MIT Researcher Says Replacing Entry-Level Gen Z Jobs With AI Could Hurt Companies in the Long Run

Companies that reduce entry-level hiring in favor of automation may weaken their future workforce, according to Andrew McAfee, a research scientist at MIT and co-leader of the university's Initiative on the Digital Economy.

McAfee said entry-level positions play a critical role in helping employees develop practical knowledge through workplace learning and mentorship. He warned that replacing these roles too quickly with automation could interrupt the traditional path through which employees gain experience and prepare for more advanced responsibilities.

He also pointed to another potential drawback: companies could miss out on the AI skills many younger workers already possess. Citing Deloitte's November 2025 findings, the report notes that 76% of Gen Z respondents had used standalone AI tools, making them the generation most familiar with the technology. McAfee said this familiarity could help organizations adopt AI more effectively.

The warning comes as the employment market for recent graduates remains challenging. According to Handshake's Class of 2026 Network Trends report, entry-level job postings were 2% lower than a year earlier and remained below pre-pandemic levels. Data from the New York Fed placed the unemployment rate for college graduates aged 22 to 27 at 5.6%.

Growing concern about AI is also affecting job seekers. A Monster survey found that nearly nine out of ten students graduating in 2026 worry automation could reduce entry-level opportunities, a significant increase from the previous year.

Despite these concerns, some employers continue investing in early-career hiring. IBM has said it plans to expand college recruitment, while Salesforce announced plans to hire 1,000 graduates and interns to support its AI initiatives. Amazon also intends to recruit approximately 11,000 software engineering interns in 2026, maintaining hiring levels similar to previous years.

The article also references a Goldman Sachs analysis suggesting that younger, college-educated workers have historically adapted well to technological change by developing new skills and moving into occupations that complement emerging technologies.