In recent times, there has been extensive conversation regarding AI taking over human positions within the workforce, with ambiguity surrounding when this may transpire more broadly. Nonetheless, it’s already happening within the technology sector. SignalFire, a venture capital firm, has just released their “State of Talent Report” for 2025, which examines recruitment and employment patterns in the tech field.

The primary conclusion of the report highlights a drop in the hiring of new graduates. While recruitment for mid- and senior-level roles remains robust, entry-level tech positions have notably fallen. In the past year, new graduates made up merely 7 percent of hires at major tech firms, marking a 25 percent decrease from the prior year. For startups, new graduates represented only 6 percent of new hires, down 11 percent from 2023.

Numerous factors contribute to the reduction in entry-level tech positions, not exclusively due to AI. Elevated interest rates relative to the tech boom witnessed during the COVID pandemic and various other challenges have resulted in diminished funding for startups and cost reductions by major tech enterprises.

Regardless, AI plays a significant role. AI is proficient at performing fundamental coding tasks generally assigned to entry-level employees, and these functions can be automated with AI coding tools. Google has recently introduced a new AI coding tool known as Jules, while ChatGPT and Anthropic’s models are especially skilled at coding. Mark Zuckerberg has conveyed aspirations that AI will generate half of Meta’s code by 2026.

Even seasoned programmers are influenced by the shift toward AI. As reported by The New York Times, employees at companies such as Amazon have indicated that AI has transformed their jobs into processes resembling assembly lines. Some programmers embrace AI for alleviating them from tedious coding responsibilities.

Organizations are broadening their AI initiatives and recruiting more in machine learning and data engineering, roles traditionally occupied by more experienced personnel. This emphasis on AI has also led to a decrease in hiring for non-technical positions. Many recent graduates typically break into the industry through non-technical roles such as product marketing, recruiting, design, and sales, yet firms are now hiring less for these positions.