AI encroaching upon entry-level positions: Has automation replaced junior employees?

In the rapidly evolving world of work, artificial intelligence (AI) is making significant strides, with many companies already in the process of determining which tasks can be supported by machines and which are better left to humans.

The weakening economy has led to a decline in new hires, with fewer job openings overall and increased competition for entry-level positions. However, despite the economic downturn, certain sectors continue to experience a shortage of skilled workers. According to the latest skills shortage analysis by the Federal Employment Agency, healthcare, construction, and craft professions remain in high demand.

AI is transforming the office sector, with predictions suggesting that half of all entry-level jobs could be lost due to AI applications in the next five years. Yet, AI is particularly important for tech startups, with 82% of them currently using the technology, and another 16% planning or considering its use.

At present, nine percent of companies are using generative AI, primarily in customer contact, marketing and communication, research and development, and production processes. Another 37% of companies plan to use or consider using generative AI.

The Job-Futuromat, an online tool from the Institute for Employment Research (IAB), provides insights into which activities in which professions could already be automated. In Germany, career platform Stepstone counted 45% fewer entry-level positions across all sectors in the first quarter of 2025 than the average of the last five years.

As AI becomes more prevalent, companies are using AI tools for automatic preselection based on certain criteria, making it significantly more difficult for job applicants to stand out. To increase their chances of employment, job beginners should be flexible in their workplace and field of activity.

Michael Stops, an IAB expert, suggests that job seekers bring an openness and willingness to learn, including for future new technologies. Understanding how AI works, where its limits lie, how to interpret AI results, and how to develop creative solutions from them are important skills for job beginners. The ability to evaluate information generated by AI will be an important skill for the future.

Career coach Johannes Junker recommends job applicants to clearly outline their motivation for a specific company, department, and project. He states that while someone who is very good at their job will continue to be employed, mediocrity may no longer be sufficient. The factor of motivation is crucial in choosing a career, and one should critically ask oneself which topics one is willing to acquire the corresponding expertise for.

AI may relieve employees of stupid routine tasks, potentially giving job beginners the opportunity to advance to more responsible tasks more quickly. However, it is important to note that entire job fields will not disappear due to AI, but it will be necessary to be able to work with the technology.

AI is especially frequently used in healthcare (medical diagnosis), finance (fraud detection, risk management, algorithmic trading), retail and e-commerce (personalized recommendations, price optimization), transportation (traffic control, autonomous driving), logistics (inventory forecasting, warehouse optimization), and technology sectors including natural language processing and computer vision applications. These skills require not only specialist knowledge but also a high level of soft skills such as communication and cooperation.

In the US, there are currently a third fewer job offers for junior positions in the tech sector than in 2020, according to a study by the job portal Indeed. Despite the challenges, those who are adaptable, willing to learn, and able to work with AI are likely to find opportunities in this evolving job market.