Survey Finds One-Third of Employers Replacing Entry-Level Jobs With AI While Graduate-Business Applications Rise

One-third of employers say they are replacing entry-level jobs with AI, according to GMAC’s latest Corporate Recruiters survey of more than 600 recruiters worldwide. More than half of the respondents recruit for Fortune 100 or Fortune 500 companies. Technology leads the trend, with 40 percent of employers in that sector reporting the change, followed by manufacturing.

Applications to graduate business programs rose 13 percent in 2024 and another 2 percent in 2025. Just 13 percent of employers said they hired more MBA graduates in 2025 than the prior year. Hiring for master’s in finance graduates reached 68 percent, below the 74 percent of employers who had expected to make such hires.

Median starting salary estimates for MBA graduates are projected to fall to $120,000 in 2026 from $125,000 in 2025. Estimates for bachelor’s degree holders slipped from $75,000 to $72,000, while those for experienced hires from industry fell from $110,000 to $107,500.

Sabrina White, senior vice president of school and industry engagement at GMAC, said employers continue to seek graduates who can apply judgment and solve problems even as routine tasks are automated.

“Employers are increasingly using AI to automate routine tasks in areas like coding, data processing, and customer service, but they continue to invest in talent that can apply judgment, solve problems, and help organizations navigate change,” White stated.

White added that employers view graduate business education as preparation for complexity and decision-making under uncertainty. “What stands out to me is that employers aren’t lowering expectations—they’re raising them,” she said.