In recent years, there have been many discussions on the role of AI in replacing humans in the labor force. It is not clear whether or when it will happen on a wider scale. But this happens especially in one industry: the tech industry.
Researchers at venture capital firm Signalfire recently released theTalent Report“For 2025, recruitment and employment trends across the technology industry were analyzed.
According to a report from SignalFire, the big gain is new graduate recruitment reject. And the regression is not comprehensive. The recruitment level for experienced roles such as mid-to-high-level positions is still strong, while entry-level technical positions have taken a big hit.
According to the report, recent graduates at major tech companies accounted for only 7% of their employees last year, down 25% from the previous year. There is no progress in the startup side, with new graduates accounting for only 6% of new employees, down 11% from 2023.
The report mentioned some factors that could lead to a decline in entry-level tech positions, so this is not a result of AI. Interest rates are much higher than during the technological boom during the peak of the Kuved pandemic. Coupled with other issues, it provides smaller rounds of funding for startups and large tech companies looking to reduce costs.
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But even if there are other factors, AI yes An important factor.
If AI is very good at one thing, it is the more mundane basic coding tasks that might be assigned to entry-level workers. In addition, these tasks can also be easily automated using AI encoding tools. In recent months, Google has released a new AI encoding tool called Jules (currently available for free), and the latest models of Chatgpt and Anthropic are particularly good at coding. Mark Zuckerberg recently said he hopes AI will write half of the meta code by 2026.
Even experienced programmers are affected by the AI transformation. As a recent article reported The New York Timesworkers at companies like Amazon say AI has transformed its work into a factory-like assembly line. Other coders welcome AI because it frees them from monotonous coding efforts.
Additionally, companies have been looking to expand their AI initiatives and play more roles in the machine learning and data engineering categories. These tend to be more technical roles, often filled by those who gain more experience than recent graduates.
Most importantly, this reconfiguration focused on AI not only leads to entry-level coding efforts, but also reduces non-technical efforts. According to SignalFire, many recent graduates have broken into the industry through non-technical roles such as non-technical marketing, recruitment, design and sales. The company simply didn’t hire those roles as it used to be.
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