The rise of artificial intelligence is significantly altering the landscape of entry-level jobs, prompting financial experts to caution companies against neglecting talent development. As corporate executives streamline trainee positions to adapt to these changes, recent graduates face intensified competition for a diminishing number of roles. This shift threatens to undermine established apprenticeship models that have long been foundational to workforce development.
A report by NVIDIA highlights that 73 percent of leadership in financial services view AI as essential for success, with 89 percent confirming that the technology has boosted revenue. However, experts warn that cutting back on talent development could lead to long-term deficiencies in skilled workers. According to Peter Watkins, senior director of university programs at the CFA Institute, the current expectations for new hires overlook crucial developmental phases. He stated, “When you were an apprentice doing something 20 years ago, you needed about two or three years of work alongside other people.”
The consequences of this shift are becoming evident. Financial institutions are increasingly leveraging automation to cut costs and satisfy shareholders. Yet, as Erik Stettler, chief economist at Toptal, points out, this approach may have detrimental effects on the future workforce. “You have a responsibility to foster tomorrow’s talent for your organisation. AI is not an excuse to hold off on that,” he emphasized.
“You need to be playing the long game,”
Stettler added, underscoring the importance of nurturing talent even during transitional periods.
While AI undoubtedly plays a role in the reduction of entry-level positions, it is not the only factor contributing to this trend. A Cengage Group survey indicates that 46 percent of employers attribute the decline in hiring to AI and emerging technologies. Simultaneously, nearly half of the respondents cited broader economic uncertainties and a tight labour market as significant influences. Watkins reiterated this sentiment, stating, “Firms possibly are not recruiting as many as they have some years ago, but that’s as much about economics as AI.”
Young professionals are now faced with unprecedented challenges as they launch their careers. The Cengage Group survey revealed that 76 percent of employers plan to hire for fewer or the same number of entry-level positions in 2025. Additionally, a study from the Federal Reserve Bank of New York found that 42 percent of recent graduates are currently underemployed, highlighting the growing gap between education and available opportunities.
The increasing reliance on software to replace junior staff raises concerns about the loss of essential human judgment necessary for guiding automated systems. Neil Costa, founder of the recruitment agency HireClix, cautions against completely transferring foundational tasks to machines. He warns that such decisions could compromise oversight in financial operations. “They may benefit now by saving costs on the human component of their business operations or employee expenses, but I think there’s going to be a toll to pay afterwards,” Costa stated.
Industry leaders are urging companies to adapt to technological advancements while simultaneously investing in the development of resilient innovators. Costa points out that younger generations are adept at embracing new software quickly. He poses a critical question: “Why would you just take the short-term gain by dodging some payroll expenses now, versus the potential upside on what that could generate for the top line?”
As applicants navigate these changes, demonstrating constructive use of technology remains essential. Stettler emphasizes the importance of leveraging human creativity to surpass algorithmic capabilities. He notes, “The difference between an entry-level job today and when I was starting out is that now you will be thinking on the systems level from day one.”
The evolving job market, driven by AI and economic factors, demands a balanced approach from companies. While automation may streamline operations, the long-term health of organizations hinges on their commitment to nurturing talent and providing opportunities for the next generation of professionals.
