The number of entry-level job opportunities in the UK has fallen significantly since the launch of ChatGPT, as companies increasingly turn to artificial intelligence to streamline operations and reduce staffing costs.
New research from job search site Adzuna reveals a 32% drop in openings for graduate schemes, apprenticeships, internships and junior roles with no degree requirement since November 2022. These roles now account for just 25% of all UK job listings, down from 28.9% before AI adoption accelerated.
The findings suggest a growing reliance on AI to perform tasks previously handled by early-career employees. Many businesses now view AI as boosting efficiency and cutting headcount.
AI displaces junior roles across sectors
BT chief executive, Allison Kirkby, recently said AI could lead to deeper staff cuts at the telecoms company, which previously announced plans to reduce its workforce by up to 55,000. Similarly, Dario Amodei, CEO of AI firm Anthropic, has warned that as many as half of all entry-level office jobs could be eliminated within five years, potentially pushing unemployment up by 10% to 20%.
Figures support a broader trend identified by its competitor, Indeed, which reported the most challenging graduate jobs market since 2018. According to Indeed, the number of roles targeting recent graduates was down 33% in mid-June compared to last year.
AI is now being used to handle tasks once reserved for junior staff. Klarna, the Swedish fintech company, reports that its AI assistant handles two-thirds of all customer service queries. IBM has also announced that it uses AI agents to conduct the work of hundreds of HR staff. However, the company has said this has allowed it to increase hiring in areas like software development and sales.
New skills in high demand as roles evolve
The longer-term impact of AI on the job market remains uncertain. While some experts argue that AI will destroy more roles than it creates, others believe new jobs will emerge. The International Monetary Fund (IMF) estimates that 60% of jobs in advanced economies like the UK and the US are exposed to AI, half of which could be negatively affected.
However, the Tony Blair Institute has suggested that AI may create enough new roles in the private sector to offset losses, provided businesses and workers adapt quickly.
There are also signs that AI expertise is becoming highly valued. A recent PwC report found that in 2023, workers with AI skills earned on average 56% more than those without. That figure is up from 25% the year before, highlighting the growing demand for technical capabilities in the workplace.
The same report noted that in jobs most exposed to AI, such as financial analysts, the required skills are changing 66% faster than in less exposed roles, like physical therapy. This shift may make it harder for workers to stay updated with changing job requirements.
Technology Secretary, Peter Kyle, has urged individuals and employers to act quickly to understand and adopt AI tools. “Most people are approaching this with trepidation,” he said. “Once they start, it turns to exhilaration, because it is much more straightforward than people realise, and far more rewarding than people expect.”
As technological change accelerates, businesses and workers must choose to adapt to AI or risk falling behind.
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