The rapid adoption of artificial intelligence across industries may create serious challenges for young professionals entering the workforce. Bill McDermott, chief executive of ServiceNow, has warned that increasing reliance on AI by businesses could significantly impact entry-level job opportunities.
Speaking to the media, McDermott said unemployment among new graduates could reach the mid-30s within the next couple of years as companies increasingly automate tasks using AI systems. According to him, many roles traditionally handled by employees may soon be managed by AI agents, making it harder for young professionals to stand out in the corporate environment.
McDermott also highlighted that tools developed by ServiceNow are helping businesses reduce hiring costs. He said the company’s software has already taken over 90% of the use cases that were previously handled by humans in customer service.
Companies accelerating the shift toward AI
The comments come at a time when companies across industries are cutting jobs while investing heavily in artificial intelligence technologies. Meta is reportedly considering large-scale layoffs that could affect 20% of its workforce as it spends heavily on AI infrastructure and seeks higher efficiency through AI-assisted workers.
In February, fintech firm Block, led by Jack Dorsey, announced plans to lay off around 50% of its workforce as automation expands. Meanwhile, software company Atlassian said it would cut about 10% of its employees to support its investments in AI.
Tech layoffs continue as companies pivot to AI
During the first 2 months of the year, the technology sector recorded layoffs affecting more than 40,000 employees. Job cuts were reported across industries including logistics, manufacturing, and fintech.
Industry observers say the trend reflects a broader shift in corporate spending. Instead of simply cutting costs, companies are reallocating budgets from human payroll to AI infrastructure, including advanced data centres and hardware.
Several technology firms, including Oracle, have already announced layoffs linked to heavy spending on AI development.
Businesses are also focusing on AI-assisted efficiency. Earlier, Jack Dorsey explained that 4,000 job cuts at Block were driven by AI tools capable of handling a wider range of tasks, allowing the company to operate with smaller teams.
At the same time, AI systems are increasingly taking over functions such as customer service and routine coding. Companies including Salesforce and Klarna have already reduced staff in these areas as automation expands.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
