Replacing graduate roles with AI does not build a smarter business, it builds a shallow one, writes Paul Armstrong

Youth used to be the bet businesses made when they were serious about building future resilience. Early-career hires, valued for their adaptability, capacity for growth and affordability formed the bedrock of institutional knowledge, creating the conditions for future leadership and depth. Now that engine is being systematically dismantled, not due to a lack of work, but because businesses are prioritising automation, AI and offshoring over long-term capability.

The problem is huge, has been coming for a while and just got a shot in the arm. Graduate job listings in the UK have dropped by over 26 per cent in the past year, according to Adzuna data. In accountancy alone, the fall has been even steeper, with roles dropping by 44 per cent. The Big Four are at the sharp end of this shift. KPMG slashed graduate hiring from 1,399 to 942. Deloitte reduced intake by 18 per cent. EY and PwC followed suit with 11 and six per cent cuts respectively. These numbers are not temporary contractions, they signal a fundamental change in how firms perceive junior labour, and AI is only just getting into the bloodstream.

Youth unemployment is on the rise

Rather than reimagine entry-level work, most firms are removing it altogether. Tasks that used to introduce young employees to business operations like compiling research, preparing documents, writing reports and processing data are now being absorbed by AI systems. Large language models handle most of the documentation. Scheduling, transcription and initial analysis are increasingly automated. Anything that doesn’t require direct client interaction is either routed through an AI layer or sent to lower-cost teams offshore.

Esther O’Callaghan OBE, founder of Hundo, and Sam Hyams, CEO of Springpod, the virtual work experience provider, are speaking at the House of Commons on 21 July about what this means for the UK, and the world. Their message is stark: “For the past decade there has been........

© City A.M.