve Bank of New York found that 42% of recent college graduates are “underemployed,” the highest level since 2020. This means they usually have jobs that don’t require a college degree.
As companies grapple with economic uncertainty, AI is not the only factor contributing to the talent shortage environment. Among companies surveyed by Cengage Group, 46% said changes driven by AI and emerging technologies are contributing to a decline in entry-level hiring. About half said the current economic situation and tight labor market were to blame.
“Companies may not be hiring as much talent as they were a few years ago, but that’s as much a question of economics as it is AI,” Watkins said. “If companies are looking to reduce resources, AI starts to be a solution, but in a different economic climate, they will probably leverage AI more from an innovation and growth perspective.”
Still, a 2023 Goldman Sachs report estimates that approximately 300 million full-time jobs could be exposed to automation due to AI. A World Economic Forum report last year said AI was likely to disrupt as many roles as it created, leaving white-collar, entry-level jobs particularly vulnerable.
There is a potential “cost to pay” when companies fail to plan for the future.
Neil Costa, founder and CEO of recruitment and marketing agency HireClix, said that if companies are going to replace, rather than rebuild, entry-level jobs, they must remember that AI still lacks human experience, judgment, and diversity.
“There’s a big misconception among companies that think they can just throw it over a wall and into a machine,” Costa said. “While you may be benefiting now by saving money on the human element of running your business and your employees, I think you will pay a high price later.”
Mr Watkins said there was growing concern that some companies were moving towards a “diamond-shaped career structure”. In other words, there are few employees in the lower tiers, many employees in the middle tiers, and almost no employees in the upper tiers.
“Obviously, that’s not sustainable. We’re always going to need a pyramid,” he said, adding that research analysts will always be needed or else “no one else will be able to understand what the AI tools are doing.”
What companies miss when they don’t have entry-level talent
Stettler said companies should view today’s situation as an opportunity to develop a new generation that will bring creativity and innovation to the organization for decades to come, even if the junior employees end up in other jobs.
“They will remember what they learned here and become future customers, future partners and future investors,” Stettler said. “What I’m talking about is a serious, analytical, quantitative method. This isn’t about making you feel better.”
Costa added that companies should consider that young people tend to learn new technology faster than people who have been working for decades. He said that trait is likely to lead to increased productivity and increased profits over time.
“It would be almost remiss to abandon young talent who are finding ways to incorporate this amazing productivity tool into their daily lives,” Costa says. “Why transfer that talent away? Why avoid some of the labor costs now and just get a short-term benefit without thinking about the benefits it could generate in sales?”
What skills are companies looking for?
Watkins said new graduates used to join a company to learn the ropes, but now they are expected to innovate immediately after being hired.
He added that today’s strong candidates either have specific experience with new technologies to fill internal knowledge gaps, or are adaptable individuals with strong interpersonal skills, business acumen, and a broad background. Ideally both. Applicants no longer stand out just because they can code. They may have a deep understanding of AI.
“What we have to remember is that the generation coming into the workforce is digital natives, but they are not AI natives,” Watkins said. “They tend to say, ‘Yes, we can use AI.’ But they’re also looking for companies that offer training and on-the-job time to learn about AI.”
Costa said applicants should expect to have an answer ready when asked for examples of when a company has used AI constructively for young people who know little about the technology.
“Companies are looking for people who can bridge the gap between AI and other areas of the business,” Stetler said. “If you’re a designer or a financial professional, they want you to be professionally fluent enough in AI so they can then move in another direction.”
The evolving corporate ladder
There seem to be two paths for young workers.
First: Escaping automation and pursuing jobs that require people to come to the office and perform physical tasks cannot currently be replaced by AI. The most in-demand jobs in 2025 seem to fall into this category. Those positions included nurses, caregivers, social workers, warehouse workers and installation technicians, according to a report by Monster.com, an online job search platform.
Monster career expert Vicki Salemi said what all these careers have in common is that they require human judgment, trust and relationship building. It also cannot be fully automated or offshored.
“Perhaps these roles on the front lines don’t appeal to them, or maybe they don’t have the qualifications right now to pursue them at full throttle, but they can keep this list in mind for resiliency as they consider other jobs,” Salemi said.
Second: Secure an internship that leads to or apply for and network with the entry-level roles that AI is reshaping.
Stetler said those who follow the second path must remember that humans are still superior to AI in terms of creativity and judgment. Judgments are based on experience, so young job seekers need to focus on their creativity.
“The difference between today’s entry-level jobs and when I started is that now you’re thinking at a systems level from day one,” Stettler says.
Contact Rachel Barber at rbarber@usatoday.com and follow her at X @rachelbarber_
