The impact of artificial intelligence on white-collar jobs is no longer theoretical—it's happening now, with entry-level positions in technology and finance sectors feeling the first effects.
SignalFire's State of Talent Report 2025 provides compelling evidence of this shift, showing that major tech companies have slashed new graduate hiring by 25% compared to 2023, while startups reduced entry-level recruitment by 11%. Simultaneously, hiring of professionals with 2-5 years of experience increased by 27% at Big Tech firms and 14% at startups, suggesting a fundamental restructuring of the talent pipeline.
The financial sector is experiencing similar disruption. Gabe Stengel, who founded AI financial analyst startup Rogo after working at Lazard investment bank, notes that his company's AI tools "can do almost all the work" he performed as a junior banker—including analyzing companies, preparing materials, conducting due diligence, and reviewing financials. Since its founding in 2022, Rogo has secured significant funding, including a recent $50 million Series B round, and is being used by at least fifteen banks.
While most large investment banks haven't explicitly reduced analyst hiring due to AI yet, executives at firms like Goldman Sachs and Morgan Stanley have previously considered cutting junior staff hires by up to two-thirds. The World Economic Forum's Future of Jobs Report 2025 reinforces this trend, revealing that 40% of employers expect to reduce their workforce where AI can automate tasks.
This creates a challenging paradox for recent graduates: they can't get hired without experience but can't gain experience without being hired. Heather Doshay, SignalFire's people and talent partner, advises new graduates to master AI tools, stating, "AI won't take your job if you're the one who's best at using it."
Despite these challenges, the demand for experienced professionals continues to rise, particularly in AI-intensive fields. This suggests we're witnessing not an overall reduction in jobs, but rather a significant shift in which skills and experience levels are valued in the evolving AI-driven economy.