Will AI Displace Entry-Level Jobs? | Artificial Intelligence (AI)

Greetings and welcome to TechScape. This week, I’ve been contemplating how different my initial foray into journalism would have been if generative AI had existed. Additionally, Elon Musk leaves a trail of perplexity behind him, while influencers explore the art of selling texts that inspire AI-generated artwork.

AI Endangers the Jobs of Recent Graduates

Executives within Genetic Artificial Intelligence shared rigorous evaluations of the entry-level job landscape last week, indicating that the positions secured with degrees might soon be at risk.

Dario Amodei, CEO of Anthropic, has developed the versatile AI model Claude. In an interview with Axios last week, he projected that AI could eliminate half of all entry-level white-collar jobs, potentially driving the overall unemployment rate to 20% within five years. A possible explanation for such alarming forecasts from AI executives may be linked to their desire to amplify the appeal of their products, suggesting they possess the capability to dismantle significant corporate structures.

Should your purchasing and employment choices align with Amodei’s vision, consider investing in his products and stay ahead of the productivity curve. Amodei announced a new iteration of CEO CLOUDE the very same week he shared these insights. Similarly, OpenAI’s Sam Altman has adopted a comparable strategy.

Nonetheless, voices outside the AI creation circle reflect Amodei’s warnings. Steve Bannon, an influential podcast host and former Trump administration member, echoed Amodei’s concerns, suggesting that automated employment will pose a significant challenge in the 2028 US presidential campaign. A March report from the Washington Post indicated that over a quarter of all US programming positions had vanished over two years, attributing this trend to the disruptive impact of ChatGPT’s release in late 2022.

A few days before Amodei’s comments, a LinkedIn executive provided a stark evaluation based on data from the social network. A New York Times essay emphasized, “You can observe the Lang below your career’s ladder.”

“Growing evidence points to artificial intelligence posing a genuine threat to a substantial number of jobs traditionally assigned to new graduates,” stated Anesh Raman, LinkedIn’s Chief Economic Opportunity Officer.

The US Federal Reserve recently released findings regarding the job market for college graduates in the first quarter of 2025. The Federal Reserve’s report indicated, “The labor market for college graduates deteriorated significantly in the first quarter of 2025, with the unemployment rate rising to 5.8%, the highest level since 2021.” The Fed did not specify any particular causes for this decline.

AI’s influence on entry-level roles is likely to result in a restructuring of these positions. The job market might oscillate between Amodei’s bleak outlook and the pre-ChatGPT era. Familiarity with AI will become essential, akin to proficiency in Microsoft Office, and employers will expect enhanced productivity standards. If a robot can handle the majority of the tasks assigned to a junior software engineer, it will necessitate a fivefold increase in output, similar to the previous expectations.

In late April, Microsoft CEO Satya Nadella claimed that AI is responsible for 30% of Microsoft’s code. This could signify the future landscape of software development. While it may hold some truth, it is also plausible that Nadella, leading a company capitalizing on the AI boom, is exaggerating its contributions in an effort to market it. Mark Zuckerberg from Meta has made even bolder assertions, suggesting that his company may no longer require mid-level coders by the end of 2025, following a 5% staff reduction.

Nevertheless, the immediate transition can be quite challenging. Recent graduates may find themselves ill-equipped, as their educational experiences did not emphasize AI, leading employers to doubt their preparedness for this evolving job landscape.

This predicament is not solely the fault of graduates; employers often remain unclear about their expectations surrounding AI. Axios has been investigating Amodei’s forecast, detailing how AI job cuts are advancing rapidly. Companies are hopeful that they can find alternatives to hiring employees by banking on AI’s capacity to fulfill similar roles.

An example from journalism might serve as a cautionary tale. Entry-level journalism jobs often involve compiling news from various sources in a manner consistent with the employing organization. AI can perform this task effectively when accuracy is ensured. When I first began, I spent several years refining my skills in this area. The trends indicated by Amodei’s claims resonate within our industry, where entry-level positions are in decline. Recently, Business Insider, a digital publication focused on finance and business news, terminated 20% of its workforce, with CEO Barbara Penn asserting the newsroom will prioritize “AI-first” strategies.

Axios itself highlights revelations concerning its own AI policies during an Amodei interview.

“Axios requests that managers clarify why AI is not suitable for particular tasks before allowing it to proceed,” the disclosure notes. The parentheses signal awareness that involving AI in the writing process could be detrimental to the brand. It further indicates that there may be no intention of refilling vacant positions, suggesting that AI may soon be expected to fill those roles.

