Will AI Eliminate Entry-Level Jobs in the Workforce?
Hello, and welcome to TechScape
This week, I find myself reflecting on how my early journalism career might have unfolded if generative AI had been a factor at the time. In other developments, Elon Musk departs with a legacy of disarray, while influencers are monetizing the text prompts they provide to AI for art creation.
AI Threatens the Job You Had After College
Executives are warning that generative artificial intelligence may jeopardize the entry-level job market that many college graduates traditionally rely on. Dario Amodei, CEO of Anthropic, the company behind the AI model Claude, recently remarked to Axios that he anticipates AI could eliminate up to 50% of all entry-level white-collar positions, resulting in an overall unemployment rate reaching 20% within the next five years. Such dire predictions might serve more as promotional statements about the capabilities of his product than factual forecasts; in essence, it could push businesses to adopt his solution to stay competitive.
Remarkably, these alarming insights were shared amidst the announcement of a new version of Claude, in which Amodei claimed the AI could code independently for extended periods. OpenAI’s CEO, Sam Altman, has also conveyed similar concerns. Furthermore, voices outside of the AI industry have echoed this warning. Steve Bannon, a former Trump administration official turned influential podcaster, concurred with Amodei, suggesting that automation will become a significant topic in the 2028 US presidential elections. A March report from The Washington Post indicated that over 25% of computer programming jobs in the US had vanished in the last two years, coinciding with the launch of ChatGPT in late 2022.
Days before Amodei’s predictions were made public, a LinkedIn executive shared comparable pessimistic forecasts, citing the platform’s data in a New York Times piece titled “The Bottom Rung of the Career Ladder is Breaking.” Aneesh Raman, LinkedIn’s chief economic opportunity officer, wrote, “There are growing signs that artificial intelligence poses a real threat to a substantial number of jobs that typically serve as the initial stepping stones for new generations of workers.” The Federal Reserve also expressed troubling observations about the job market for recent graduates, revealing a noticeable downturn in the first quarter of 2025, with an unemployment rate of 5.8%, the highest since 2021, and a sharp rise in the underemployment rate to 41.2%. The Fed didn’t specify a direct cause for this decline.
The likely outcome of AI’s infiltration into entry-level jobs is a transformation of these roles into something different. The job market might evolve into a state where AI proficiency is as crucial as knowledge of Microsoft Office was before. Employers may demand increased productivity and output; if AI can handle most of the coding, junior software engineers might need to significantly ramp up their performance.
Speaking of Microsoft, CEO Satya Nadella announced that AI currently contributes to writing 30% of the company’s code, suggesting this could represent the future of software development. While that claim may hold some truth, it’s also feasible that Nadella is exaggerating the practical application of that code. Mark Zuckerberg of Meta has been more direct in his statements, asserting that by the end of 2025, his company will no longer require mid-level coders. This comment was shortly followed by a 5% workforce reduction announcement at Meta.
The immediate adjustment period, however, poses significant challenges. Recent graduates who did not have AI integrated into their education may find employers skeptical about their preparedness for this new landscape. The uncertainty doesn’t stem from the graduates alone; employers themselves are still determining their expectations from AI.
Axios highlighted this issue, stating that companies are prematurely holding off on hiring replacements, betting that AI will eventually fulfill these roles. The journalism sector, in particular, stands as a potential indicator of broader trends. Entry-level journalism often involves aggregating news from various sources—tasks that AI could accomplish effectively, provided the information is accurate. Having started my career in similar roles, I recognize the diminishing entry-level opportunities in my field. Recently, Business Insider laid off 20% of its workforce, with CEO Barbara Peng announcing a commitment to an “AI-first” approach.
Axios also clarified its position on AI, noting the importance of human oversight in its reporting process and emphasizing that managers must justify why AI is unsuitable for specific tasks before approving its use.
The Week in AI
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Musk Leaves Behind a Sticky Trail
Elon Musk announced his departure from the White House last week, concluding a contentious tenure as a senior adviser and leader of the so-called “department of government efficiency” (Doge). Donald Trump hosted a press conference to mark Musk’s exit, coinciding with news reports alleging that he had heavily relied on substances during the campaign.
