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Advances in artificial intelligence (AI) chatbots like ChatGPT are sparking concern among experts, who say the technology could significantly impact entry-level employment for recent college graduates. According to some industry leaders, these developments might either eliminate or drastically reshape many of these positions.

Anthropic CEO Dario Amodei recently told Axios that AI technology could halve entry-level jobs in the United States within the next five years. This prediction comes amid widespread steps by companies to embrace AI. Business Insider, for example, laid off 21% of its staff last week, with CEO Barbara Ping announcing a shift to AI to boost efficiency.

Experts who spoke to ABC News agreed that AI could replace or transform white-collar entry-level jobs, especially in fields like computer programming and law, where many college graduates typically begin their careers. However, they also noted that economic conditions play a part in current job market challenges.

Lynn Wu, a professor at the University of Pennsylvania, expressed empathy for recent graduates facing a tough job market. "In the short run, they may stay with mom and dad for a while. But in the long run, they'll be fine. They're AI natives," she said.

The New York Federal Reserve reported in April that the job market for recent graduates "deteriorated noticeably" over the early months of 2025, with unemployment reaching 5.8%—the highest level since 2021. The underemployment rate also exceeded 40%. According to Anu Madgavkar from the McKinsey Global Institute, these trends are more attributable to broader economic conditions rather than just technological advances.

Madgavkar pointed to President Donald Trump's tariff policy as a source of economic uncertainty that could contribute to youth unemployment. Yet, she also acknowledged that AI poses a significant threat to entry-level tasks in white-collar professions. For instance, AI can perform tasks like compiling legal precedents or writing basic code, tasks that typically fall to junior employees.

"The biggest problem is that the career ladder is being broken," Wu stated bluntly. Despite this, Madgavkar suggested that entry-level jobs might change rather than vanish, with a higher premium placed on skills such as problem-solving and the ability to work with AI tools.

Certain job sectors, such as manual labor, trades, and professional roles like doctors and upper management, remain largely unaffected by AI. Researcher Isabella Loaiza from the Massachusetts Institute of Technology noted that while AI impacts white-collar work, it also increases the demand for jobs requiring critical thinking and empathy, such as early-education teachers, home health aides, and therapists.

In summary, while AI poses a significant threat to traditional entry-level white-collar jobs, it also presents an opportunity for young professionals who can adapt and harness these new tools. Meanwhile, jobs that heavily rely on human qualities seem more resilient against the wave of automation.