AI's Silent Takeover: Entry-Level Jobs Threatened

Published Date : 09/06/2025 

Artificial intelligence is subtly transforming the workplace, but the impact on entry-level jobs could be profound. Here's what you need to know. 

After years of hype and hesitation, artificial intelligence (AI) is beginning to displace real jobs, writes Catherine McGregor in today’s extract from The Bulletin.

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The quiet start of a loud disruption

For many workers, the presence of artificial intelligence in the office has so far been subtle – a bit of text from ChatGPT here, an AI-generated image there. But a profound shift in the labour market is coming, many business and AI insiders say. Anthropic, the maker of the Claude AI models, has found that while AI is being used mainly for the augmentation of tasks, a transition toward automation – actually doing the job – is well underway. “Most [workers] are unaware that this is about to happen,” Anthropic CEO Dario Amodei told Axios. “It sounds crazy, and people just don’t believe it.”

His warning was echoed by Axios co-founders Jim VandeHei and Mike Allen, who said they had “talked to scores of CEOs” about how they’re thinking about AI. “Every single one of them is working furiously to figure out when and how agents or other AI technology can displace human workers at scale,” they wrote. “The second these technologies can operate at a human efficacy level, which could be six months to several years from now, companies will shift from humans to machines.”

Tech jobs may be the canary in the coal mine

If that sounds alarmist, the numbers suggest otherwise. A global survey of senior executives found that 10% of all job roles could be eliminated by AI within five years. That figure, described as “modest” by Dr Paul Henderson in his recent Maxim Institute report, Gone for Good: AI and the Future of Work, would still cause “a marked disruption in New Zealanders’ lives”.

Some sectors are already showing signs of strain. Software development, in particular, has seen entry-level jobs disappear with the rise of coding assistants and no-code platforms. The IT news site CIO reports that teams are being restructured around AI tools, favouring experienced developers who can supervise machine-generated code over junior staff who once cut their teeth writing it. As Meta’s Mark Zuckerberg put it earlier this year, mid-level engineers – and presumably the junior coders aspiring to join them – may become unnecessary “in 2025”.

A grim forecast for new graduates

It seems that those searching for their first office jobs are most at risk. Amodei has predicted AI could wipe out half of all entry-level white collar jobs in the next five years. In the New York Times, Kevin Roose reports that numerous firms are “making rapid progress toward automating entry-level work”, while others are becoming “AI-first”, evaluating whether a job even needs a human before posting the vacancy.

While this trend is most visible in the US, its implications are global – including for New Zealand, where many graduate roles mirror their overseas counterparts. The IMF has warned that up to 60% of jobs in advanced economies may be affected by AI. If so, the dream of a secure professional career may become a luxury afforded only to those already through the door.

Education in the age of artificial answers

For those still in education, the concern is not just if there’ll be a job waiting – but whether they’re truly learning anything at all. In The Spinoff this morning, Hera Lindsay Bird documents the creeping use of generative AI in New Zealand schools and universities. Some of the quotes from teachers and lecturers are eye-popping. “My main beef with AI is that it made me into a grown adult asshole who had 18-year-old enemies,” one says. “I wanted to be a teacher not a cop.”

Lindsay Bird writes: “Almost every educator I spoke with, from primary school teachers to those supervising postgraduate dissertations, raised serious concerns,” she writes, “with some teachers estimating that up to 80% of their students relied on ChatGPT to complete assignments.

“I spoke to MA supervisors whose history students theses were riddled with fictitious sources and ‘archival’ Midjourney photographs, and primary and intermediate school teachers, who said students as young as 11 were using it to answer simple personal prompts, such as ‘what did you do in the summer holidays?’ and ‘what was your favourite penguin in the text?’”

Read: Hera Lindsay Bird on the reality of teaching in the world of AI 

Frequently Asked Questions (FAQS): 

Q: What is the current impact of AI on the job market?

A: AI is currently being used to augment tasks, but there is a growing trend toward automation, with some experts predicting significant job displacement in the next few years.

Q: Which sectors are most affected by AI job displacement?

A: Software development, especially entry-level roles, is heavily affected by AI. Other sectors like finance, customer service, and data analysis are also seeing changes.

Q: How are companies preparing for AI in the workplace?

A: Many companies are actively exploring how AI can replace human workers at scale, with a focus on when and how to implement these technologies.

Q: What does the future hold for new graduates in the job market?

A: New graduates may face significant challenges as AI could eliminate a large number of entry-level white-collar jobs in the next five years.

Q: How is AI affecting education?

A: AI tools like ChatGPT are being used by students to complete assignments, raising concerns about the authenticity of learning and the role of educators. 

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