AI and Entry-Level Jobs: What talent leaders predict

Andy Jassy, CEO of Amazon, recently projected an overall reduction in the corporate workforce in the coming year, attributing the shift to the increasing integration of artificial intelligence (AI). Similarly, Marianne Lake, CEO of Consumer and Community Banking at JPMorgan Chase, stated that her company anticipates a 10 percent reduction in employee headcount as it strategically integrates new AI tools into its operations. The latest influential voice to join this growing chorus is Jim Farley, CEO of Ford, who has issued a stark warning that potentially half of all white-collar jobs in the United States could be claimed by AI in the foreseeable future.

Many global leaders share the same sentiment about the disruption in the job market globally as AI becomes deeply integrated into the operations of organisations of all sizes and across all sectors. While many also view the technology as an opportunity to create new jobs and roles for the workforce, many leaders are still viewing the developments through a wait-and-see lens. For them, it is still early days in determining what AI's impact will be on the future of the workforce, especially on entry-level jobs.

But as businesses across India, and indeed the globe, embrace digital transformation, the nature of work is changing. It's a shift from repetitive tasks to value-added functions. Nowhere is this more acutely felt than at the entry point into the professional world, as many leading reports suggest.

According to a World Economic Forum report, while 170 million new jobs are projected to be created this decade, the rise of AI-powered tools threatens to automate as many roles as it creates, particularly for white collar, entry-level roles. Bloomberg finds that AI could replace more than 50% of the tasks performed by market research analysts (53 percent) and sales representatives (67 percent), compared to just 9 percent and 21 percent for their managerial counterparts.

We spoke with prominent Indian talent leaders to get their perspectives on how AI is influencing entry-level opportunities, the emerging skill sets in demand, and how organisations are preparing the next generation for a tech-augmented future.

Optimism vs. Caution: Contrasting perspectives on AI's impact

Richard Lobo, Chief People Officer at Tech Mahindra, with his extensive experience, injects a strong sense of optimism, particularly for new entrants. "I am very optimistic because, in my experience, when a new technology emerges, people at the early stages can adapt and learn more quickly." He firmly believes that "entry-level is not a barrier," and that fresh, enthusiastic talent has an inherent advantage in rapidly developing new skills, provided companies are willing to invest in their training. Lobo challenges the notion that only experienced professionals will benefit, stating, "it's not a question of whether entry-level employees will face a larger challenge. It's a question of whether people are willing to adapt and learn." He points out that technology is, in many areas, "getting easier to understand and learn," making broader AI adoption more accessible.

In stark contrast, Ganesh Natarajan, Chairperson of GTT Data Solutions and the former CEO of Zensar Technologies and Aptech, presents a more worrying perspective. He asserts that as companies "increasingly rely on AI to enhance efficiency, streamline operations, and drive growth, more entry-level jobs, particularly in the IT services sector, will be eliminated." Natarajan specifically targets "programming, coding, and migration" within IT as areas most impacted by AI automation.

He backs this with current observations: "Today, if you look at the IT services industry itself, while the industry is growing at 10 per cent, manpower is not being added at the same levels. On the contrary, I would think that there is a net reduction in workforce across all large (IT service) organisations. So that's a trend that's likely to continue." Natarajan offers a stark prediction: only "30-40 per cent of people who lose their jobs can be retrained, there will be a net decline of around 60 per cent of jobs in traditional areas, for which we should be mentally prepared." He warns that layoffs due to "role obsolescence" are a reality, and "not because they are bad at what they do."

Vivek Ranjan, Chief Human Resources Officer at Zensar Technologies, highlights a tangible shift already underway: "Over the last year or two, we've seen that customers are increasingly seeking expertise and experienced professionals. So, the demand for freshers has reduced slightly across the industry." This echoes a widespread sentiment that traditional pathways for new graduates are narrowing. However, he quickly adds a crucial caveat from a company in a "building phase" like his: "We haven't stopped hiring freshers. We still hire a certain proportion because we believe it is essential to continue investing in fresh talent."

Ranjan emphasises that the approach to nurturing this talent has undergone drastic changes. The "traditional model of onboarding freshers, training them for six months, and then deploying them is no longer effective." The focus has shifted to proactive, continuous investment in upskilling and reskilling, ensuring everyone, "irrespective of whether there's an immediate project need or not, becomes AI-ready." This is a defensive, yet proactive, strategy to stay ahead of the curve.

India's inherent advantage and the emergence of new roles

Despite these varying outlooks, there's a strong consensus that India holds a unique position in this global shift. Jennifer Mecherippady, Senior Vice President and AI Leader for Asia Pacific at CGI, champions India's enduring strength: "From an APAC and especially an Indian perspective, I believe we hold a significant advantage. Historically, India has been a global leader in providing technology, STEM, and IT talent to the world." She likens the current AI evolution to the advent of the internet, a major shift India successfully adapted to.

Mecherippady highlights the proliferation of Global Capability Centres (GCCs) in India, noting that "over 100 of them are added annually." Crucially, "These aren't being set up for low-end jobs like in the past; instead, they're establishing significant R&D centres, many of which are focused directly on AI." This solidifies India's global reputation as a hub for high-end talent. She emphasises that AI's impact isn't just at entry-level; it permeates "every level," reorienting how even senior architects and developers work. While acknowledging reports of potential job displacement, she counters with the prediction of far more new jobs created, especially given ageing populations in Western countries. The critical challenge, she concludes, is equipping new graduates to work effectively in this AI-driven landscape, which demands close collaboration between industry and academia.

New roles, previously unheard of, are indeed springing up. Mecherippady cites "AI coaches, AI trainers, and roles focused on data governance and ethics" as examples, highlighting that "AI is only as good as the data it is fed," making data integrity crucial.

Sector-specific resilience and the BFSI transformation

The conversation also highlights that AI's influence isn't uniform across all sectors. Dr Vinay Ranjan, Director of HR at Coal India, offers a compelling example of sector-specific resilience, particularly from Coal India. He firmly believes that "technology will ultimately create more jobs than it destroys," drawing parallels to India's IT revolution in the 1990s. For the massive workforce at Coal India, he declares "no fear at all" about job losses (because of AI). With India's rapidly growing economy and projected 10 percent annual increase in power consumption, coal remains a cornerstone of the nation's energy security for the next 10-15 years, requiring continuous induction of new talent. "The future of jobs in the coal industry looks very promising," he states, confirming a growth mode for the sector.

Meanwhile, Gaurav Terdal, Chief Human Resources Officer at SMFG India Credit, focuses on the BFSI sector's dynamic embrace of AI, which is fundamentally reshaping workforce demands. He echoes the sentiment that "the future of entry-level jobs lies in adaptation and upskilling," transforming roles into "more analytical, technology-driven, and human-centric functions." Companies like SMFG India Credit, he notes, are proactively "investing in their people, ensuring they are not just 'job-ready' but 'future-ready' for the opportunities AI is creating."

Many leaders believe that the future of the workforce isn't predetermined; it's being actively sculpted, one proactive talent strategy at a time.