- Graduate unemployment to rise as AI agents replace entry-level workers
- Palantir and Amazon already expect the number of people to decrease
- ServiceNow Says AI Agents Can Do Customer Service Jobs
ServiceNow CEO Bill McDermott has become the latest in a long line of business leaders to suggest that the adoption of AI, particularly agent AI, could create big challenges for entry-level workers.
talking to CNBCMcDermott indicated that unemployment among college graduates could reach the mid-30% range within a few years as AI agents begin to replace more entry-level human workers.
As a result, graduates are finding it harder to stand out in a shrinking market, and we’re already seeing this play out with an unemployment rate of 5.7% for recent graduates by the end of 2025 (according to the Federal Reserve Bank of New York).
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Graduates are losing jobs to AI
“A lot of the work will be done by agents. So it will be a challenge for young people to differentiate themselves in the corporate environment,” McDermott said.
In addition to graduates, AI also appears to be revolutionizing other areas of white-collar employment, such as coding and marketing, marking a major shift from previous workforce trends. For example, automation and other changes of the industrial revolution focused primarily on manual labor, but AI is now affecting knowledge workers.
Palantir CEO Alex Karp also recently revealed plans to increase revenue while reducing headcount by 10-fold, while Amazon CEO Andy Jassy has also stated the expectation that the company’s headcount could be reduced.
“I think it’s coming faster than people anticipate,” McDermott added, although no clear solution was indicated.
ServiceNow’s AI tools have reportedly already eliminated about 90% of the use cases that once required human customer service agents.
The company recently posted a 25% year-over-year increase in full-year tax revenue; McDermott noted that “there is no AI company in the enterprise better positioned for profitable and sustainable revenue growth than ServiceNow.”
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