Name: AI impact on graduate jobs
Uploaded: 2025-12-08T17:51:30.024Z
Duration: 3 min 23 s
Description: CNBC’s Ritika Gupta takes a deep dive into how AI is replacing entry-level roles.

CNBC’s Ritika Gupta takes a deep dive into how AI is replacing entry-level roles.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Artificial intelligence is significantly impacting the graduate job market, particularly in the UK, where postings for entry-level roles requiring a degree have dropped by nearly two-thirds since 2022. Major employers are reducing graduate positions and many companies are reallocating resources from staff to AI, according to recent surveys.

Despite these changes, experts and training providers emphasize that AI is transforming rather than eliminating jobs. Graduates with strong technical skills and the ability to work alongside AI tools are increasingly in demand, and those who adapt by learning AI-related skills may find themselves at an advantage in the evolving job market.

AI impact on graduate jobs

AI is transforming almost every aspect of the workplace. And for today's graduates, there are growing concerns that AI is replacing traditional entry-level roles, the very jobs young people rely on to get their foot in the door. But the picture may be more nuanced. According to job search engine Adzuna, postings for entry-level roles requiring a degree have dropped by almost two-thirds in the UK since 2022, the year ChatGPT launched. That's twice as many as for all entry-level roles. Graduate employers such as BT, PwC and Microsoft are cutting jobs, while half of UK companies want to redirect money from staff to AI, according to a BCG survey. However, for FDM, a global tech and business talent solutions company that trains graduates to use AI, AI is transforming jobs rather than wiping them out. CEO Rod Flavel said graduates who can work alongside these tools are increasingly in demand. What we will see is core, certainly tech skills, whether it's for development, those will be prized, those aren't going away, not at all. Most of these AI tools produce that form of code and you need people who understand what the AI is doing. So it is a change, it will be new for everybody, but there are hard-core tech skills that you need to have and today's graduates are not disadvantaged, they will be able to survive going forward into this marketplace. I spoke to two recent FDM recruits who struggled in the jobs market for a year after graduating university. Since joining FDM, they have learnt key AI skills they hope will make them more marketable for future jobs. They encourage other new graduates to see AI as an opportunity. Most of them will see it as a threat, but in my experience, I would say we should rather take it on and actually study it, do a bit more research and see how we can use it effectively. A lot of tech, like automated jobs, can be done by AI now, but at the same time, I would say it's a tool that graduates can use to benefit their own learning at the same time. I spoke to Neil Carberry, REC Chief Executive, about how graduates can prepare for AI in the workplace. The jobs market is changing faster with the advent of AI than we have seen at any time before. But we also know what happens when jobs markets change, which is some jobs disappear, other jobs appear, and it's really a question of how people transition. The most important thing is that we get support around people entering the labour market to help them understand where the opportunities will be, whether that's from their college, from their university, or it's about more employers engaging with offering careers advice, because the choices that people have are changing fast, and there is a risk that people get a bit lost in that. The challenge now is training. Employers are having to equip young people with the skills needed to use AI effectively, and those that can prove they understand both the technology and its limits may find themselves at an advantage, not a threat. Ritika Gupta, CNBC, London.

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