My colleague Nick Robins-Early assessed the situation, noting that Musk leaves behind a chaotic legacy filled with unfulfilled initiatives and weakened agencies. His departure raises questions about how the nebulous task force will operate without him, along with uncertainty regarding potential efforts to restore programs and services that were cut.
Musk’s original vision for Doge involved saving $2 trillion by eliminating waste and fraud and overhauling government software systems. To date, Doge claims to have reduced the budget by approximately $140 billion, though its reports of savings have faced criticism for inaccuracies. Trump’s new tax legislation, opposed by Musk, may negate any savings achieved by Doge, as it is expected to increase the deficit by $2.3 trillion. Moreover, the promises of modernized software frequently materialized into AI chatbots, many of which were already in development during the Biden administration. The predominant impact of Doge appears to be its dismantling rather than significant advancements.
Government services and humanitarian support have faced significant cuts under Doge’s administration. Agencies such as the National Oceanic and Atmospheric Administration, which is responsible for weather forecasting and natural disaster response, have been particularly hard hit. The Department of Veterans Affairs has experienced severe crises, while several smaller organizations, including one focused on policy related to homelessness, have effectively ceased operations. Doge’s decisions have severely weakened multiple bureaus, leaving doubts about whether the remaining staff will strive to update and maintain their services or completely discontinue them. As Musk shifts his attention back to Tesla and SpaceX, the agencies that have suffered are left to restore the damage.
With Musk returning to his tech ventures, many of the former employees and inexperienced young engineers hired under Doge will continue working within the government. A pressing question about the future of Doge revolves around whether these staff members, some of whom had near-unrestricted access to sensitive government data, will still enjoy the same authority they had while working under Musk.
A Mess of Misinformation
Misleading information on social media has significantly contributed to escalating tensions, particularly between India and Pakistan. A study discovered that over 50% of the top 100 mental health TikToks contain false information. Additionally, there were reports of chaos on German autobahns, prompted by erroneous Google Maps notifications claiming that they were closed.
Influencers Selling AI Prompts
In a surprising twist, influencers have started selling the text prompts that generate AI art. For instance, the Instagram account @voidstomper, which has amassed 2.2 million followers by posting AI-generated grotesque videos, recently offered to sell ten prompts. They stated, “I didn’t want to sell these. But I’m broke and these still go viral. So here: 10 raw horror prompts straight from my archive. Some got me hundreds of millions of views. Some barely make sense. All of them work. Use them in any AI video tool. Just don’t pretend you wrote them. VAULT_DUMP_1 is live. Link in bio. No refunds. You’re on your own.” The administrator did not respond to requests for an interview.
This trend isn’t isolated; there are marketplaces specifically for the sale of AI prompts. Ben Stokes, founder of PromptBase, notes that around 20,000 sellers utilize his platform, which sees thousands of transactions each month, resulting in payouts in the seven figures since 2022. Stokes describes the sale of prompts by social media influencers and content creators as a niche market that mainly serves as a supplementary income for graphic designers, artists, and photographers.
When purchasing a prompt from a marketplace like PromptBase, buyers generally receive a template rather than a specific sentence. Stokes explains, “For example, if the prompt creates posters of famous landmarks in a vintage style, sections within the prompt might be in square brackets like [LANDMARK NAME], allowing you to customize it to a specific site, like the local pier in your town.”
While one might wonder why they would buy a prompt instead of crafting their own, Stokes elaborates that a specific audience seeks high-quality, reliable prompts that facilitate the integration of AI into their business workflows. Gaining consistent outputs often necessitates effective prompts, making purchased options more appealing, especially since generating precise results can be costly for businesses.
Still, some specialists within the AI-generated art community view this practice as absurd. An Instagram account known as HolyFool36 expressed strong opposition, stating, “Frankly, I find it as an insult to my sensibilities. Generative AI requires no skill – almost anyone can reverse engineer these prompts for free.” They further mentioned their attempts to guide Void Stomper toward building a brand instead of resorting to selling prompts, acknowledging the reality that everyone must find a way to pay their bills.
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