AI is shrinking entry-level jobs, raising fears of a future leadership shortage

The use of artificial intelligence (AI) may lead companies to hire fewer entry-level workers. That could create a shortage of skilled managers and leaders in the future. The reason is that if newcomers get fewer chances to do real work, learn from mistakes, and receive guidance from experienced colleagues at the start of their careers, there could be a shortage of experienced workers later.

Stanford University's Digital Economy Lab in the United States published an analysis in August 2026. It showed that in professions most exposed to AI, employment of workers aged 22 to 25 had comparatively declined through June 2026.

A study published in September 2026 by the US Census Bureau also brought up similar findings. The study showed that after the launch of ChatGPT, graduates in computer science and software-related subjects became less likely to find jobs quickly after finishing their studies.

In entry-level jobs, workers do more than just handle an organisation's daily work — they also build professional judgement. For example, when a junior analyst prepares a business forecast, an experienced manager can point out the errors in the data and assumptions they used.

If the same work can be done quickly with AI, a company can save time and money immediately. But if a junior employee never gets the chance to do the work, their learning process is also disrupted. In this way, the path to building skilled workers over the long term could narrow.

Nickle LaMoreaux, chief human resources officer at technology company IBM, has also warned about this. In her view, cutting entry-level hiring may save costs in the short term, but it could create a shortage of experienced mid-level workers later. Future managers or executives do not enter their careers with leadership skills; rather, they develop gradually.

To build skilled leadership over the long term, companies must keep the path to gaining experience open for employees while also getting work done quickly with AI. Otherwise, today's decision to cut spending on hiring and training could create a shortage of skilled managers and leaders in the future.