Entry-level jobs are being transformed as AI takes on routine tasks and skills expectations rise. How can employers harness the benefits of AI while still building the next generation of skilled leaders?

Artificial intelligence is transforming the way work is done across every industry. While much of the discussion has focused on productivity and efficiency, the most immediate impact is being felt at the entry level, where roles are being redefined, skills expectations are rising and traditional career pathways are under pressure.

New research from IDC, commissioned by Deel, shows that 98 percent of Australian organisations say AI has influenced the pace of hiring or the skills required for entry-level roles. Some organisations have slowed junior recruitment, while others are redesigning roles altogether as AI takes over routine and knowledge-based tasks.

According to Nick Catino, Global Head of Policy at Deel, this shift is already reshaping how businesses think about early-career talent. 

“AI is no longer emerging; it’s fully here. Entry-level jobs are changing, and the skills companies look for are changing with them. Both workers and businesses need to adapt quickly. This is not about staying competitive – it is about staying viable.”

For HR leaders, the challenge is clear. How can organisations embrace AI without weakening the talent pipelines they rely on to develop future leaders?

Entry-level roles are changing faster than expected

AI is accelerating the decline of traditional ‘learn by doing’ junior roles. Tasks that once provided foundational experience, such as reporting, data analysis and basic customer support, are increasingly automated. 

As a result, nine in 10 Australian organisations report role changes or displacement linked to AI, and nearly three-quarters say there are now fewer on-the-job development opportunities for junior employees.

At the same time, expectations for entry-level talent are rising. Employers are placing greater emphasis on practical skills, problem-solving ability and familiarity with AI tools, often valuing these capabilities above formal qualifications. 

Portfolios of work, technical certifications and critical thinking assessments are becoming standard requirements, reflecting a broader shift toward skills-based hiring.

While this approach can accelerate productivity, it also risks creating a widening skills gap if organisations reduce entry-level opportunities without replacing them with structured development pathways.

Upskilling is the opportunity, but execution remains uneven

The research shows organisations are not standing still. Seventy percent of Australian employers are already investing in AI training programs, with many moving beyond pilots to company-wide initiatives.

However, turning intent into impact remains a challenge. Common barriers include limited employee engagement, budget constraints and difficulty accessing expert trainers. 

Responsibility for reskilling is also unclear in many organisations, with HR often struggling to connect technical AI training to career development and workforce planning.

Leading organisations are taking a more integrated approach. Rather than treating AI upskilling as a standalone initiative, they are embedding learning into roles, focusing on practical application and encouraging continuous development as part of everyday work. 

The goal is not to create AI specialists across the board, but to ensure employees can work confidently and responsibly alongside intelligent systems.

Governance matters as much as skills

As AI becomes embedded in hiring, performance management and daily workflows, governance is emerging as a critical priority. While many organisations have AI guidelines in place, these are often informal and focused narrowly on data privacy or security.

Dr Chris Marshall, Vice President for AI in Asia Pacific at IDC, says organisations need to balance innovation with a human-centred approach. 

“Artificial intelligence is reshaping the workforce at an unprecedented pace. Organisations that will thrive are those that invest in upskilling, redefine entry-level opportunities and ensure governance and ethics evolve alongside innovation.”

Building a future-ready workforce

AI is not just changing jobs. It is reshaping how careers begin. Organisations that succeed will be those that redesign entry-level roles, invest in practical upskilling and establish clear governance frameworks.

For HR leaders, the opportunity lies in ensuring that AI strengthens – rather than erodes – the pathways that develop the next generation of talent.

👉 Read the full research, AI at Work: The Role of AI in the Global Workforce, to explore the complete findings and practical guidance for HR leaders navigating AI-driven change.