Hiring managers in the United States are turning to artificial intelligence rather than recent college graduates for many entry‑level roles, a new survey shows.
AI preferred over new talent in nearly half of firms
The July 17 report from ResumeTemplates.com found that 48 % of the 1,000 managers surveyed would rather spend money on AI tools than hire and train a fresh graduate. The poll targeted companies with more than 100 employees, indicating the trend is spreading among midsize and larger firms.
Despite the shift, 65 % of respondents said they expect to hire the same number or more workers this year compared with last year, suggesting the overall market still has room for the class of 2026 graduates. Still, 23 % anticipate hiring fewer or none at all, while 12 % were uncertain about their hiring plans.
Concerns about skills and work ethic
Nearly 70 % of managers reported at least one character concern about recent graduates. One‑third cited a lack of work ethic, and 76 % said new hires often need help with basic documents such as memos, contracts and budgets. The survey also revealed that 41 % believe recent grads cannot write a professional email, and 40 % think they lack the ability to analyze or interpret data.
Entry‑level pay appears steady, but expectations have risen. More than three‑fifths (61 %) of managers would only consider a graduate without internship experience for certain positions, or not at all. Trust remains low.
Related: Triple visa fee could deter international students
Only 17 % said they fully trusted new graduates to represent the company in front of customers.
Companies are reshuffling budgets to accommodate the trend. Over half (55 %) have moved at least part of their entry‑level hiring budget toward AI, and 30 % say AI has reduced their need for graduate hires. As a result, senior staff are shouldering more responsibilities. Forty‑five percent of organizations now ask a senior employee plus AI to perform the work that would traditionally be handled by several entry‑level workers, and in 20 % of cases senior staff are covering three or more roles.
A joint study by Cognizant and Pearson reported that 94 % of HR leaders expect AI to create new entry‑level jobs within five years, and 96 % anticipate those roles evolving into positions that involve managing or supervising AI systems. This suggests that the skill set required for future entry‑level work may shift toward AI‑related competencies rather than traditional administrative tasks.
Hiring managers are also adjusting their recruitment strategies. Some firms are “holding back opportunities until grads prove they can do the basics,” according to the report, indicating a higher bar for candidates who lack prior experience. The emphasis on proven competence may push graduates to seek internships or apprenticeships that provide exposure to AI tools.
Overall, the situation for 2026 graduates is more competitive than in previous years. They must now contend not only with peers but also with the growing capabilities of AI that can perform many routine functions. The shift could accelerate the need for graduates to acquire digital literacy and AI‑related skills before entering the workforce.
