Half of SMEs set to cut entry-level jobs as AI adoption rises – Rathbones

A third of small and medium-sized businesses (SMEs) have cut graduate and entry-level jobs as artificial intelligence (AI) made its way into smaller firms, data from Rathbones revealed. 

Almost half (46%) of SMEs said they would hire fewer people as they increased investment in AI.

29% of SMEs were already using AI, with a further 28% planning to bring it in. 

Among those already using AI, 33% said they had reduced hiring of graduates or entry-level staff, while 62% said AI had made no difference to hiring so far.

Data analysis and reporting (50%), customer service and support (48%), and IT and software development (41%) were the roles most at risk.

The research comes as employment data showed almost a million (946,000) young people aged 16 to 24 were out of work, education or training. 

Stephanie Ebner, financial planning lead at Rathbones, said: “AI adoption isn’t just a big business trend – it is increasingly filtering down to SMEs, and that could create a vacancy black hole for young jobseekers. 

“Many employers now face a brutal choice: hire and train a graduate or deploy AI that can do most of the job instantly.