AI: 3 in 10 HR leaders hiring fewer entry‑level workers in favour of mid‑level employees

Three in 10 (30%) HR leaders in the U.S. say their talent acquisition strategy is shifting towards hiring fewer entry‑level workers in favour of mid‑level employees using AI to complete what were previously junior tasks. 

Currently 64% of respondents expect entry‑level hiring to increase over the next 24 months, and only 12% project a decrease. Of the 12%, more than half (56%) cite AI‑driven automation or redistribution of tasks as the primary driver, ahead of budget constraints (32%) and internal restructuring (28%).

These are the findings of a recent report released by D2L, based on a survey of 546 HR leaders (director+ with decision-making authority related to human resources (HR), talent acquisition, learning & development training, or performance management).

More than half (54%) of the Canadian hiring managers said that AI is accelerating advancement for employees with strong technical capabilities, according to a previous Robert Half report.

AI’s impact on senior staff, leadership pipeline

Inside teams, the use of GenAI is changing delegation patterns, according to the D2L report. According to the survey, 56% of respondents say AI has reduced the need for senior staff to assign basic research, writing, data analysis and administrative work to junior associates. D2L warns that this “hollows out” the traditional proving ground where new graduates learned by doing.

The report links these shifts to changing workforce structures. Nearly half of HR leaders envision a future “diamond‑shaped” workforce, heavy in mid‑level roles but with comparatively fewer entry‑level and senior positions if current trends persist.

Despite the structural changes, 77% of HR leaders say they are confident in their organisation’s ability to develop future strategic leaders. At the same time, among respondents who expect entry‑level hiring to decline due to AI, 58% agree that the reduction of these roles “will create a shortage of qualified senior leaders in our organisation within five years.”

D2L argues that leadership development models are still built on the assumption that junior staff accumulate expertise through repeated exposure to routine work. The report notes that “these tasks are not just administrative; they are the fundamental building blocks of deep knowledge,” and cautions that when AI completes them instead, junior employees risk shifting “from a creator to a consumer of information.”

The survey also points to worsening soft‑skill gaps among new entrants. HR leaders say skills gaps among recent entry‑level hires are worse than they were three to five years ago in problem solving (75%), interpersonal skills (76%) and communication (78%). 

Nearly three‑quarters of respondents (74%) say they do not yet have active upskilling or employee development programs in place to replace on‑the‑job learning lost to automation, suggesting formal support structures are lagging behind workplace change.

Frequent users of AI feel more secure in their jobs than colleagues who have not yet adopted the technology, even if they feel less productive, according to a previous global report.

D2L calls for strategic learning investment

Sandy Rezendes, Head of Corporate Learning and Development at D2L, says the findings underscore the need to reposition learning as a strategic asset. “The risk isn’t simply that AI changes aspects of entry-level hiring. It’s that it may reduce some of the foundational on-the-job learning that comes with the cognitive struggle and tasks inherent in entry-level work that people need to grow into experienced subject matter experts and future leaders,” she said.

“Organisations may gain efficiency in the short term, but if they don’t also invest in intentional learning, upskilling, and development, they may risk creating a talent gap down the road as they’re not growing their own experienced workforce,” Rezendes adds. “This is a moment for employers to treat learning as a strategic investment in the future of their workforce.”

D2L recommends employers develop structured learning programs that go beyond basic onboarding, create internal apprenticeships and rotational assignments, use AI‑enabled simulations to recreate complex tasks, and shift towards skills‑based hiring that prioritises critical thinking, communication and AI literacy.

The report concludes that “the job apocalypse is not a crash, but a significant reconfiguration,” warning that the “cognitive struggle and learning-by-doing” that once underpinned entry‑level work are being eroded by rapid AI adoption.

Canadian firms are banking on AI to boost efficiency while they try to manage tariff‑driven cost pressures, according to a previous report.

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