Artificial intelligence (AI) has quickly moved from a futuristic concept to a transformative force in the workplace. Despite widespread corporate enthusiasm and growing fears about mass unemployment, AI has yet to result in the massive job losses that some experts predicted. However, as the workforce adapts, one thing is clear: AI is reshaping the job market, and entry-level workers are among those most vulnerable.
According to a recent report from Goldman Sachs, the use of AI among U.S. firms rose from 7.4% to 9.2% in just one quarter in 2025. However, despite the increase in AI adoption, there has been no significant impact on most labor market outcomes, including job growth, wage trends or layoff rates, particularly in industries exposed to AI. Job market data indicate that employment and unemployment rates in sectors embracing AI remain consistent with those in less-exposed sectors.
Brookings Institution’s July report concurs with this trend, noting that AI adoption is linked to firm growth and increased employment. Researchers found that a one-standard-deviation increase in AI investment resulted in a 2% annual increase in both sales and headcount after two to three years. However, the shift is already evident in certain sectors, where AI is starting to impact entry-level roles.
A changing landscape
One industry notably affected is the call center sector, where employment is slowing due to AI automation. Meanwhile, AI-related job postings now represent 24% of all IT job openings, although they still account for only 1.5% of total job ads.
“We’re looking at a complex reshaping, rather than a straightforward elimination,” said Gaurab Bansal, founder of Responsible Innovation Labs.
Goldman Sachs’ research has highlighted AI’s impact on productivity, with firms that fully integrate generative AI seeing labor productivity gains between 23% and 29%. In fact, tech giants like Amazon and Microsoft have already reaped significant savings. Amazon, for example, saved $250 million by deploying AI agents to upgrade 30,000 internal apps, while Microsoft uses AI for up to 30% of its code development.
While AI is clearly driving efficiency gains, concerns about its long-term impact on jobs persist, particularly for entry-level workers. A 2025 survey by Howdy.com revealed that 79% of U.S. tech workers are using AI more than they were six months ago, with AI assisting in tasks such as code generation, data analysis, cybersecurity and documentation. Yet, 38% of respondents believe their jobs could be replaced by AI within five years.
The threat to entry-level roles
The concern is particularly acute for entry-level workers, who are at risk as AI begins to automate tasks traditionally performed by humans. The World Economic Forum’s Future of Jobs Report 2025 warned that 40% of employers plan to reduce jobs where AI can automate tasks. Roles such as market research analysts and sales representatives could see up to 67% of their tasks replaced by AI.
Further findings from Brookings reveal that AI-adopting firms are increasingly favoring workers with higher educational credentials. The share of college-educated employees at these firms grew by 3.7%, with those holding STEM (science, technology, engineering and mathematics) degrees in particularly high demand. Conversely, the number of non-college-educated workers fell by 7.2%. The trend is also evident in how companies are restructuring their teams, reducing middle management roles in favor of independent, highly skilled workers.
“The most tasks for most jobs can’t be automated,” said Yann LeCun, Meta’s Chief AI Scientist. However, LeCun’s sentiment does not undermine the reality that AI is causing major shifts in workforce dynamics. The workforce of the future will likely be more reliant on highly-skilled workers, making it difficult for those in entry-level positions to keep pace.
Inequality and workforce restructuring
As AI continues to reshape the workforce, it could exacerbate existing inequalities. Larger firms with the resources to build and deploy custom AI tools will likely benefit the most, while smaller firms and lower-skilled workers may be left behind. This transition has led to growing skepticism, with some insiders questioning whether AI’s touted efficiency is merely a cover for cost-cutting measures aimed at reducing the human workforce.
For entry-level workers, mid-tier managers and policymakers, this is a wake-up call. AI may not be replacing jobs at the scale once predicted, but it is clear that its impact will be profound. While many tasks cannot yet be automated, the shift toward AI integration in the workforce will be significant and likely uneven.
“We’re entering a decade-ish, maybe more, period of uncertainty,” Bansal said. “The job market is in transition and entry-level workers need to prepare for the reshaping that AI will continue to drive.”
