A new survey of corporate CEOs conducted by Oliver Wyman suggests artificial intelligence may be changing hiring plans in a way that could hit younger workers first. While public discussion around AI often focuses on mass automation or dramatic job losses, executives appear to be making more targeted decisions.

Many companies are reconsidering whether they need as many entry-level workers if AI systems can handle portions of beginner-level tasks.

The numbers changed sharply over the past year. Roughly 43% of CEOs said they expect to reduce hiring for junior positions, up from 17% previously, while only 17% of CEOs surveyed said they planned to increase focus on bringing in more entry-level staff.

Instead of focusing on entry-level hires, many companies are placing much greater emphasis on experienced workers, with 30% reporting they are increasing hiring at the mid-level, up from 10% last year.

The survey also found that more than 90% of CEOs say their companies are already using AI in some form. Despite that, many firms are still early in the process, as 67% said that AI projects are still in either planning stages or pilot programs rather than full implementation.

Entry-level jobs are how workers build experience, learn skills, and gradually move up over time. If companies start to reduce these positions while simultaneously increasing demand for experienced workers, younger workers will be facing the dilemma of companies wanting experience, but fewer actually creating paths to gain it.

Additionally, the entry-level positions still available will be fewer and farther between. This will make them far more competitive.

The numbers indicate that companies are moving cautiously while still changing hiring behavior. Only 27% of CEOs said AI investments met or exceeded expectations, down from 38% last year.

Nearly one-quarter reported no measurable impact on revenue from AI projects, while more than half said it is still too early to determine whether productivity gains are materializing.

That presents an interesting predicament, as many of these businesses are making consequential staffing changes before seeing any proven financial returns. Rather than basing their workforce plans on proven results, executives are adjusting them based on expectations of what AI could eventually do.

Entry-level jobs have always involved competition, but if companies further reduce these openings, newer graduates entering the workforce will spend more time searching, accept lower-paying work, and delay career and even life plans altogether.

The subsequent impacts are unlikely to stay confined to younger workers, as a whopping 74% of CEOs said they are freezing or reducing hiring overall, up from the already high 67% from the previous year.

The largest pullbacks are occurring in technology, media, and telecommunications. Recent data from the New York Federal Reserve also found labor conditions for workers ages 22 to 27 deteriorated sharply and reached levels not seen since the worst periods of the pandemic.

So many discussions about AI revolve around the idea that robots will replace workers overnight, but a far more likely, and deadly, scenario is a slower change in hiring patterns.

If the bottom rung of the career ladder begins to diminish, the consequences may not appear right away but will certainly manifest years later through weaker job markets and slower wage growth.

Furthermore, when people struggle to establish themselves early in their careers, it can delay major milestones such as moving out, buying a home, starting a family, and building financial stability.