Gartner Says 22% of Firms Freeze Entry-Level Hiring as Only 20% See Major AI Value
Updated
Updated · Yahoo Finance · Aug 9
Gartner Says 22% of Firms Freeze Entry-Level Hiring as Only 20% See Major AI Value
3 articles · Updated · Yahoo Finance · Aug 9
Summary
A Gartner survey of 110 CHROs found 22% said at least one business leader had stopped hiring for entry-level roles because of AI automation.
That pullback comes even though 95% of organizations have implemented AI in the past year and only 1 in 5 report significant or transformational value from it.
Broader labor data point the same way: Challenger said AI drove 10,970 of July's 33,429 announced job cuts—the top reason for a fifth straight month—even as hiring plans rose 25% year over year.
Stanford's July brief found employment for 22-to-25-year-olds in AI-exposed occupations has fallen since ChatGPT's 2022 launch, while older workers' employment stayed stable or increased.
Gartner warned companies that cut early-career pipelines may later pay more for experienced external hires, arguing junior roles should be redesigned rather than eliminated.