This Week in AI

Musk’s Departure Leaves a Chaotic Mark

Last week, Elon Musk inferred his resignation from the White House, announcing the end of his controversial tenure as the de facto director of the “Doctor of Government Efficiency” (DOGE) under President Trump. Following his announcement, Trump convened a press conference to facilitate his departure. According to The New York Times, Musk claimed he had a drug that was heavily utilized during the campaign.

My colleague Nick Robbins noted the chaos left in Musk’s wake:

As Musk departed, he orchestrated the disruption of a half-formed strategy, dismantling institutions hindered by his allies implanted in key federal posts. His exit has already induced disorder within the government and heightened uncertainty, sparking inquiries about the extent of the vague task force’s influence in his absence—while others scramble to realign programs and services he obliterated.

Musk’s initial DOGE pitch aimed to save $2 trillion from the budget by eliminating excessive waste and fraud, alongside modernizing government software to enhance agency operations. So far, DOGE asserts it will yield approximately $140 billion in savings, although its claims have been criticized for significant inaccuracies. Trump’s new tax policies, not linked to DOGE, are projected to outpace DOGE’s savings while adding $2.3 trillion to the deficit. The promise of new, modernized software frequently centers around artificial intelligence (AI) chatbots, which are already in use by the Biden administration.

Ultimately, DOGE’s primary impact remains the disassembly of crucial government services and humanitarian support. Its cuts have targeted essential organizations like the National Oceanic and Atmospheric Administration. Officials responsible for weather predictions and disaster management have been put in jeopardy, similar to the protections offered to the Veterans Affairs Bureau. Numerous smaller agencies, including those managing homelessness policy within the Veterans Affairs Bureau, have faced shutdowns. DOGE’s measures have crippled numerous agencies, leaving uncertainty regarding whether Musk’s departing staff are tasked with updating services or merely shutting them down.

As Musk re-engages with Tesla and SpaceX, the organizations he has dismantled are left to tackle the remnants of his decisions.

As Musk resumes leadership of his tech ventures, many former employees and inexperienced engineers recruited for DOGE will still be entrenched within government departments. A prominent concern about DOGE’s future revolves around whether these staff members maintain access to sensitive government data, preserving the same authority they wielded under Musk.

Read the timeline for Musk’s ventures in Washington.

Navigating Misinformation

Influencers Selling AI Art Prompts

Would you consider purchasing instructions for ChatGPT?

Two weeks ago, the Instagram account @voidstomper, known for grotesque AI-generated videos and boasting 2.2 million followers, began selling unique prompts. The offer included ten prompts that contributed to the generation of the AI-powered videos posted by the account.

voidstomper remarked, “I initially hesitated to sell these, but I’m broke and they’re still going viral. Ten horrifying raw prompts I used, which garnered millions of views. Some may be illogical, but I utilize them across all AI video platforms.” The account manager has not responded to interview requests.

It’s not an isolated case. There is a burgeoning market for selling AI prompts. According to Promptbase founder Ben Stokes, the platform currently features around 20,000 sellers participating. Thousands of prompts are sold monthly, with writers compensating for their creations since 2022.

voidstomper marketed prompts designed for specific video creations, whereas buyers receive generalized templates rather than finite directives, as stated by Stokes.

“For instance, if a prompt is for creating a vintage-style poster of a renowned landmark, it will include a section like [LANDMARK NAME]. You could customize it with your local pier or any landmark you choose to depict,” he explained.

However, why would one purchase a text string that they could input themselves?

“Certain groups seek out high-quality, robust prompts for business applications. They wish to effectively integrate AI into their products or workflows. This typically necessitates prompts that yield consistent and reliable outputs. While the general perception is that ChatGPT is free, running sufficient generations to achieve a desired result could be expensive for businesses. Thus, investing in a prompt can be a more economical solution.

Even within the niche of AI-generated art, some view the selling of prompts as absurd. Holyfool36, an Instagram and TikTok influencer previously featured in this newsletter, expressed his distaste for such practices via email: “Frankly, I find it disappointing for the art community. Generating AI doesn’t require specialized skills; most people can figure out how to adapt prompts themselves without any cost.”

“I know voidstomper personally and have interacted with him frequently. I advised that the best way to monetize this would be to sell authentic and tangible products related to that brand.

Broader Technological Landscape