Gen Z's Worst Nightmare: 1 in 3 Employers Replace Entry-Level Jobs with AI

A new report from the Graduate Management Admission Council (GMAC) reveals that one-third of employers are replacing entry-level jobs with AI, according to a survey of over 600 recruiters worldwide. More than half of the respondents recruit for Fortune 100 or Fortune 500 companies. This confirms Gen Z's fears: the first rung of the career ladder is becoming increasingly difficult to reach.

Tech roles are hit hardest, with 40% of employers in the industry saying AI is replacing entry-level positions, followed closely by manufacturing. However, Sabrina White, senior vice president at GMAC, advises Gen Z not to avoid AI but to learn how to use it to create business value. She notes that historically, technology shifts change jobs more than eliminate them.

MBA: No Longer a Guaranteed Shortcut

Applications to graduate business programs jumped 13% in 2024 and 2% in 2025 as professionals seek an edge. But an MBA isn't the guaranteed career accelerator it once was. Only 13% of employers hired more MBA graduates in 2025 than the previous year. The median starting salary for MBA graduates is estimated to slip to $120,000 from $125,000 in 2025. However, top programs still pay off: graduates from Harvard, MIT, and Wharton earn over $245,000 three years after graduation.

Employers are raising the bar for what they expect from graduates, emphasizing the ability to navigate complexity, make decisions in uncertain environments, and translate emerging technology into business impact.

CEOs Still Bet on Young Talent

CEOs from IBM, AWS, and Waabi remain bullish on hiring young talent, arguing that early-career workers are more comfortable with AI tools and eager to learn. While employers still rank human skills like communication and problem-solving as top priorities, they expect AI proficiency and technology skills to climb sharply in importance over the next five years.

"The future of work belongs to people who can not only command technological capability but also communicate ideas, align teams, and make decisions," says White.