Over one-third of companies plan to replace entry roles with AI, survey says

Summary

Punchy take: companies are racing to automate entry-level and back-office jobs — and that short-term prize could cost the next generation of leaders. A Korn Ferry report, based on more than 1,670 external global talent leaders plus 230 Korn Ferry experts, finds many employers plan to replace roles with AI, especially in operations/back office and at entry level. The firm warns this threatens the traditional pipeline that grooms future managers and senior leaders.

The report highlights a mismatch: while AI adoption accelerates, only a small share of talent-acquisition (TA) leaders think executives are ready to lead through the transition. Employers still prize critical thinking above all, but investment in training and clearer C-suite communication are needed to avoid a long-term leadership shortfall.

Key Points

More than 40% of companies expect to replace roles with AI; 58% in operations/back office and 37% at entry level, per Korn Ferry.
The study surveyed 1,670+ external talent leaders and 230 Korn Ferry experts (report dated 28 Oct).
Korn Ferry warns cutting entry-level hires may save money short-term but risks drying up a pipeline for future leaders.
Only 11% of TA leaders say their executives are well-prepared to lead through the AI transition.
TA teams need to help the C-suite articulate an AI vision and to blend AI with human skills; currently only about one-third of TA pros in recent LinkedIn research felt capable of that blend.
Critical thinking remains the top hiring priority (73% of TA leaders) — staff must assess and override AI when needed.
Separate findings from General Assembly show many entry-level hires are underprepared, underscoring the need for employer-led training to avoid skills shortages.

Content Summary

The Korn Ferry report shows a clear push to automate routine, entry and back-office work: firms see AI as a way to reduce costs and increase efficiency in 2026–2027. However, leaders flag a strategic downside — removing entry roles cuts off an on-the-job training route that historically feeds mid and senior management ranks. That loss could cause a leadership gap down the line.

The research also reveals capability gaps inside organisations. Few TA leaders believe their executives are prepared for the AI shift, and many TA teams themselves struggle to integrate AI into talent strategy. Despite AI’s prominence, hiring priorities still favour human judgement: critical thinking tops the list because organisations need people who can critique AI outputs and know when to overrule them.

Complementary data from General Assembly suggests entry-level candidates are frequently not ready for roles, and that employers often view training as the worker’s responsibility. Korn Ferry and others urge firms to invest in training and succession planning now to prevent a future talent and leadership crisis.

Context and Relevance

This is essential reading for HR, talent-acquisition and business leaders. The findings sit at the intersection of two big trends: rapid AI adoption and persistent skills shortages. Decisions to replace entry-level roles with automation will affect succession planning, diversity of experience within organisations, and long-term leadership pipelines.

For firms planning AI rollouts, the report signals the need for a balanced approach: automate where it makes sense, but retain or retrain roles that serve as development platforms. It also underscores regulatory and reputational dimensions — workforce transitions driven by AI are likely to draw scrutiny if they undermine career progression or widen skills gaps.

Why should I read this?

Because if you care about future leaders — and you should — this is a red flag. It’s not just about cutting costs now; it’s about whether your organisation will have the people who can run it in five to ten years. Quick, punchy briefing: AI is coming for the junior jobs first. Read this so you can argue for training, pipelines and a plan that keeps talent development in the picture.