The future of entry-level jobs in corporate America is increasingly uncertain as artificial intelligence (AI) transforms the workforce. While some figures in the tech industry, like Anthropic CEO Dario Amodei, warn that AI could eliminate up to half of these positions within a few years, others, including Salesforce CEO Marc Benioff, argue that such fears are exaggerated. Benioff, whose company has seen its stock price drop over 31% from a year ago, announced on X that Salesforce is actively hiring 1,000 new graduates and interns to develop its AI systems, countering the narrative that AI will decimate entry-level roles.
In his post, Benioff wrote, “You are right they said AI would kill entry-level jobs. Meanwhile these grads and interns are building it—powering Agentforce & Headless360 at Salesforce.” His comments followed a statement from David Sacks, the Trump administration’s AI and crypto czar, who highlighted a “narrative violation” regarding AI’s impact on hiring. Sacks cited recent statistics from the Wall Street Journal showing a decline in unemployment rates among 20- to 24-year-olds, which is down to 5.6% from a high of 9.2% last September, according to the Federal Reserve Bank of St. Louis. Benioff emphasized that he is “locked on” to this hiring trend.
Despite these optimistic signals from certain quarters, the broader effects of AI on the labor market are becoming apparent. Earlier this year, Jack Dorsey’s Block cut 40% of its workforce in response to AI efficiencies, signaling a potential shift many CEOs may follow. Other tech giants, including Oracle and Meta, have also laid off employees to offset high costs associated with AI investments, rather than to streamline operations through increased efficiency.
However, these layoffs have not yet significantly impacted macroeconomic data. Employers added a stronger-than-expected 178,000 jobs last month, lowering the unemployment rate to 4.3%, suggesting that hiring remains robust overall, primarily driven by the healthcare sector. A Salesforce spokesperson declined to elaborate beyond Benioff’s statements on X.
Why some firms are increasing hiring even as AI automates tasks
While some companies are reducing their workforce due to AI-driven efficiencies, others are ramping up hiring. In February, IBM announced it would triple its hiring of entry-level positions, particularly in software development, anticipating that these new hires would facilitate long-term growth as AI adoption unfolds. Nickle LaMoreaux, IBM’s chief human resources officer, noted in an interview, “The companies three to five years from now that are going to be the most successful are those companies that doubled down on entry-level hiring in this environment.”
A report from the National Association of Colleges and Employers (NACE) highlighted that employers plan to increase hiring by 5.6% for the class of 2026, particularly in sectors perceived as vulnerable to AI, such as information services, engineering, and professional services. Notably, only 11.4% of employers surveyed indicated they would reduce hiring, with just under 16% attributing this decision to AI.
This uptick in hiring marks a shift from earlier job cuts at Salesforce, where the company reportedly reduced fewer than 1,000 positions in February, focusing on roles in marketing, project management, data analytics, and Agentforce, the AI product Benioff mentioned in his post. In previous statements, Benioff noted a reduction in Salesforce’s customer support workforce from 9,000 to 5,000.
Looking ahead, leaders like Nvidia CEO Jensen Huang maintain that AI will not replace human workers outright. Instead, he envisions a model where large numbers of AI agents work alongside employees, enhancing productivity without necessarily reducing headcount. “In 10 years, we will hopefully have 75,000 employees, as small as possible, as big as necessary. They’re going to be super busy,” Huang stated, predicting that those employees will collaborate with 7.5 million AI agents.
Benioff reiterated in a recent interview that while he wouldn’t increase hiring for software developers or service agents due to AI’s impact, there is an ongoing need for more sales personnel due to heightened demand. “I need more capacity because we have more demand than ever,” he emphasized.
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